I 
115TH CONGRESS 
1ST SESSION H. R. 2585 
To reduce risks to the financial system by limiting banks’ ability to engage 
in certain risky activities and limiting conflicts of interest, to reinstate 
certain Glass-Steagall Act protections that were repealed by the Gramm- 
Leach-Bliley Act, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 22, 2017 
Mr. CAPUANO (for himself, Mr. JONES, Mr. ELLISON, Mr. GENE GREEN of 
Texas, Mr. TONKO, Ms. NORTON, Mr. CONYERS, and Mr. MCGOVERN) 
introduced the following bill; which was referred to the Committee on Fi-
nancial Services, and in addition to the Committee on the Judiciary, for 
a period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the com-
mittee concerned 
A BILL 
To reduce risks to the financial system by limiting banks’ 
ability to engage in certain risky activities and limiting 
conflicts of interest, to reinstate certain Glass-Steagall 
Act protections that were repealed by the Gramm-Leach- 
Bliley Act, and for other purposes. 
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 ‘‘21st Century Glass- 
Steagall Act of 2017’’. 
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SEC. 2. FINDINGS AND PURPOSE. 
(a) FINDINGS.—Congress finds that— 
(1) in response to a financial crisis and the en-
suing Great Depression, Congress enacted the Bank-
ing Act of 1933, known as the ‘‘Glass-Steagall Act’’, 
to prohibit commercial banks from offering invest-
ment banking and insurance services; 
(2) a series of deregulatory decisions by the 
Board of Governors of the Federal Reserve System 
and the Office of the Comptroller of the Currency, 
in addition to decisions by Federal courts, permitted 
commercial banks to engage in an increasing num-
ber of risky financial activities that had previously 
been restricted under the Glass-Steagall Act, and 
also vastly expanded the meaning of the ‘‘business of 
banking’’ and ‘‘closely related activities’’ in banking 
law; 
(3) in 1999, Congress enacted the ‘‘Gramm- 
Leach-Bliley Act’’, which repealed the Glass-Steagall 
Act separation between commercial and investment 
banking and allowed for complex cross-subsidies and 
interconnections between commercial and investment 
banks; 
(4) former Kansas City Federal Reserve Presi-
dent Thomas Hoenig observed that ‘‘with the elimi-
nation of Glass-Steagall, the largest institutions with 
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the greatest ability to leverage their balance sheets 
increased their risk profile by getting into trading, 
market making, and hedge fund activities, adding 
ever greater complexity to their balance sheets.’’; 
(5) the Financial Crisis Inquiry Report issued 
by the Financial Crisis Inquiry Commission con-
cluded that, in the years between the passage of the 
Gramm-Leach Bliley Act and the global financial 
crisis, ‘‘regulation and supervision of traditional 
banking had been weakened significantly, allowing 
commercial banks and thrifts to operate with fewer 
constraints and to engage in a wider range of finan-
cial activities, including activities in the shadow 
banking system.’’ The Commission also concluded 
that ‘‘[t]his deregulation made the financial system 
especially vulnerable to the financial crisis and exac-
erbated its effects.’’; 
(6) a report by the Financial Stability Over-
sight Council pursuant to section 123 of the Dodd- 
Frank Wall Street Reform and Consumer Protection 
Act (12 U.S.C. 5333) states that increased com-
plexity and diversity of financial activities at finan-
cial institutions may ‘‘shift institutions towards more 
risk-taking, increase the level of interconnectedness 
among financial firms, and therefore may increase 
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systemic default risk. These potential costs may be 
exacerbated in cases where the market perceives di-
verse and complex financial institutions as ‘too big 
to fail,’ which may lead to excessive risk taking and 
concerns about moral hazard.’’; 
(7) the Senate Permanent Subcommittee on In-
vestigations report, ‘‘Wall Street and the Financial 
Crisis: Anatomy of a Financial Collapse’’, states that 
repeal of the Glass-Steagall Act ‘‘made it more dif-
ficult for regulators to distinguish between activities 
intended to benefit customers versus the financial in-
stitution itself. The expanded set of financial serv-
ices investment banks were allowed to offer also con-
tributed to the multiple and significant conflicts of 
interest that arose between some investment banks 
