the date of such action, and simultaneously sending a copy
of such notice by registered or certified mail to the appro-
priate Federal banking agency. The appropriate Federal
banking agency shall promptly certify and file in such
court the record upon which such action or finding was
based. The actions or findings of the appropriate Federal
banking agency shall be set aside if not supported by sub-
stantial evidence or if found to violate procedures estab-
lished by this Act. An initial finding by the appropriate
Federal banking agency under subsection (j) shall be sub-
ject to judicial review only in the context of review of a
final order under paragraph (2) of subsection (j).
SEC. 102. AMENDMENTS TO THE BANK HOLDING COMPANY
ACT OF 1956.
Section 2(c)(2) of the Bank Holding Company Act
of 1956 (12 U.S.C. 1841(c)(2)) is amended by adding at
the end the following new subparagraph:
‘‘(K) An insured bank, as defined in sec-
tion 3 of the Federal Deposit Insurance Act,
that is controlled by no company other than a
financial services holding company, as defined
in section 101 of the Depository Institution Af-
filiation Act.’’.
SEC. 103. AMENDMENTS TO THE FEDERAL RESERVE ACT.
Section 23A(a)(2) of the Federal Reserve Act (12
U.S.C. 371c(a)(2)) is amended by adding at the end the
following: ‘‘Notwithstanding the foregoing, a loan or ex-
tension of credit shall not be deemed to be made to an
affiliate if—
‘‘(A) the member bank approves such loan or
extension of credit in accordance with substantially
the same standards and procedures and on substan-
tially the same terms that it applies to similar loans
or extensions of credit the proceeds of which are not
transferred to or for the benefit of an affiliate; and
‘‘(B) such loan or extension of credit is not
made for the purposes of evading any of the require-
ments of this section.’’.
SEC. 104. AMENDMENTS TO THE BANKING ACT OF 1933.
(a) SECTION 20.—Section 20 of the Banking Act of
1933 (12 U.S.C. 377) is amended by inserting after the
first undesignated paragraph the following:
‘‘The provisions of this section shall not apply
to the affiliation of any bank that is an affiliate of
a financial services holding company as defined in
the Depository Institution Affiliation Act with the fi-
nancial services holding company or any other affili-
ate of the financial services holding company.’’.
(b) SECTION 32.—Section 32 of the Banking Act of
1933 (12 U.S.C. 78) is amended by adding at the end
the following: ‘‘The provisions of this section shall not
apply to relationships involving an affiliate of a financial
services holding company, as defined in section 101 of the
Depository Institution Affiliation Act, and either that fi-
nancial services holding company or any other affiliate of
that financial services holding company.’’.
SEC. 105. AMENDMENTS TO THE FEDERAL DEPOSIT INSUR-
ANCE ACT.
(a) SECTION 7.—Section 7(j) of the Federal Deposit
Insurance Act (12 U.S.C. 1817(j)) is amended—
(1) in paragraph (8), by striking subparagraph
(B) and inserting the following:
‘‘(B) the term ‘control’ means the power,
directly or indirectly, to direct the management
or policies of a company, or to vote 25 percent
or more of any class of voting securities of a
company, except that no company shall be
deemed to control or to have acquired control of
any other company by virtue of its ownership of
the voting securities of such other company—
‘‘(i) acquired or held in an agency,
trust, or other fiduciary capacity;