Union Calendar No. 74
104TH CONGRESS
1ST SESSION
H. R. 1062
[Report No. 104–127, Parts I, II, and III]
A BILL
To enhance competition in the financial services in-
dustry by providing a prudential framework for
the affiliation of banks, securities firms, and
other financial service providers.
JUNE 22, 1995
Reported with an amendment without recommendation,
committed to the Committee of the Whole House on
the State of the Union, and ordered to be printed
IB
Union Calendar No. 74
104TH CONGRESS
1ST SESSION
H. R. 1062
[Report No. 104–127, Parts I, II, and III]
To enhance competition in the financial services industry by providing a
prudential framework for the affiliation of banks, securities firms, and
other financial service providers.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 27, 1995
Mr. LEACH 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 subsequently determined by the Speaker,
in each case for consideration of such provisions as fall within the juris-
diction of the committee concerned
MAY 18, 1995
Reported from the Committee on Banking and Financial Services with an
amendment
[Strike out all after the enacting clause and insert the part printed in italic]
MAY 18, 1995
Referral to the Committee on Commerce extended for a period ending not
later than June 16, 1995
JUNE 16, 1995
Referral to the Committee on Commerce extended for a period ending not
later than June 22, 1995
JUNE 22, 1995
Reported from the Committee on Commerce with an amendment without rec-
ommendation, committed to the Committee of the Whole House on the
State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed in italic]
[For text of introduced bill, see copy of bill as introduced on February 27, 1995]
A BILL
To enhance competition in the financial services industry
by providing a prudential framework for the affiliation
of banks, securities firms, and other financial service
providers.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the ‘‘Fi-
nancial Services Competitiveness Act of 1995’’.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I—BANK SECURITIES ACTIVITIES AND AFFILIATIONS WITH
SECURITIES FIRMS AND OTHER FINANCIAL COMPANIES
Subtitle A—Securities Activities
Sec. 101. Anti-affiliation provision of the Banking Act of 1933 repealed.
Sec. 102. Financial services holding companies authorized to have securities af-
filiates.
Sec. 103. Establishment and operations of securities affiliates.
Sec. 104. Safeguards relating to securities affiliates.
Sec. 105. Ownership of shares of certain companies by financial services holding
companies.
Sec. 106. Provisions applicable to limited purpose banks.
Sec. 107. Securities company affiliations of FDIC—insured banks.
Sec. 108. Authority to terminate grandfather rights under the International
Banking Act of 1978.
Sec. 109. Effect on State laws prohibiting the affiliation of banks and securities
companies.
Sec. 110. Municipal securities.
Sec. 111. Interagency agreement relating to retail sales of certain nondeposit in-
vestment products.
Sec. 112. Effective date.
Subtitle B—Investment Bank Holding Companies
Sec. 116. Investment bank holding companies.
Sec. 117. Wholesale financial institutions.
Subtitle C—Financial Activities
Sec. 121. Financial activities.
Sec. 122. No prior approval required for well capitalized and well managed fi-
nancial services holding companies.
Sec. 123. Streamlined examination and reporting requirements for all financial
services holding companies.
Sec. 124. Holding company supervision for financial services holding companies
engaged primarily in nonbanking activities.
Sec. 125. Conversion of unitary savings and loan holding companies to financial
services holding companies.
Sec. 126. Financial services advisory committee.
Sec. 127. Coordination with State law.
Sec. 128. Conforming amendments to the Bank Holding Company Act of 1956.
Sec. 129. Conforming amendments to the Bank Holding Company Act Amend-
ments of 1970.
Sec. 130. Credit cards for business purposes.
Subtitle D—Interagency Banking and Financial Services Advisory Committee
Sec. 141. Interagency banking and financial services advisory committee.
TITLE II—FUNCTIONAL REGULATION
Subtitle A—Brokers and Dealers
Sec. 201. Definition of broker.
Sec. 202. Definition of dealer.
Sec. 203. Power to exempt from the definitions of broker and dealer.
Sec. 204. Margin requirements.
Sec. 205. Effective date.
Subtitle B—Bank Investment Company Activities
Sec. 211. Custody of investment company assets by affiliated bank.
Sec. 212. Indebtedness to affiliated person.
Sec. 213. Lending to an affiliated investment company.
Sec. 214. Independent directors.