and their clients during the financial crisis.’’; 
(8) the Senate Permanent Subcommittee on In-
vestigations 
report, 
‘‘JPMorgan 
Chase 
Whale 
Trades: A Case History of Derivatives Risks and 
Abuses’’, describes how traders at JPMorgan Chase 
made risky bets using excess deposits that were 
partly insured by the Federal Government; 
(9) in Europe, the Vickers Independent Com-
mission on Banking (for the United Kingdom) and 
the Liikanen Report (for the Euro area) have both 
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found that there is no inherent reason to bundle ‘‘re-
tail banking’’ with ‘‘investment banking’’ or other 
forms of relatively high risk securities trading, and 
European countries are set on a path of separating 
various activities that are currently bundled together 
in the business of banking; 
(10) private sector actors prefer having access 
to underpriced public sector insurance, whether ex-
plicit (for insured deposits) or implicit (for ‘‘too big 
to fail’’ financial institutions), to subsidize dan-
gerous levels of risk-taking, which, from a broader 
social perspective, is not an advantageous arrange-
ment; and 
(11) the financial crisis, and the regulatory re-
sponse to the crisis, has led to more mergers be-
tween financial institutions, creating greater finan-
cial sector consolidation and increasing the domi-
nance of a few large, complex financial institutions 
that are generally considered to be ‘‘too big to fail’’, 
and therefore are perceived by the markets as hav-
ing an implicit guarantee from the Federal Govern-
ment to bail them out in the event of their failure. 
(b) PURPOSES.—The purposes of this Act are— 
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(1) to reduce risks to the financial system by 
limiting the ability of banks to engage in activities 
other than socially valuable core banking activities; 
(2) to protect taxpayers and reduce moral haz-
ard by removing explicit and implicit government 
guarantees for high-risk activities outside of the core 
business of banking; and 
(3) to eliminate any conflict of interest that 
arises from banks engaging in activities from which 
their profits are earned at the expense of their cus-
tomers or clients. 
SEC. 3. DEFINITIONS. 
In this Act— 
(1) the term ‘‘bank holding company’’ has the 
meaning given the term in section 2 of the Bank 
Holding Company Act of 1956 (12 U.S.C. 1841); 
and 
(2) the terms ‘‘insurance company’’, ‘‘insured 
depository institution’’, ‘‘securities entity’’, and 
‘‘swaps entity’’ have the meanings given those terms 
in section 18(s)(6)(D) of the Federal Deposit Insur-
ance Act, as added by section 4(a) of this Act. 
SEC. 4. SAFE AND SOUND BANKING. 
(a) COVERED
INSURED
DEPOSITORY
INSTITU-
TIONS.—Section 18(s) of the Federal Deposit Insurance 
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Act (12 U.S.C. 1828(s)) is amended by adding at the end 
the following: 
‘‘(6) 
LIMITATIONS
ON
BANKING
AFFILI-
ATIONS.— 
‘‘(A) PROHIBITION ON AFFILIATIONS WITH 
NONDEPOSITORY ENTITIES.—A covered insured 
depository institution may not— 
‘‘(i) be or become an affiliate of any 
insurance company, securities entity, or 
swaps entity; 
‘‘(ii) be in common ownership or con-
trol with any insurance company, securities 
entity, or swaps entity; or 
‘‘(iii) engage in any activity that 
would cause the covered insured depository 
institution to qualify as an insurance com-
pany, securities entity, or swaps entity. 
‘‘(B) INDIVIDUALS ELIGIBLE TO SERVE ON 
BOARDS OF DEPOSITORY INSTITUTIONS.— 
‘‘(i) IN GENERAL.—An individual who 
is an officer, director, partner, or employee 
of any securities entity, insurance com-
pany, or swaps entity may not serve at the 
same time as an officer, director, employee, 
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or other institution-affiliated party of any 
covered insured depository institution. 
‘‘(ii) EXCEPTION.—Clause (i) shall 
not apply with respect to service by any in-
dividual which is otherwise prohibited 
under clause (i), if the appropriate Federal 
banking agency determines, by regulation 
with respect to a limited number of cases, 
that service by such an individual as an of-
ficer, director, employee, or other institu-
tion-affiliated party of a covered insured 
depository institution would not unduly in-
fluence— 
‘‘(I) the investment policies of 
the institution; or 
‘‘(II) the advice that the institu-
tion provides to customers. 
