I
105TH CONGRESS
1ST SESSION
H. R. 2940
To enhance competition and consumer choice in the delivery of financial
products and services.
IN THE HOUSE OF REPRESENTATIVES
NOVEMBER 8, 1997
Mr. DREIER (for himself and Mrs. MYRICK) introduced the following bill;
which was referred to the Committee on Banking and Financial Services,
and in addition to the Committee on Commerce, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
A BILL
To enhance competition and consumer choice in the delivery
of financial products and services.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Financial Services
Competitive Enhancement Act’’.
SEC. 
2. 
ANTI-AFFILIATION 
PROVISIONS 
OF 
‘‘GLASS-
STEAGALL ACT’’ REPEALED.
(a) SECTION 20 REPEALED.—Section 20 of the
Banking Act of 1933 (12 U.S.C. 377) is repealed.
(b) SECTION 32 REPEALED.—Section 32 of the
Banking Act of 1933 (12 U.S.C. 78) is repealed.
SEC. 3. FINANCIAL ACTIVITIES.
Section 4(c)(8) of the Bank Holding Company Act
of 1956 (12 U.S.C. 1843(c)(8)) is amended to read as
follows:
‘‘(8) shares of any company the activities of
which the Board has determined (by regulation or
order) to be financial in nature or incidental to such
financial activities and—
‘‘(A) effective 90 days after the date of the
enactment of the Financial Services Competitive
Equality Act, it shall be financial in nature to
provide insurance as principal, agent, or broker
in any State, in full compliance with the laws
and regulations of such State that uniformly
apply to each type of insurance license or au-
thorization in such State, except that in no
event shall the company, the bank holding com-
pany, or any affiliate of the company or bank
holding company be subject to any State law or
regulation that restricts a bank from having an
affiliate, agent, or employee in such State li-
censed to provide insurance as principal, agent,
or broker; and
‘‘(B) the Board shall prescribe regulations
concerning insurance affiliations that provide
equivalent treatment for all stock and mutual
insurance companies that control or are other-
wise affiliated with a bank and fully accommo-
date and are consistent with State law;’’.
SEC. 4. INSURANCE COMPANY INVESTMENTS.
Section 4 of the Bank Holding Company Act of 1956
(12 U.S.C. 1843) is amended by adding at the end the
following new subsection:
‘‘(k) INSURANCE
COMPANY
INVESTMENTS.—Not-
withstanding subsection (a), a bank holding company may
directly or indirectly acquire or control, whether as prin-
cipal, on behalf of 1 or more entities (including any sub-
sidiary of the holding company which is not a depository
institution or subsidiary of a depository institution) or oth-
erwise, shares, assets, or ownership interests (including
without limitation debt or equity securities, partnership
interests, trust certificates or other instruments represent-
ing ownership) of a company or other entity, whether or
not constituting control of such company or entity, en-
gaged in any activity not authorized pursuant to this sec-
tion if—
‘‘(1) the shares, assets, or ownership interests
are not acquired or held by a depository institution
or a subsidiary of a depository institution;
‘‘(2) such shares, assets, or ownership interests
are acquired and held by an insurance company that
is predominantly engaged in underwriting life, acci-
dent and health, or property and casualty insurance
(other than credit-related insurance);
‘‘(3) such shares, assets, or ownership interests
represent an investment made in the ordinary course
of business of such insurance company in accordance
with relevant State law governing such investments;
and
‘‘(4) during the period such shares, assets, or
ownership interests are held, the bank holding com-
pany does not directly or indirectly participate in the
day-to-day management or operation of the company
or entity except insofar as necessary to achieve the
objectives of paragraph (3).’’.
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