Sec. 215. Additional SEC disclosure authority.
Sec. 216. Definition of broker under the Investment Company Act of 1940.
Sec. 217. Definition of dealer under the Investment Company Act of 1940.
Sec. 218. Removal of the exclusion from the definition of investment adviser for
banks that advise investment companies.
Sec. 219. Definition of broker under the Investment Advisers Act of 1940.
Sec. 220. Definition of dealer under the Investment Advisers Act of 1940.
Sec. 221. Interagency consultation.
Sec. 222. Treatment of bank common trust funds.
Sec. 223. Investment advisers prohibited from having controlling interest in reg-
istered investment company.
Sec. 224. Conforming change in definition.
Sec. 225. Effective date.
TITLE I—BANK SECURITIES AC-
TIVITIES AND AFFILIATIONS
WITH SECURITIES FIRMS AND
OTHER 
FINANCIAL 
COMPA-
NIES
Subtitle A—Securities Activities
SEC. 101. ANTI-AFFILIATION PROVISION OF THE BANKING
ACT OF 1933 REPEALED.
(a) SECTION 20 REPEALED.—Section 20 (12 U.S.C.
377) of the Banking Act of 1933 (commonly referred to as
the ‘‘Glass-Steagall Act’’) is repealed.
(b) CONFORMING AMENDMENT TO SECTION 32.—Sec-
tion 32 (12 U.S.C. 78) of the Banking Act of 1933 is
amended by adding at the end the following sentence: ‘‘This
section shall not apply so as to prohibit an officer, director,
or employee of a securities affiliate (as defined in section
2 of the Financial Services Company Act of 1995) from
serving at the same time as an officer, director, or employee
of a member bank affiliated with that securities affiliate
pursuant to section 10 of such Act. This section shall not
apply so as to prohibit an officer, director, or employee of
an investment company registered under the Investment
Company Act of 1940 or an investment adviser registered
under the Investment Advisers Act of 1940 from serving at
the same time as an officer, director, or employee of a mem-
ber bank.’’.
SEC. 102. FINANCIAL SERVICES HOLDING COMPANIES AU-
THORIZED TO HAVE SECURITIES AFFILIATES.
Section 4(c) of the Bank Holding Company Act of
1956 (12 U.S.C. 1843(c)) is amended—
(1) by striking ‘‘or’’ at the end of paragraph
(13);
(2) by striking the period at the end of para-
graph (14) and inserting ‘‘; or’’; and
(3) by adding after paragraph (14) the following
new paragraph:
‘‘(15) shares of a securities affiliate in accord-
ance with section 10.’’.
SEC. 103. ESTABLISHMENT AND OPERATIONS OF SECURI-
TIES AFFILIATES.
(a) IN GENERAL.—Section 10 of the Bank Holding
Company Act of 1956 (12 U.S.C. 1841 et seq.) is amended
to read as follows:
‘‘SEC. 10. SECURITIES ACTIVITIES.
‘‘(a) ACTIVITIES PERMISSIBLE FOR SECURITIES AF-
FILIATES.—
‘‘(1) IN GENERAL.—A securities affiliate may en-
gage in 1 or more of the following activities:
‘‘(A) Underwrite, deal in, broker, place, or
distribute securities of any type, provide invest-
ment advice regarding securities of any type,
and engage in other securities activities as deter-
mined by the Board.
‘‘(B) Sponsor, organize, control, manage,
and act as investment adviser to an investment
company.
‘‘(C) Engage in, or acquire the shares of a
company engaged in, any activity if—
‘‘(i) a provision of section 4(c) permits
financial services holding companies gen-
erally to engage in that activity or acquire
those shares; and
‘‘(ii) either—
‘‘(I) the Board permits the finan-
cial services holding company to en-
gage in that activity or acquire those
shares through the securities affiliate;
or
‘‘(II) a provision of section 4(c)
permits the financial services holding
company to engage in such activity or
acquire 
such 
shares 
without 
the
Board’s approval.
‘‘(2) FACTOR TO BE CONSIDERED.—In making
determinations pursuant to this section, the Board
shall take into account the need for securities firms
affiliated with banks to be innovative and competi-
tive.
