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thority of the Corporation and the duties and obliga-
tions of an insured depository institution under this
Act during such period, and in the event that the
bank is closed due to an inability to meet the de-
mands of the bank’s depositors during such period,
the Corporation shall have the same powers and
rights with respect to such bank as in the case of an
insured depository institution.
‘‘(g) ADVERTISEMENTS.—
‘‘(1) IN GENERAL.—A bank that voluntarily ter-
minates the bank’s insured status under this section
shall not advertise or hold itself out as having insured
deposits, except that the bank may advertise the tem-
porary insurance of deposits under subsection (f) if,
in connection with any such advertisement, the adver-
tisement also states with equal prominence that addi-
tions to deposits and new deposits made after the ef-
fective date of the termination are not insured.
‘‘(2) CERTIFICATES OF DEPOSIT, OBLIGATIONS,
AND SECURITIES.—Any certificate of deposit or other
obligation or security issued by a State bank or a na-
tional bank after the effective date of the voluntary
termination of the bank’s insured status under this
section shall be accompanied by a conspicuous,
prominently displayed notice that such certificate of
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deposit or other obligation or security is not insured
under this Act.
‘‘(h) NOTICE REQUIREMENTS.—
‘‘(1) NOTICE TO THE CORPORATION.—The notice
required under subsection (a)(1)(A) shall be in such
form as the Corporation may require.
‘‘(2) NOTICE
TO
DEPOSITORS.—The notice re-
quired under subsection (a)(1)(B) shall be—
‘‘(A) sent to each depositor’s last address of
record with the bank; and
‘‘(B) in such manner and form as the Cor-
poration finds to be necessary and appropriate
for the protection of depositors.’’.
(3) DEFINITION.—Section 19(b)(1)(A)(i) of the
Federal Reserve Act (12 U.S.C. 461(b)(1)(A)(i)) is
amended—
(A) by striking ‘‘Act or any bank’’ and in-
serting ‘‘Act, any bank’’; and
(B) by inserting ‘‘, or any wholesale finan-
cial institution as defined in section 9B’’ before
the semicolon at the end.
(e) REPORTS
ON DISCOUNTS
AND ADVANCES
TO
WHOLESALE FINANCIAL INSTITUTIONS.—Section 10B of
the Federal Reserve Act (12 U.S.C. 347(b)) is amended by
adding at the end the following new subsection:
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‘‘(c) REPORTS
ON DISCOUNTS
AND ADVANCES
TO
WHOLESALE FINANCIAL INSTITUTIONS.—
‘‘(1) IN GENERAL.—The Board shall submit a re-
port to the Congress at the end of any year in which
any wholesale financial institution has obtained a
discount, advance, or other extension of credit from a
Federal reserve bank.
‘‘(2) CONTENTS.—Any report submitted under
paragraph (1) shall explain the circumstances and
need for any discount, advance, or other extension of
credit to a wholesale financial institution during the
period covered by the report, including the type and
amount of credit extended and the amount of credit
remaining outstanding as of the date of the report.’’.
SEC. 162. HOLDING COMPANY CONTROL OF UNINSURED DE-
POSITORY INSTITUTIONS.
(a) IN GENERAL.—Section 6 of the Bank Holding
Company Act of 1956 (as added by section 103 of this title)
is amended by inserting after subsection (k) (as added by
section 106 of this title) the following new subsection:
‘‘(l) CONTROL OF UNINSURED DEPOSITORY INSTITU-
TIONS.—
‘‘(1) SCOPE OF APPLICATION.—This subsection
shall apply to bank holding companies which control
only wholesale financial institutions and control no
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insured depository institution (other than an institu-
tion described in subparagraph (C) or (G) of section
2(c)(2)).
‘‘(2) FINDINGS AND PURPOSES.—
‘‘(A) FINDINGS.—The Congress finds as fol-
lows:
‘‘(i) Some investment banking, insur-
ance, and other financial companies invest
in nonfinancial companies—
‘‘(I) as an incident to their core
business; or
‘‘(II) in recognition of an unusual
investment opportunity.