‘‘(iii) TERMINATION
OF
SERVICE.— 
Unless the appropriate Federal banking 
agency makes a determination under 
clause (ii), an individual described in 
clause (i) who, as of the date of enactment 
of this paragraph, is serving as an officer, 
director, employee, or other institution-af-
filiated party of any covered insured depos-
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itory institution shall terminate such serv-
ice as soon as is practicable after such date 
of enactment, and in no event later than 
the end of the 60-day period beginning on 
that date of enactment. 
‘‘(C) TERMINATION OF EXISTING AFFILI-
ATIONS AND ACTIVITIES.— 
‘‘(i) ORDERLY TERMINATION OF EX-
ISTING
AFFILIATIONS
AND
ACTIVITIES.— 
Any affiliation, common ownership or con-
trol, or activity of a covered insured depos-
itory institution with any securities entity, 
insurance company, swaps entity, or any 
other person, as of the date of enactment 
of this paragraph, which is prohibited 
under subparagraph (A) shall be termi-
nated as soon as is practicable, and in no 
event later than the end of the 5-year pe-
riod beginning on that date of enactment. 
‘‘(ii) EARLY TERMINATION.—The ap-
propriate Federal banking agency, at any 
time after opportunity for hearing, may 
order termination of an affiliation, common 
ownership or control, or activity prohibited 
by clause (i) before the end of the 5-year 
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period described in clause (i), if the agency 
determines that such action— 
‘‘(I) is necessary to prevent 
undue concentration of resources, de-
creased or unfair competition, con-
flicts of interest, or unsound banking 
practices; and 
‘‘(II) is in the public interest. 
‘‘(iii) EXTENSION.—An appropriate 
Federal banking agency may extend the 5- 
year period described in clause (i) upon the 
request of a covered insured depository in-
stitution described in clause (i) for a pe-
riod of not more than 6 months for each 
request received, if— 
‘‘(I) 
the 
appropriate 
Federal 
banking agency certifies that an ex-
tension would promote the public in-
terest and would not pose a signifi-
cant threat to the stability of the 
banking system or financial markets 
in the United States; and 
‘‘(II) any extensions granted 
under this clause, in the aggregate, do 
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not exceed 1 year for any particular 
covered insured depository institution. 
‘‘(iv) REQUIREMENTS
FOR
ENTITIES 
RECEIVING AN EXTENSION.—Upon receipt 
of each extension under clause (iii), the 
covered insured depository institution shall 
notify shareholders of the covered insured 
depository institution and the general pub-
lic that it failed to comply with the re-
quirements of clause (i). 
‘‘(D) DEFINITIONS.—For purposes of this 
paragraph, the following definitions shall apply: 
‘‘(i) COVERED INSURED DEPOSITORY 
INSTITUTION.—The term ‘covered insured 
depository institution’— 
‘‘(I) has the meaning given the 
term in section 3(c)(2); and 
‘‘(II) does not include a savings 
association controlled by a savings 
and loan holding company, as de-
scribed in section 10(c)(9)(C) of the 
Home Owners’ Loan Act (12 U.S.C. 
1467a(c)(9)(C)). 
‘‘(ii) 
INSURANCE
COMPANY.—The 
term ‘insurance company’ has the meaning 
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given the term in section 2(q) of the Bank 
Holding Company Act of 1956 (12 U.S.C. 
1841(q)). 
‘‘(iii) SECURITIES ENTITY.—The term 
‘securities entity’— 
‘‘(I) includes any entity engaged 
in— 
‘‘(aa) the issuance, flotation, 
underwriting, public sale, or dis-
tribution of stocks, bonds, deben-
tures, notes, or other securities; 
‘‘(bb) market making; 
‘‘(cc) activities of a broker 
or dealer, as those terms are de-
fined in section 3(a) of the Secu-
rities Exchange Act of 1934 (15 
U.S.C. 78c(a)); 
‘‘(dd) activities of a futures 
commission merchant; 
‘‘(ee) activities of an invest-
ment adviser or investment com-
pany, as those terms are defined 
in section 202(a) of the Invest-
ment Advisers Act of 1940 (15 
U.S.C. 80b–2(a)) and section 
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3(a)(1) of the Investment Com-
pany Act of 1940 (15 U.S.C. 