‘‘(b) ACQUIRING INTEREST IN SECURITIES AFFILI-
ATE.—
‘‘(1) NOTICE
REQUIRED.—A financial services
holding company shall not, without complying with
and receiving approval pursuant to the notice proce-
dure in section 4(j)(1), directly or indirectly acquire
or retain more than 5 percent of the voting shares of,
or all or substantially all of the assets of, a securities
affiliate (or a company that would be a securities af-
filiate if the Board permitted the financial services
holding company to acquire that company).
‘‘(2) CRITERIA FOR APPROVAL.—The Board shall
disapprove a notice required under paragraph (1) un-
less the Board determines that the requirements of the
following subparagraphs have been met:
‘‘(A) CAPITAL.—
‘‘(i) DEPOSITORY INSTITUTIONS.—
‘‘(I) The lead depository institu-
tion of the financial services holding
company is well capitalized.
‘‘(II) Well capitalized depository
institutions control at least 80 percent
of the aggregate total risk-weighted as-
sets of depository institutions con-
trolled by the financial services holding
company.
‘‘(III) All depository institutions
controlled by the financial services
holding company are well capitalized
or adequately capitalized.
‘‘(ii) RECENTLY
ACQUIRED
DEPOSI-
TORY
INSTITUTIONS.—Depository institu-
tions acquired by a financial services hold-
ing company during the 12-month period
preceding the submission of a notice under
paragraph (1) may be excluded for purposes
of clause (i)(II) if—
‘‘(I) the financial services holding
company has submitted a plan to the
appropriate Federal banking agency to
restore the capital of the institution
and the plan has been accepted by such
agency; and
‘‘(II) all such institutions that are
excluded for the purposes of clause
(i)(II) represent, in the aggregate, less
than 25 percent of the aggregate total
risk-weighted assets of all depository
institutions controlled by the financial
services holding company.
‘‘(iii) FINANCIAL
SERVICES
HOLDING
COMPANY.—The financial services holding
company is (and immediately after the ac-
quisition of a securities affiliate would con-
tinue to be) adequately capitalized under
the capital standards applicable, if any, to
such financial services holding company.
‘‘(iv) FOREIGN
BANKS
AND
COMPA-
NIES.—For purposes of applying this sub-
section and other provisions of this section,
the Board shall establish and apply com-
parable capital standards for the acquisi-
tion, retention, and operation of a securities
affiliate in the United States by a foreign
bank that operates a branch or agency or
owns or controls a bank or commercial
lending company in the United States, and
any company that owns or controls such a
foreign bank, giving due regard to the prin-
ciple of national treatment and equality of
competitive opportunity.
‘‘(B) ALTERNATIVE
CAPITAL
TREATMENT
FOR
WELL
CAPITALIZED
FINANCIAL
SERVICES
HOLDING COMPANIES.—
‘‘(i) IN GENERAL.—A financial services
holding company and the depository insti-
tution subsidiaries of such company shall be
deemed to have met the capital requirements
set forth in subparagraph (A) if—
‘‘(I) the holding company files a
written notice with the Board of such
company’s election to meet such capital
requirements in the manner provided
in this subparagraph;
‘‘(II) all depository institutions
controlled by the financial services
holding company are at least ade-
quately capitalized; and
‘‘(III) the financial services hold-
ing company is (and immediately after
the acquisition of a securities affiliate
would continue to be) well capitalized.
‘‘(ii) LOSSES INCURRED BY FDIC.—A
financial services holding company which
makes an election under clause (i) in con-
nection with the acquisition of control of
any securities affiliate shall be liable for
any loss incurred by the Federal Deposit
Insurance Corporation, or any loss which
the Federal Deposit Insurance Corporation
reasonably anticipates incurring in connec-
tion with—
‘‘(I) the default of any insured de-
pository institution controlled by the
financial services holding company; or
‘‘(II) any assistance provided by
the Corporation to any insured deposi-
tory institution in danger of default
that is controlled by the financial serv-
ices holding company.
‘‘(C) MANAGERIAL RESOURCES.—
‘‘(i) IN GENERAL.—The financial serv-
ices holding company and each depository
institution subsidiary of such company—
‘‘(I) are well managed; and
‘‘(II) were well managed during
the 12-month period preceding the ac-
quisition of a securities affiliate (but
for purposes of this subparagraph the
Board may disregard any depository
institution acquired by the financial
services holding company during that
period).
