II 

111TH CONGRESS 

1ST SESSION S. 2886 

To prohibit certain affiliations (between commercial banking and investment 

banking companies), and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

DECEMBER 16, 2009 

Ms. CANTWELL (for herself, Mr. MCCAIN, and Mr. FEINGOLD) introduced the 

following bill; which was read twice and referred to the Committee on 

Banking, Housing, and Urban Affairs 

A BILL 

To prohibit certain affiliations (between commercial banking 

and investment banking companies), and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Banking Integrity Act 

5 of 2009’’. 

6 SEC. 2. RESTORING LIMITATIONS ON FINANCIAL INSTITU7 TION AFFILIATIONS. 

8 (a) LIMITATION ON AFFILIATION.—The Banking Act 

9 of 1933 (12 U.S.C. 221a et seq.) is amended by inserting 

10 before section 21 the following: 


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1 ‘‘SEC. 20. Beginning 1 year after the date of enact2 ment of the Banking Integrity Act of 2009 , no member 

3 bank may be affiliated, in any manner described in section 

4 2(b), with any corporation, association, business trust, or 

5 other similar organization that is engaged principally in 

6 the issue, flotation, underwriting, public sale, or distribu7 tion at wholesale or retail or through syndicate participa8 tion stocks, bonds, debenture, notes, or other securities, 

9 except that nothing in this section shall apply to any such 

10 organization which shall have been placed in formal liq11 uidation and which shall transact no business, except such 

12 as may be incidental to the liquidation of its affairs.’’. 

13 (b) LIMITATION ON COMPENSATION.—The Banking 

14 Act of 1933 (12 U.S.C. 221 et seq.) is amended by insert15 ing after section 31 the following: 

16 ‘‘SEC. 32. Beginning 1 year after the date of enact17 ment of the Banking Integrity Act of 2009, no officer, 

18 director, or employee of any corporation or unincorporated 

19 association, no partner or employee of any partnership, 

20 and no individual, primarily engaged in the issue, flota21 tion, underwriting, public sale, or distribution, at whole22 sale or retail, or through syndicate participation, of stocks, 

23 bonds, or other similar securities, shall serve simulta24 neously as an officer, director, or employee of any member 

25 bank, except in limited classes of cases in which the Board 


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1 of Governors of the Federal Reserve System may allow 

2 such service by general regulations when, in the judgment 

3 of the Board of Governors, it would not unduly influence 

4 the investment policies of such member bank or the advice 

5 given to customers by the member bank regarding invest6 ments.’’. 

7 SEC. 3. PROHIBITING DEPOSITORY INSTITUTIONS FROM 

8 ENGAGING IN INSURANCE-RELATED ACTIVI9 TIES. 

10 (a) IN GENERAL.—Beginning 1 year after the date 

11 of enactment of this Act, and notwithstanding any other 

12 provision of law, in no case may a depository institution 

13 engage in the business of insurance or any insurance-re14 lated activity. 

15 (b) DEFINITION.—As used in this section, the term 

16 ‘‘business of insurance’’ means the writing of insurance 

17 or the reinsuring of risks by an insurer, including all acts 

18 necessary to such writing or reinsuring and the activities 

19 relating to the writing of insurance or the reinsuring of 

20 risks conducted by persons who act as, or are, officers, 

21 directors, agents, or employees of insurers or who are 

22 other persons authorized to act on behalf of such persons. 

Æ 


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