80a–3(a)(1)), respectively; or 
‘‘(ff) hedge fund or private 
equity investments in the securi-
ties of either privately or publicly 
held companies; and 
‘‘(II) does not include an entity 
that, pursuant to its authorized trust 
and fiduciary activities— 
‘‘(aa) purchases and sells in-
vestments for the account of its 
customers; or 
‘‘(bb) provides financial or 
investment advice to its cus-
tomers. 
‘‘(iv) 
SWAPS
ENTITY.—The 
term 
‘swaps entity’ means any swap dealer, se-
curity-based swap dealer, major swap par-
ticipant, or major security-based swap par-
ticipant, that is registered under— 
‘‘(I) the Commodity Exchange 
Act (7 U.S.C. 1 et seq.); or 
‘‘(II) the Securities Exchange 
Act of 1934 (15 U.S.C. 78a et seq.).’’. 
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(b) LIMITATION ON BANKING ACTIVITIES.—Section 
21 of the Banking Act of 1933 (12 U.S.C. 378) is amend-
ed by adding at the end the following: 
‘‘(c) BUSINESS OF RECEIVING DEPOSITS.—For pur-
poses of this section, the term ‘business of receiving depos-
its’ includes the establishment and maintenance of any 
transaction account (as defined in section 19(b)(1)(C) of 
the Federal Reserve Act (12 U.S.C. 461(b)(1)(C)).’’. 
(c) PERMITTED ACTIVITIES OF NATIONAL BANKS.— 
The paragraph designated as ‘‘Seventh’’ of section 5136 
of the Revised Statutes (12 U.S.C. 24) is amended to read 
as follows: 
‘‘Seventh. PERMITTED
ACTIVITIES.—(A) IN 
GENERAL.—To exercise by its board of directors or 
duly authorized officers or agents, subject to law, all 
such powers as are necessary to carry on the busi-
ness of banking. 
‘‘(B) BUSINESS OF BANKING.—As used in this 
paragraph, the term ‘business of banking’ shall be 
limited to the following core banking services: 
‘‘(i) RECEIVING
DEPOSITS.—A national 
banking association may engage in the business 
of receiving deposits. 
‘‘(ii) EXTENSIONS OF CREDIT.—A national 
banking association may— 
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‘‘(I) extend credit to individuals, busi-
nesses, not for profit organizations, and 
other entities; 
‘‘(II) discount and negotiate promis-
sory notes, drafts, bills of exchange, and 
other evidences of debt; and 
‘‘(III) loan money on personal secu-
rity. 
‘‘(iii) PAYMENT
SYSTEMS.—A national 
banking association may participate in payment 
systems, defined as instruments, banking proce-
dures, and interbank funds transfer systems 
that ensure the circulation of money. 
‘‘(iv) COIN
AND
BULLION.—A national 
banking association may buy, sell, and exchange 
coin and bullion. 
‘‘(v) INVESTMENTS IN SECURITIES.— 
‘‘(I) IN GENERAL.—A national bank-
ing association may invest in investment 
securities, defined as marketable obliga-
tions evidencing indebtedness of any per-
son, copartnership, association, or corpora-
tion in the form of bonds, notes, or deben-
tures (commonly known as ‘investment se-
curities’), obligations of the Federal Gov-
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ernment, or any State or subdivision there-
of, and includes the definition of ‘invest-
ment securities’, as may be jointly pre-
scribed by regulation by— 
‘‘(aa) the Comptroller of the Cur-
rency; 
‘‘(bb) the Federal Deposit Insur-
ance Corporation; and 
‘‘(cc) the Board of Governors of 
the Federal Reserve System. 
‘‘(II) LIMITATIONS.—The business of 
dealing in securities and stock by a na-
tional banking association shall be limited 
to— 
‘‘(aa) purchasing and selling such 
securities and stock without recourse, 
solely upon the order, and for the ac-
count of, customers, and in no case 
for its own account, and the national 
banking association shall not under-
write any issue of securities or stock; 
and 
‘‘(bb) purchasing for its own ac-
count investment securities under 
such limitations and restrictions as 
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the Comptroller of the Currency, the 
Federal Deposit Insurance Corpora-
tion, and the Board of Governors of 
the Federal Reserve System may 
jointly prescribe, by regulation. 