‘‘(ii) SECURITIES ACTIVITIES.—The fi-
nancial services holding company has the
managerial resources to conduct the pro-
posed securities activities safely and sound-
ly.
‘‘(D) INTERNAL CONTROLS.—The financial
services holding company has established ade-
quate policies and procedures to manage finan-
cial and operational risks, to provide reasonable
assurance of compliance with this section and
other applicable laws, and to provide reasonable
assurance of maintenance of corporate separate-
ness within the financial services holding com-
pany.
‘‘(E) NO DETRIMENTAL EFFECT ON FINAN-
CIAL SERVICES HOLDING COMPANY OR ITS SUB-
SIDIARY DEPOSITORY INSTITUTIONS.—The acqui-
sition of a securities affiliate would not adversely
affect the safety and soundness of—
‘‘(i) the financial services holding com-
pany; or
‘‘(ii) any depository institution sub-
sidiary of the financial services holding
company.
‘‘(F) CONCENTRATION OF RESOURCES.—The
acquisition of a securities affiliate would not re-
sult in an undue concentration of resources in
the financial services business.
‘‘(G) 
RESPONSIVENESS
TO
COMMUNITY
NEEDS.—The lead insured depository institution
subsidiary of the financial services holding com-
pany and insured depository institutions con-
trolling at least 80 percent of the aggregate total
risk-weighted assets of insured depository institu-
tions controlled by the financial services holding
company have achieved a ‘satisfactory record of
meeting community credit needs’, or better, dur-
ing the most recent examination of such insured
depository institutions.
‘‘(3) LIMITED
NOTICE
PROCEDURES
FOR
PRO-
POSALS BY WELL CAPITALIZED AND WELL MANAGED
COMPANIES TO ACQUIRE ADDITIONAL SECURITIES AF-
FILIATES.—A financial services holding company
may, without providing the notice required under
paragraph (1), directly or indirectly acquire the
shares or substantially all of the assets of any com-
pany that is engaged in activities described in sub-
paragraph (A) or (B) of subsection (a)(1), if—
‘‘(A) the financial services holding company
previously received the Board’s approval under
paragraph (1) to control a securities affiliate
and continues to control the securities affiliate
pursuant to that approval;
‘‘(B) the acquisition proposal qualifies
under section 4(j)(4);
‘‘(C) the financial services holding company
provides the written notification required in sec-
tion 4(j)(5); and
‘‘(D) the acquisition would not result in an
undue concentration of resources in the financial
services business.
‘‘(c) ADDITIONAL INVESTMENT IN SECURITIES AFFILI-
ATE.—
‘‘(1) PRIOR
NOTICE
REQUIRED.—A financial
services holding company that has acquired control of
a securities affiliate under this section shall not, di-
rectly or indirectly, make any additional investment
in the securities affiliate that is considered capital for
purposes of any capital requirement imposed on the
securities affiliate under the Securities Exchange Act
of 1934 (other than an extension of credit under a re-
volving credit agreement approved by the Board), un-
less the financial services holding company gives the
Board prior written notice of the proposed investment
and the Board—
‘‘(A) issues a written statement of the
Board’s intent not to disapprove the notice; or
‘‘(B) does not disapprove the notice within
30 days after the notice is filed.
‘‘(2) NO PRIOR NOTICE REQUIRED FOR CERTAIN
FINANCIAL SERVICES HOLDING COMPANIES.—
‘‘(A) IN
GENERAL.—A financial services
holding company shall not be required to provide
prior notice under paragraph (1) if after making
any investment described in paragraph (1)—
‘‘(i) the financial services holding com-
pany would be adequately capitalized under
the capital standards applicable, if any, to
such financial services holding company
and each of the financial services holding
company’s subsidiary depository institu-
tions would be well capitalized; and
‘‘(ii) the financial services holding
company and each of its subsidiary deposi-
tory institutions are well managed (but for
purposes of this clause the Board may dis-
regard any depository institution acquired
by the financial services holding company
during the previous 12-month period).
‘‘(B) SUBSEQUENT
NOTICE.—A financial
services holding company that makes an invest-
ment pursuant to subparagraph (A) shall pro-
vide written notice to the Board of the additional
investment within 10 days after making the in-
vestment.