‘‘(ii) Such ownership, which would not
otherwise be permitted under this Act if the
investment banking, insurance, or other fi-
nancial company were a bank holding com-
pany—
‘‘(I) is in most cases small in re-
lation to the overall size of the com-
pany, generally no more than 5 per-
cent of the total consolidated revenue of
such company’s revenues and, in the
case of a foreign bank, such ownership
in the United States is generally no
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more than 5 percent of the total con-
solidated revenue of such foreign bank
in the United States; and
‘‘(II) in no way detracts from the
financial focus of the company’s plan-
ning, operations, resource allocation,
and risk management.
‘‘(iii) Investments of this type should
not disqualify an investment banking, in-
surance, or other financial company from
an affiliation with an uninsured depository
institution.
‘‘(B) PURPOSE.—It is the purpose of this
subsection to provide the flexibility necessary to
accommodate 
limited 
investments 
in 
non-
financial firms that wish to control an unin-
sured depository institution (and do not other-
wise control any insured depository institution)
while maintaining the separation of banking
and commerce intended by this Act.
‘‘(3) LIMITED INVESTMENTS ALLOWED BY FINAN-
CIAL COMPANIES CONTROLLING ONLY UNINSURED DE-
POSITORY INSTITUTIONS.—Consistent with the pur-
poses of this subsection, the Board shall, by regulation
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or order, allow bank holding companies to control the
shares of nonfinancial companies so long as—
‘‘(A) the nonfinancial firm is sufficiently
small such that the financial nature of the bank
holding company is unaffected by the control of
such shares;
‘‘(B) the bank holding company does not
control any depository institution (other than a
wholesale financial institution or an institution
described in subparagraph (C) or (G) of section
2(c)(2); and
‘‘(C) the purposes of this Act, including the
separation of banking and commerce and the
preservation of the safety and soundness of de-
pository institutions, are fulfilled.
‘‘(4) PROVISIONS APPLICABLE TO HOLDING COM-
PANIES
WITH
INVESTMENTS
UNDER
THIS
SUB-
SECTION.—
‘‘(A) CROSS MARKETING RESTRICTIONS.—A
wholesale financial institution or other deposi-
tory institution controlled by a bank holding
company which also controls a company pursu-
ant to this subsection shall not—
‘‘(i) offer or market, directly or
through any arrangement, any product or
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service of an affiliate whose shares are
owned or controlled by the bank holding
company pursuant to this subsection; or
‘‘(ii) permit any product or service of
such wholesale financial institution or other
institution to be offered or marketed, di-
rectly or through any arrangement, by or
through any such affiliate.
‘‘(B) USE OF COMMON NAME.—A bank hold-
ing company shall not permit a wholesale finan-
cial institution or other depository institution
subsidiary to adopt a name which is the same as
or similar to, or a variation of, the name or title
of an affiliate engaged in activities pursuant to
this subsection.
‘‘(C) COMMODITIES.—
‘‘(i) IN
GENERAL.—A bank holding
company which controls a company pursu-
ant to this subsection and was predomi-
nately engaged as of January 1, 1995, in
securities activities in the United States (or
any successor to any such company) may
engage in, or directly or indirectly own or
control shares of a company engaged in, ac-
tivities related to the trading, sale, or in-
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vestment in commodities and underlying
physical properties that were not permis-
sible for bank holding companies to conduct
in the United States as of January 1, 1995,
if such bank holding company, or any sub-
sidiary of such holding company, was en-
gaged directly, indirectly, or through any
such company in any of such activities as
of January 1, 1995, in the United States.
‘‘(ii) 
LIMITATION.—Notwithstanding
any other provision of this subsection, the
aggregate investment by a bank holding
company in activities under this subpara-
graph (other than those otherwise permitted
for all bank holding companies under this
Act) shall not at any time exceed 5 percent
of the total consolidated assets of such bank
holding company.