‘‘(III) PROHIBITION ON AMOUNT OF 
INVESTMENT.—In no event shall the total 
amount of the investment securities of any 
single obligor or maker, held by the asso-
ciation for its own account, exceed 10 per-
cent of its capital stock actually paid in 
and unimpaired and 10 percent of its 
unimpaired surplus fund, except that such 
limitation shall not require any association 
to dispose of any securities lawfully held by 
it on August 23, 1935. 
‘‘(C) PROHIBITION AGAINST TRANSACTIONS IN-
VOLVING STRUCTURED OR SYNTHETIC PRODUCTS.— 
A national banking association may not— 
‘‘(i) invest in a structured or synthetic 
product, a financial instrument in which a re-
turn is calculated based on the value of, or by 
reference to the performance of, a security, 
commodity, swap, other asset, or an entity, or 
any index or basket composed of securities, 
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commodities, swaps, other assets, or entities, 
other than customarily determined interest 
rates; or 
‘‘(ii) otherwise engage in the business of 
receiving deposits or extending credit for trans-
actions involving structured or synthetic prod-
ucts.’’. 
(d) PERMITTED ACTIVITIES OF FEDERAL SAVINGS 
ASSOCIATIONS.—Section 5(c)(1) of the Home Owners’ 
Loan Act (12 U.S.C. 1464(c)(1)) is amended— 
(1) by striking subparagraph (Q); and 
(2) 
by 
redesignating 
subparagraphs 
(R) 
through (U) as subparagraphs (Q) through (T), re-
spectively. 
(e) CLOSELY RELATED ACTIVITIES.—Section 4(c) of 
the Bank Holding Company Act of 1956 (12 U.S.C. 
1843(c)) is amended— 
(1) in paragraph (8), by striking ‘‘had been de-
termined’’ and all that follows through the end and 
inserting the following: ‘‘are so closely related to 
banking so as to be a proper incident thereto, as 
provided under this paragraph or any rule or regula-
tion issued by the Board under this paragraph, pro-
vided that for purposes of this paragraph, closely re-
lated shall not be considered to include— 
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‘‘(A) serving as an investment adviser (as 
defined in section 2(a) of the Investment Com-
pany Act of 1940 (15 U.S.C. 80a–2(a)) to an 
investment company registered under that Act, 
including sponsoring, organizing, and managing 
a closed-end investment company; 
‘‘(B) agency transactional services for cus-
tomer investments, except that this subpara-
graph may not be construed as prohibiting pur-
chases and sales of investments for the account 
of customers conducted by a bank (or sub-
sidiary thereof) pursuant to the bank’s trust 
and fiduciary powers; 
‘‘(C) investment transactions as principal, 
except for activities specifically allowed by para-
graph (14); and 
‘‘(D) management consulting and coun-
seling activities;’’; 
(2) in paragraph (13), by striking ‘‘or’’ at the 
end; 
(3) by redesignating paragraph (14) as para-
graph (15); and 
(4) by inserting after paragraph (13) the fol-
lowing: 
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‘‘(14) purchasing, as an end user, any swap, to 
the extent that— 
‘‘(A) the purchase of any such swap occurs 
contemporaneously with the underlying hedged 
item or hedged transaction; 
‘‘(B) there is formal documentation identi-
fying the hedging relationship with particularity 
at the inception of the hedge; and 
‘‘(C) the swap is being used to hedge 
against exposure to— 
‘‘(i) changes in the value of an indi-
vidual recognized asset or liability or an 
identified portion thereof that is attrib-
utable to a particular risk; 
‘‘(ii) changes in interest rates; or 
‘‘(iii) changes in the value of currency; 
or’’. 
