I 
110TH CONGRESS 
1ST SESSION 
H. R. 698 
To amend the Federal Deposit Insurance Act to establish industrial bank 
holding company regulation, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 29, 2007 
Mr. GILLMOR (for himself, Mr. FRANK of Massachusetts, Mrs. MALONEY of 
New York, Mr. SCHIFF, Mrs. JONES of Ohio, Mr. DOYLE, Mr. GUTIER-
REZ, Ms. WATSON, Mr. SMITH of New Jersey, Mrs. MUSGRAVE, Mr. 
GEORGE MILLER of California, Mr. GOODE, Mr. ALEXANDER, Mr. FARR, 
Mr. GRIJALVA, Mr. HOLDEN, Mr. FORTENBERRY, Mr. LAHOOD, Mr. 
SALAZAR, Mr. MCGOVERN, Mr. AL GREEN of Texas, Mr. PRICE of North 
Carolina, Mr. PETERSON of Minnesota, Ms. FALLIN, Ms. CASTOR, Mr. 
UDALL of Colorado, Mr. CHANDLER, Mr. LAMBORN, Ms. CARSON, Mr. 
HODES, and Ms. SCHAKOWSKY) introduced the following bill; which was 
referred to the Committee on Financial Services 
A BILL 
To amend the Federal Deposit Insurance Act to establish 
industrial bank holding company regulation, 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 ‘‘Industrial Bank Hold-
ing Company Act of 2007’’. 
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surance Act (12 U.S.C. 1811 et seq.) is amended by add-
ing at the end the following new section: 
‘‘SEC. 51. INDUSTRIAL BANK HOLDING COMPANY REGULA-
TION. 
‘‘(a) REGISTRATION.— 
‘‘(1) IN GENERAL.—Within 90 days after be-
coming an industrial bank holding company, each in-
dustrial bank holding company shall register with 
the Corporation on forms prescribed by the Corpora-
tion. 
‘‘(2) INFORMATION
TO
BE
INCLUDED.—Each 
registration submitted under paragraph (1) shall in-
clude such information, under oath, with respect to 
the financial condition, ownership, operations, man-
agement, and intercompany relationships of the in-
dustrial bank holding company and subsidiaries of 
such holding company, and other factors (including 
information described in subsection (b)(1)(C)), as 
the Corporation may determine to be appropriate to 
carry out the purposes of this section. 
‘‘(3) EXTENSION
OF
TIME
FOR
SUBMITTING 
COMPLETE INFORMATION.—Upon application by an 
industrial bank holding company and subject to such 
requirements, factors, and evidence as the Corpora-
tion may require, the Corporation may extend the 
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period described in paragraph (1) within which such 
company shall register and file the requisite infor-
mation. 
‘‘(4) APPLICATION TO PRIOR HOLDING COMPA-
NIES.—In the case of any company that becomes an 
industrial bank holding company by virtue of the en-
actment of the Industrial Bank Holding Company 
Act of 2007, the 90-day period referred to in para-
graph (1) shall begin on the date of the enactment 
of such Act. 
‘‘(b) REPORTS AND EXAMINATIONS.— 
‘‘(1) REPORTS.— 
‘‘(A) REPORTS
REQUIRED.—Each indus-
trial bank holding company and each subsidiary 
of an industrial bank holding company, other 
than an industrial bank, shall file with the Cor-
poration such reports as may be required by the 
Corporation. 
‘‘(B) FORM AND MANNER.—Reports filed 
under subparagraph (A) shall be made under 
oath and shall be in such form and for such pe-
riods, as the Corporation may prescribe. 