‘‘(3) CRITERIA FOR DISAPPROVING NOTICE.—The
Board may disapprove a notice filed under para-
graph (1) if—
‘‘(A) any depository institution affiliate of
the securities affiliate is undercapitalized; or
‘‘(B) the Board determines that the finan-
cial 
services 
holding 
company 
would 
be
undercapitalized under the capital standards ap-
plicable, if any, to such financial services hold-
ing company after making the investment or
that the investment would otherwise be unsafe or
unsound.
‘‘(4) EMERGENCY
APPROVAL.—Notwithstanding
any provision of this subsection, in the event of ad-
verse market conditions, or concerns regarding the fi-
nancial or operational condition of the securities af-
filiate, the Board may approve any additional invest-
ment in the securities affiliate on an emergency basis
if such additional investment does not adversely affect
the safety and soundness of all insured depository in-
stitution affiliates of such securities affiliate and does
not diminish the ability of the financial services hold-
ing company to maintain an appropriate amount of
capital in all such insured depository institutions.
‘‘(d) PROVISIONS APPLICABLE IF AFFILIATED DEPOSI-
TORY INSTITUTION CEASES TO BE WELL CAPITALIZED.—
‘‘(1) HOLDING COMPANY ACTION REQUIRED IF
AFFILIATED INSTITUTIONS ARE NOT WELL CAPITAL-
IZED.—
‘‘(A) APPLICABILITY.—This paragraph shall
apply if—
‘‘(i) the lead depository institution of
the financial services holding company is
not well capitalized, or
‘‘(ii) well capitalized depository insti-
tutions do not control at least 80 percent of
the aggregate total risk-weighted assets of
depository institutions affiliated with the
securities affiliate.
‘‘(B) 
CAPITAL
MAINTENANCE
AGREE-
MENT.—Within 30 days after subparagraph (A)
becomes applicable with respect to any financial
services holding company, such company shall
execute an agreement with the Board—
‘‘(i) to meet the capital requirements of
subparagraph (A) within a reasonable pe-
riod of time; or
‘‘(ii) to divest control of the depository
institution in an orderly manner within
180 days, or within such additional period
of time as the Board may determine is rea-
sonably required in order to effect such di-
vestiture.
‘‘(C) RESTRICTIONS
ON
CERTAIN
SECURI-
TIES ACTIVITIES.—If a financial services holding
company fails to meet the requirements of, or
comply with the agreement executed pursuant to,
subparagraph (B), a securities affiliate of such
financial services holding company shall not, be-
ginning 180 days after subparagraph (A) be-
comes applicable with respect to such company,
agree to underwrite or deal in, any securities
other than—
‘‘(i) securities expressly authorized by
section 5136 of the Revised Statutes of the
United States as permissible for a national
bank to underwrite or deal in;
‘‘(ii) securities backed by or represent-
ing interests in notes, drafts, acceptances,
loans, leases, receivables, other obligations,
or pools of any such obligations; or
‘‘(iii) securities issued by an open-end
investment company registered under the
Investment Company Act of 1940.
‘‘(D) EXCEPTION.—The Board may permit
the securities affiliate of a financial services
holding company described in subparagraph (C)
to underwrite or deal in securities not described
in clauses (i) through (iii) of such subparagraph
for a period of 1 year from the date on which
subparagraph (A) first becomes applicable with
respect to such company, if—
‘‘(i) the financial services holding com-
pany submits a capital restoration plan to
the Board specifying the steps the financial
services holding company will take to meet
the requirements of subsection (b)(2)(A),
and containing such other information as
the Board may require; and
‘‘(ii) the Board approves the plan.
‘‘(E) EXTENSION OF PERIOD.—
‘‘(i) IN GENERAL.—Upon application
by a financial services holding company,
the Board may extend, for not more than 1
year at a time, the period provided in sub-
paragraph (C).
‘‘(ii) MAXIMUM EXTENSION.—No exten-
sion under clause (i) of the period provided
in subparagraph (C) shall, in the aggregate,
exceed 2 years.
‘‘(2) DIVESTITURE OF SECURITIES AFFILIATE.—
‘‘(A) IN
GENERAL.—A financial services
holding company shall divest itself of the securi-
ties affiliate if any of the financial services hold-
ing company’s subsidiary depository institutions
has been undercapitalized for more than 6
months.