(f) PROHIBITED ACTIVITIES.—Section 4(a) of the 
Bank Holding Company Act of 1956 (12 U.S.C. 1843(a)) 
is amended— 
(1) in paragraph (1), by striking ‘‘, or’’ and in-
serting a semicolon; 
(2) in paragraph (2), by striking the ‘‘require-
ments of this Act.’’ and inserting ‘‘requirements of 
this Act; or’’; and 
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(3) by inserting before the undesignated matter 
following paragraph (2) the following: 
‘‘(3) with the exception of the activities per-
mitted under subsection (c), engage in the business 
of a ‘securities entity’ or a ‘swaps entity’, as those 
terms are defined in section 18(s)(6)(D) of the Fed-
eral Deposit Insurance Act, including dealing or 
making markets in securities, repurchase agree-
ments, exchange traded and over-the-counter swaps, 
as defined by the Commodity Futures Trading Com-
mission and the Securities and Exchange Commis-
sion, or structured or synthetic products, as defined 
in the paragraph designated as ‘Seventh’ of section 
5136 of the Revised Statutes of the United States, 
or any other over-the-counter securities, swaps, con-
tracts, or any other agreement that derives its value 
from, or takes on the form of, such securities, de-
rivatives, or contracts; 
‘‘(4) engage in proprietary trading, as provided 
by section 13, or any rule or regulation under that 
section; 
‘‘(5) own, sponsor, or invest in a hedge fund, or 
private equity fund, or any other fund, as provided 
by section 13, or any rule or regulation under that 
section, or any other fund that exhibits the charac-
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teristics of a fund that takes on proprietary trading 
activities or positions; 
‘‘(6) hold ineligible securities or derivatives; 
‘‘(7) engage in market-making; or 
‘‘(8) engage in prime brokerage activities.’’. 
(g) ANTI-EVASION.— 
(1) IN
GENERAL.—Any attempt to structure 
any contract, investment, instrument, or product in 
such a manner that the purpose or effect of such 
contract, investment, instrument, or product is to 
evade or attempt to evade the prohibitions described 
in section 18(s)(6) of the Federal Deposit Insurance 
Act, section 21(c) of the Banking Act of 1933, the 
paragraph designated as ‘‘Seventh’’ of section 5136 
of the Revised Statutes (12 U.S.C. 24), section 
5(c)(1) of the Home Owners’ Loan Act (12 U.S.C. 
1464(c)(1)), or section 4(a) of the Bank Holding 
Company Act of 1956 (12 U.S.C. 1843(a)), as 
added or amended by this section, shall be consid-
ered a violation of the Federal Deposit Insurance 
Act (12 U.S.C. 1811 et seq.), the Banking Act of 
1933 (Public Law 73–66; 48 Stat. 162), section 
5136 of the Revised Statutes (12 U.S.C. 24), the 
Home Owners’ Loan Act (12 U.S.C. 1461 et seq.), 
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and the Bank Holding Company Act of 1956 (12 
U.S.C. 1841 et seq.), as appropriate. 
(2) TERMINATION.— 
(A) IN
GENERAL.—Notwithstanding any 
other provision of law, if a Federal agency has 
reasonable cause to believe that an insured de-
pository institution, securities entity, swaps en-
tity, insurance company, bank holding company, 
or other entity over which that Federal agency 
has regulatory authority has made an invest-
ment or engaged in an activity in a manner 
that functions as an evasion of the prohibitions 
described in paragraph (1) (including through 
an abuse of any permitted activity) or otherwise 
violates such prohibitions, the Federal agency 
shall— 
(i) order, after due notice and oppor-
tunity for hearing, the entity to terminate 
the activity and, as relevant, dispose of the 
investment; 
(ii) order, after the procedures de-
scribed in clause (i), the entity to pay a 
penalty equal to 10 percent of the entity’s 
net profits, averaged over the previous 3 
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lotter on DSKBCFDHB2PROD with BILLS
years, into the Treasury of the United 
States; and 
(iii) initiate proceedings described in 
section 8(e) of the Federal Deposit Insur-
ance Act (12 U.S.C. 1818(e)) for individ-
uals involved in evading the prohibitions 
described in paragraph (1). 
(B) 
CONSTRUCTION.—Nothing 
in 
this 
paragraph shall be construed to limit the inher-
ent authority of any Federal agency or State 
regulatory authority to further restrict any in-
vestments or activities under otherwise applica-
ble provisions of law. 
