(6) NOTICE OF VIOLATIONS.—Whenever it ap-
pears to a Federal or State official or agency with
supervisory or examination authority over any affili-
ate of a financial services holding company that such
affiliate or such financial services holding company
is violating, has violated, or is about to violate any
provision of this section or any regulation prescribed
under this section, such official or agency shall
promptly notify the appropriate Federal regulatory
authority in order that the appropriate Federal reg-
ulatory authority in consultation with the notifying
agency may determine whether action under this
subsection is appropriate.
(j) DIVESTITURE.—
(1) IN GENERAL.—In addition to all of its other
regulatory and supervisory powers, if the appro-
priate Federal banking agency determines that an
insured depository institution under its supervision
has engaged in a continuing course of conduct in-
volving its financial services holding company or any
affiliate of such holding company which has had, or
has a significant probability of having, the effect of
causing such insured depository institution to be in
an unsafe or unsound condition, it may make an ini-
tial finding that the financial services holding com-
pany should be required to terminate its control of
the insured depository institution. If the appropriate
Federal banking agency makes such an initial find-
ing, it shall within 3 days so notify the financial
services holding company controlling the insured de-
pository institution and the National Financial Serv-
ices Committee. Such notice shall provide a state-
ment for the basis of the appropriate Federal bank-
ing agency’s action.
(2) HEARING PROCEDURES.—Not later than 30
days after receipt of the notice described in para-
graph (1), the financial services holding company re-
ceiving such notice may request an agency hearing
before the appropriate Federal banking agency. In
such hearing, all issues shall be determined pursuant
to section 554 of title 5, United States Code. The
length of the hearing shall be determined by the ap-
propriate Federal banking agency, and such hearing
may be before a hearing examiner appointed by such
agency. At the conclusion thereof, the appropriate
Federal banking agency shall issue a final order, on
the basis of the record made at such hearing, affirm-
ing or reversing the initial finding of the appropriate
Federal banking agency. A company that fails to re-
quest an agency hearing under this paragraph shall
be deemed to have consented to the issuance of a
final order affirming the initial finding without the
necessity of the hearing provided for in this para-
graph.
(3) TERMINATION OF CONTROL.—If such final
order affirms the initial finding, the financial serv-
ices holding company shall, upon completion of the
judicial review, if any, of the appropriate Federal
banking agency’s final order as provided for in sub-
section (m), terminate its control of the insured de-
pository institution involved within 1 year.
(k) CRIMINAL PENALTIES.—
(1) WILLFUL
VIOLATIONS.—Any company or
insured depository institution which knowingly and
willfully violates or knowingly and willfully partici-
pates in a violation of any provision of this section,
or any rule, regulation, or order issued by an appro-
priate Federal banking agency pursuant thereto,
shall, upon conviction, be fined for each violation not
more than the greater of $250,000 or an amount
equal to 1⁄100 of 1 percent of the minimum required
capital of the relevant insured depository institution
for each day during which the violation continues,
except that in no case shall any such amount for any
violation or related series of violations exceed 1 per-
cent of the minimum required capital of the relevant
insured depository institution.
(2) ENFORCEMENT
AGAINST
INDIVIDUALS.—
Any officer, director, employee, or agent of any com-
pany, insured depository institution, and any other
natural person who knowingly and willfully partici-
pates in a violation of any provision of this section
or any rule, regulation, or order issued pursuant
thereto, shall upon conviction be imprisoned not less
than 5 years and fined for each violation not more
than the greater of $250,000 or double the individ-
ual’s annual compensation at the time the violation
occurred.
(3) ENFORCEABILITY AGAINST OFFICERS AND
EMPLOYEES.—Every officer, director, employee, and
agent of a financial services holding company or in-
sured depository institution also shall be subject to
the same penalties for false entries in any book, re-
port, or statement of such company or insured de-
pository institution as are applicable to officers, di-
rectors, employees, and agents of member banks for
false entries in any books, reports, or statements of
member banks under section 1005 of title 18, Unit-
ed States Code.
(4) ENFORCEABILITY AGAINST HOLDING COM-
PANIES.—A financial services holding company and
its affiliates shall be subject to the provisions of title
18, United States Code, to the same extent as a reg-
istered bank holding company or savings and loan
holding company or any affiliate of such a company.
(l) CIVIL ENFORCEMENT, CEASE-AND-DESIST OR-
DERS, CIVIL MONEY PENALTIES, REMOVAL, AND PROHI-
BITION AUTHORITY.—Subsections (b) through (s) and
subsection (u) of section 8 of the Federal Deposit Insur-
ance Act shall apply to any financial services holding com-
pany in the same manner as they apply to an insured de-
pository institution. Nothing in subsection (b) or (c) of
that section 8 shall authorize any Federal banking agency,
other than the appropriate Federal banking agency, to
issue a notice of charges or cease-and-desist order against
a financial services holding company.
(m) CIVIL MONEY PENALTIES.—
(1) IN
GENERAL.—The appropriate Federal
banking agency shall have authority to assess such
a civil money penalty, after giving notice and an op-
portunity to the company or insured depository insti-
tution, officer, director, employee, agent, or other
natural person to submit data, views, and argu-
ments, and after giving due consideration to the ap-