‘‘(C) INFORMATION.—Each report filed 
under subparagraph (A) shall contain such in-
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formation as the Corporation may require con-
cerning— 
‘‘(i) the operations of the industrial 
bank holding company and its subsidiaries; 
‘‘(ii) the financial condition of the in-
dustrial bank holding company and such 
subsidiaries, together with information on 
systems maintained within the holding 
company for monitoring and controlling fi-
nancial and operating risks, and trans-
actions with industrial bank subsidiaries of 
the holding company; 
‘‘(iii) compliance by the industrial 
bank holding company and its subsidiaries 
with all applicable Federal and State law; 
and 
‘‘(iv) such other information as the 
Corporation may require. 
‘‘(D) ACCEPTANCE
OF
EXISTING
RE-
PORTS.—For purposes of this paragraph, the 
Corporation may accept reports that an indus-
trial bank holding company or any subsidiary of 
such company has provided or has been re-
quired to provide to any other Federal or State 
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supervisor or to any appropriate self-regulatory 
organization. 
‘‘(2) EXAMINATIONS.— 
‘‘(A) IN GENERAL.—Each industrial bank 
holding company and each subsidiary of each 
such holding company (other than an industrial 
bank) shall be subject to such examinations by 
the Corporation as the Corporation may pre-
scribe for purposes of this section. 
‘‘(B) FURNISHING
REPORTS
TO
OTHER 
AGENCIES.—Examination and other reports 
made or received under this section may be fur-
nished by the Corporation to any other Federal 
agency or any appropriate State bank super-
visor. 
‘‘(C) USE
OF
REPORTS
FROM
OTHER 
AGENCIES.—The Corporation may use, for the 
purposes of this subsection, reports of examina-
tion made by any other Federal agency or any 
appropriate State bank supervisor with respect 
to any industrial bank holding company or sub-
sidiary of any such holding company, to the ex-
tent the Corporation may determine such use to 
be feasible for such purposes. 
‘‘(c) LIMITATION ON CONTROL.— 
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‘‘(1) IN GENERAL.—Except as provided in para-
graph (3) or (4), no industrial bank may be con-
trolled, directly or indirectly, by a commercial firm. 
‘‘(2) COMMERCIAL FIRM DEFINED.—For pur-
poses of this section, the term ‘commercial firm’ 
means any entity at least 15 percent of the annual 
gross revenues of which on a consolidated basis, in-
cluding all affiliates of the entity, were derived from 
engaging, on an on-going basis, in activities that are 
not financial in nature or incidental to a financial 
activity during at least 3 of the prior 4 calendar 
quarters, as determined by the Corporation in ac-
cordance with regulations which the Corporation 
shall prescribe. 
‘‘(3) PRE-2003 EXCLUSIONS.— 
‘‘(A) GRANDFATHERED
INSTITUTIONS.— 
Paragraph (1) shall not apply with respect to 
any industrial bank— 
‘‘(i) which became an insured deposi-
tory institution before October 1, 2003, or 
pursuant to an application for deposit in-
surance which was approved by the Cor-
poration before such date; and 
‘‘(ii) with respect to which there is no 
change in control, directly or indirectly, of 
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the bank after September 30, 2003, that 
requires a registration under this section 
or an application under section 7(j) or 
18(c), section 3 of the Bank Holding Com-
pany Act of 1956, or section 10 of the 
Home Owners’ Loan Act. 
‘‘(B) CORPORATE REORGANIZATIONS PER-
MITTED.—The acquisition of direct or indirect 
control of the industrial bank referred to in 
subparagraph (A)(ii) shall not be treated as a 
‘change in control’ for purposes of such sub-
paragraph if the company acquiring control is 
itself directly or indirectly controlled by a com-
pany that was an affiliate of such bank on the 
date referred to in such paragraph, and re-
mains an affiliate at all times after such date. 
‘‘(4) PRE-2007 EXCLUSIONS.— 
‘‘(A) 
GRANDFATHERED
COMMERCIAL 
FIRMS.—Paragraph (1) shall not apply to any 
commercial firm— 
‘‘(i) which became an industrial bank 
holding company by virtue of acquiring 
control of an industrial bank on or after 
October 1, 2003, and before January 29, 
2007; 
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