(3) REPORTING REQUIREMENT.—Not later than 
1 year after the date of enactment of this Act, and 
every year thereafter, each Federal agency having 
regulatory authority over any entity described in 
paragraph (2)(A) shall submit to the Committee on 
Banking, Housing, and Urban Affairs of the Senate 
and the Committee on Financial Services of the 
House of Representatives and make available to the 
public a report, which shall identify— 
(A) the number and character of any ac-
tivities that took place in the preceding year 
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lotter on DSKBCFDHB2PROD with BILLS
that function as an evasion of the prohibitions 
described in paragraph (1); 
(B) the names of the particular entities en-
gaged in those activities; and 
(C) the actions of the Federal agency 
taken under paragraph (2). 
(h) ATTESTATION.—Section 4 of the Bank Holding 
Company Act of 1956 (12 U.S.C. 1843), as amended by 
section 5(a) of this Act, is further amended by adding at 
the end the following: 
‘‘(k) ATTESTATION.—Executives of any bank holding 
company or its affiliate shall attest in writing, under pen-
alty of perjury, that the bank holding company or affiliate 
is not engaged in any activity that is prohibited under sub-
section (a), except to the extent that such activity is per-
mitted under subsection (c).’’. 
SEC. 5. REPEAL OF GRAMM-LEACH-BLILEY ACT PROVI-
SIONS. 
(a) TERMINATION
OF FINANCIAL HOLDING COM-
PANY DESIGNATION.— 
(1) IN GENERAL.—Section 4 of the Bank Hold-
ing Company Act of 1956 (12 U.S.C. 1843) is 
amended by striking subsections (k), (l), (m), (n), 
and (o). 
(2) TRANSITION.— 
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(A) ORDERLY TERMINATION OF EXISTING 
AFFILIATION.—In the case of a bank holding 
company which, pursuant to the amendments 
made by paragraph (1), is no longer authorized 
to control or be affiliated with any entity that 
was permissible for a financial holding company 
on the day before the date of enactment of this 
Act, any affiliation, ownership or control, or ac-
tivity by the bank holding company that is not 
permitted for a bank holding company shall be 
terminated as soon as is practicable, and in no 
event later than the end of the 5-year period 
beginning on the date of enactment of this Act. 
(B) EARLY TERMINATION.—At any time, 
the Board of Governors of the Federal Reserve 
System (in this section referred to as the 
‘‘Board’’), after opportunity for hearing, may 
terminate an affiliation prohibited by subpara-
graph (A) before the end of the 5-year period 
described in subparagraph (A) if the Board de-
termines that such action— 
(i) is necessary to prevent undue con-
centration of resources, decreased or unfair 
competition, conflicts of interest, or un-
sound banking practices; and 
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(ii) is in the public interest. 
(C) EXTENSION.—The Board may extend 
the 5-year period described in subparagraph (A) 
upon the request of a bank holding company 
described in subparagraph (A) for a period of 
not more than 6 months for each request re-
ceived if— 
(i) the Board certifies that an exten-
sion would promote the public interest and 
would not pose a significant risk to the 
stability of the banking system or financial 
markets of the United States; and 
(ii) any extensions granted under this 
subparagraph, in the aggregate, do not ex-
ceed 1 year for any particular bank hold-
ing company. 
(D) REQUIREMENTS
FOR
ENTITIES
RE-
CEIVING AN EXTENSION.—Upon receipt of each 
extension under subparagraph (C), a bank hold-
ing company shall notify the shareholders of the 
bank holding company and the general public 
that the bank holding company has failed to 
comply with the requirements of subparagraph 
(A). 
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(b) FINANCIAL SUBSIDIARIES OF NATIONAL BANKS 
DISALLOWED.— 
(1) IN GENERAL.—Section 5136A of the Re-
vised Statutes (12 U.S.C. 24a) is repealed. 
(2) TRANSITION.— 
(A) ORDERLY TERMINATION OF EXISTING 
AFFILIATION.—In the case of a national bank 
which, pursuant to the amendment made by 
paragraph (1), is no longer authorized to con-
trol or be affiliated with a financial subsidiary 
as of the date of enactment of this Act, such af-
filiation, ownership or control, or activity shall 
be terminated as soon as is practicable, and in 
no event later than the end of the 5-year period 
beginning on the date of enactment of this Act. 