‘‘(B) EXTENDING TIME.—The Board may
provide additional time, not exceeding 18
months, for a divestiture under subparagraph
(A) if—
‘‘(i) the appropriate Federal banking
agency or, in the case of a foreign bank or
company that owns or controls a foreign
bank, 
the 
Board, 
has 
approved 
the
undercapitalized institution’s capital res-
toration plan; and
‘‘(ii) the Board determines that the se-
curities affiliate poses no significant risk to
any affiliated depository institution.
‘‘(e) SECURITIES AFFILIATE EXCLUDED IN DETER-
MINING WHETHER FINANCIAL SERVICES HOLDING COM-
PANY IS ADEQUATELY CAPITALIZED.—
‘‘(1) IN GENERAL.—In determining whether a fi-
nancial services holding company is adequately cap-
italized—
‘‘(A) the financial services holding compa-
ny’s capital and total assets shall each be re-
duced by—
‘‘(i) an amount equal to the amount of
the financial services holding company’s eq-
uity investment in any securities affiliate;
and
‘‘(ii) an amount equal to the amount
of any extensions of credit by the financial
services holding company to any securities
affiliate that are considered capital for pur-
poses of any capital requirement imposed
on the securities affiliate under section
15(c)(3) of the Securities Exchange Act of
1934; and
‘‘(B) the securities affiliate’s assets and li-
abilities shall not be consolidated with those of
the financial services holding company.
‘‘(2) EXCEPTION
FOR
NONSECURITIES
ACTIVI-
TIES.—Paragraph (1) shall not apply to the extent
that the Board determines by regulation or order
that—
‘‘(A) an item described in such paragraph
relates to activities which are not described in
subparagraph (A) or (B) of subsection (a)(1); or
‘‘(B) another method of adjusting capital is
more appropriate to ensure the safety and sound-
ness of depository institutions.
‘‘(f) SAFEGUARDS.—Each financial services holding
company and each subsidiary of any such company shall
comply with all applicable safeguard requirements of sec-
tion 11.
‘‘(g) ACTIVITIES NOT PERMISSIBLE FOR DEPOSITORY
INSTITUTIONS.—
‘‘(1) IN GENERAL.—A financial services holding
company that acquires control of a securities affiliate
shall not, after the end of the 1-year period beginning
on the date of such acquisition, permit any depository
institution, or any subsidiary of any depository insti-
tution, which is controlled by such holding com-
pany—
‘‘(A) to engage, directly or indirectly, in the
United States—
‘‘(i) in underwriting securities backed
by or representing interests in notes, drafts,
acceptances, loans, leases, receivables, other
obligations, or pools of any such obligations
originated or purchased by the institution
or its affiliates, other than—
‘‘(I) securities backed by or rep-
resenting an interest in 1—4 family
residential mortgages originated or
purchased by the depository institution
or any affiliate or subsidiary of the in-
stitution; or
‘‘(II) securities backed by or rep-
resenting an interest in consumer re-
ceivables or consumer leases originated
or purchased by the depository institu-
tion or any affiliate or subsidiary of
the institution; or
‘‘(ii) in underwriting or dealing in
any other securities, except securities ex-
‘‘(10) INVESTMENT COMPANIES NOT AFFILIATED
WITH A DEPOSITORY INSTITUTION.—The appropriate
Federal banking agency shall not have authority
under this Act or any other provision of law to in-
spect or examine any investment company registered
under the Federal securities laws that is not—
‘‘(A) affiliated with a depository institu-
tion; or
‘‘(B) advised by an investment adviser af-
filiated with a depository institution or by a
separately identifiable department or division of
a depository institution that is a registered in-
vestment adviser.
‘‘(11) DEFINITION.—For purposes of this sub-
section, the term ‘Federal securities laws’ means the
provisions of Federal law governing securities activi-
ties that are within the jurisdiction of the Securities
and Exchange Commission under the Securities Act
of 1933, the Securities Exchange Act of 1934, the In-
vestment Company Act of 1940, the Investment Advis-
ers Act of 1940, and the Trust Indenture Act of 1939.
‘‘(n) FOREIGN BANK FIREWALLS.—
‘‘(1) IN GENERAL.—A foreign bank that operates
a branch, agency, or commercial lending company in
the United States and accepts no deposits in the