‘‘(iii) SUCCESSOR DEFINED.—For pur-
poses of clause (i), the term ‘successor’
means, with respect to any bank holding
company described in clause (i), any com-
pany that merges with, or acquires control
of, such bank holding company.
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‘‘(D) QUALIFIED
INVESTOR
IN
A
BANK
HOLDING COMPANY WHICH CONTROLS A COMPANY
UNDER THIS SUBSECTION.—
‘‘(i) IN
GENERAL.—Notwithstanding
any other provision of Federal or State law,
a qualified investor—
‘‘(I) shall not be, or be deemed to
be, a bank holding company or any
similar organization; and
‘‘(II) shall not be deemed to con-
trol or be affiliated with any such com-
pany or organization or any subsidi-
ary of any such company or organiza-
tion (other than for purposes of section
23A and 23B of the Federal Reserve
Act),
by virtue of the investor’s ownership or con-
trol of shares of a bank holding company
which controls a company pursuant to this
subsection.
‘‘(ii) 
QUALIFIED
INVESTOR
DE-
FINED.—For purposes of this subparagraph,
the term ‘qualified investor’ means any
United States company (including a parent
company and all subsidiaries of which the
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parent company holds at least 80 percent of
the total voting equity securities) which
since February 27, 1995, has directly or in-
directly owned or controlled shares of cap-
ital stock representing at least 10 percent,
and not more than 45 percent, of the out-
standing voting shares or voting power of a
company that—
‘‘(I) becomes a bank holding com-
pany which controls a company pursu-
ant to this subsection or a subsidiary
of any such bank holding company;
and
‘‘(II) before the company became a
bank holding company which controls
a company pursuant to this subsection,
or a subsidiary of any such bank hold-
ing company, had more than 50 per-
cent of the company’s assets employed
directly or indirectly in securities ac-
tivities.
‘‘(iii) CROSS-MARKETING AND COMMON
NAME.—A wholesale financial institution or
other 
uninsured 
depository 
institution
which is controlled by a bank holding com-
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pany which controls a company pursuant
to this subsection shall not—
‘‘(I) offer or market products or
services of a qualified investor in the
bank holding company of which the
wholesale financial institution is an
affiliate;
‘‘(II) permit the products or serv-
ices of such wholesale financial institu-
tion or uninsured depository institu-
tion to be offered or marketed in con-
nection with products or services of
such qualified investor; or
‘‘(III) adopt a name which is the
same as or similar to, or a variation
of, the name or title of such qualified
investor.
‘‘(iv) EXAMINATION AND REPORTING.—
Notwithstanding any other provision of law,
the Board may conduct examinations of, or
require reports from, a qualified investor
only to the extent that the Board reasonably
determines that such examinations or re-
ports are necessary—
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‘‘(I) to ensure compliance with
this subparagraph; or
‘‘(II) to the extent that the quali-
fied investor is an affiliate of a whole-
sale financial institution for purposes
of section 23A of the Federal Reserve
Act, to ensure compliance with restric-
tions imposed by law or regulation on
transactions between the qualified in-
vestor and such wholesale financial in-
stitution.
‘‘(5) NO DEPOSIT INSURANCE FUND LIABILITY.—
No Federal deposit insurance funds may be used in
connection with the failure of, or any proposed assist-
ance to, a wholesale financial institution or other un-
insured depository institution controlled by a bank
holding company which controls a company pursuant
to this subsection.
‘‘(6) QUALIFICATION OF FOREIGN BANK AS BANK
HOLDING COMPANY WITH INVESTMENTS PURSUANT TO
THIS SUBSECTION.—
‘‘(A) IN GENERAL.—Any foreign bank that
operates a branch, agency or commercial lending
company in the United States (and any com-
pany that owns or controls such foreign bank),