(B) EARLY TERMINATION.—At any time, 
the Comptroller of the Currency (in this section 
referred to as the ‘‘Comptroller’’), after oppor-
tunity for hearing, may terminate an affiliation 
prohibited by subparagraph (A) before the end 
of the 5-year period described in subparagraph 
(A) if the Comptroller determines that such ac-
tion— 
(i) is necessary to prevent undue con-
centration of resources, decreased or unfair 
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competition, conflicts of interest, or un-
sound banking practices; and 
(ii) is in the public interest. 
(C) EXTENSION.—The Comptroller may 
extend the 5-year period described in subpara-
graph (A) upon the request of a national bank 
described in subparagraph (A) for a period of 
not more than 6 months for each request re-
ceived if— 
(i) the Comptroller certifies that an 
extension would promote the public inter-
est and would not pose a significant risk to 
the stability of the banking system or fi-
nancial markets of the United States; and 
(ii) any extensions granted under this 
subparagraph, in the aggregate, do not ex-
ceed 1 year for any particular national 
bank. 
(D) REQUIREMENTS
FOR
ENTITIES
RE-
CEIVING AN EXTENSION.—Upon receipt of each 
extension under subparagraph (C), a national 
bank shall notify the shareholders of the na-
tional bank and the general public that the na-
tional bank has failed to comply with the re-
quirements described in subparagraph (A). 
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(3) CLERICAL AMENDMENT.—The table of sec-
tions for chapter one of title LXII of the Revised 
Statutes is amended by striking the item relating to 
section 5136A. 
(c) REPEAL OF PROVISION RELATING TO FOREIGN 
BANKS FILING AS FINANCIAL HOLDING COMPANIES.— 
Section 8(c) of the International Banking Act of 1978 (12 
U.S.C. 3106(c)) is amended by striking paragraph (3). 
SEC. 6. REPEAL OF BANKRUPTCY PROVISIONS. 
Title 11, United States Code, is amended by repeal-
ing sections 555, 559, 560, and 562. 
SEC. 7. TECHNICAL AND CONFORMING AMENDMENTS. 
(a) BANK HOLDING COMPANY ACT OF 1956.—The 
Bank Holding Company Act of 1956 (12 U.S.C. 1841 et 
seq.) is amended— 
(1) in section 2 (12 U.S.C. 1841)— 
(A) by striking subsection (p); and 
(B) by redesignating subsection (q) as sub-
section (p); and 
(2) in section 5 (12 U.S.C. 1844)— 
(A) in subsection (a), by striking the last 
sentence; 
(B) in subsection (c), by striking para-
graphs (3), (4), and (5); and 
(C) by striking subsection (g). 
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(b) BANK HOLDING COMPANY ACT AMENDMENTS OF 
1970.—Section 106(a) of the Bank Holding Company Act 
Amendments of 1970 (12 U.S.C. 1971(a)) is amended by 
striking the last sentence. 
(c) CLAYTON ACT.—Section 7A(c) of the Clayton Act 
(15 U.S.C. 18a(c)) is amended— 
(1) in paragraph (7), by striking ‘‘, except 
that’’ and all that follows and inserting a semicolon; 
and 
(2) in paragraph (8), by striking ‘‘, except 
that’’ and all that follows and inserting a semicolon. 
(d) COMMODITY EXCHANGE ACT.—The Commodity 
Exchange Act (7 U.S.C. 1 et seq.) is amended— 
(1) in section 1a(21)(G) (7 U.S.C. 1a(21)(G)), 
by striking ‘‘(as defined in section 2 of the Bank 
Holding Company Act of 1956)’’; 
(2) in section 2(c)(2)(B)(i)(II)(dd) (7 U.S.C. 
2(c)(2)(B)(i)(II)(dd)), by striking ‘‘(as defined in 
section 2 of the Bank Holding Company Act of 
1956)’’; and 
(3) in section 2(h)(7)(C)(i)(VIII) (7 U.S.C. 
2(h)(7)(C)(i)(VIII)), by striking ‘‘, as defined in sec-
tion 4(k) of the Bank Holding Company Act of 
1956’’. 
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