I 
118TH CONGRESS 
1ST SESSION H. R. 2714 
To repeal certain provisions of the Gramm-Leach-Bliley Act and revive the 
separation between commercial banking and the securities business, in 
the manner provided in the Banking Act of 1933, the so-called ‘‘Glass- 
Steagall Act’’, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 19, 2023 
Ms. KAPTUR (for herself, Ms. NORTON, Ms. OMAR, Ms. PINGREE, Ms. WILD, 
Ms. TLAIB, Mr. POCAN, and Mrs. WATSON COLEMAN) introduced the fol-
lowing bill; which was referred to the Committee on Financial Services 
A BILL 
To repeal certain provisions of the Gramm-Leach-Bliley Act 
and revive the separation between commercial banking 
and the securities business, in the manner provided in 
the Banking Act of 1933, the so-called ‘‘Glass-Steagall 
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 ‘‘Return to Prudent 
Banking Act of 2023’’. 
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SEC. 2. GLASS-STEAGALL REVIVED. 
(a) WALL BETWEEN COMMERCIAL BANKS AND SE-
CURITIES ACTIVITIES REESTABLISHED.—Section 18 of 
the Federal Deposit Insurance Act (12 U.S.C. 1828) is 
amended by adding at the end the following new sub-
section: 
‘‘(bb) LIMITATIONS ON SECURITY AFFILIATIONS.— 
‘‘(1) PROHIBITION ON AFFILIATION BETWEEN 
INSURED DEPOSITORY INSTITUTIONS AND INVEST-
MENT BANKS OR SECURITIES FIRMS.—An insured 
depository institution may not be or become an affil-
iate of any broker or dealer, any investment adviser, 
any investment company, or any other person en-
gaged principally in the issue, flotation, under-
writing, public sale, or distribution at wholesale or 
retail or through syndicate participation of stocks, 
bonds, debentures, notes, or other securities. 
‘‘(2) PROHIBITION
ON
OFFICERS, DIRECTORS 
AND EMPLOYEES OF SECURITIES FIRMS SERVICE ON 
BOARDS OF DEPOSITORY INSTITUTIONS.— 
‘‘(A) IN GENERAL.—An individual who is 
an officer, director, partner, or employee of any 
broker or dealer, any investment adviser, any 
investment company, or any other person en-
gaged principally in the issue, flotation, under-
writing, public sale, or distribution at wholesale 
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or retail or through syndicate participation of 
stocks, bonds, debentures, notes, or other secu-
rities may not serve at the same time as an of-
ficer, director, employee, or other institution-af-
filiated party of any insured depository institu-
tion. 
‘‘(B) 
EXCEPTION.—Subparagraph 
(A) 
shall not apply with respect to service by any 
individual which is otherwise prohibited under 
such subparagraph if the appropriate Federal 
banking agency determines, by regulation with 
respect to a limited number of cases, that serv-
ice by such individual as an officer, director, 
employee, or other institution-affiliated party of 
any insured depository institution would not un-
duly influence the investment policies of the de-
pository institution or the advice the institution 
provides to customers. 
‘‘(C) TERMINATION OF SERVICE.—Subject 
to a determination under subparagraph (B), 
any individual described in subparagraph (A) 
who, as of the date of the enactment of the Re-
turn to Prudent Banking Act of 2023, is serv-
ing as an officer, director, employee, or other 
institution-affiliated party of any insured depos-
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itory institution shall terminate such service as 
soon as practicable after such date of enact-
ment and no later than the end of the 60-day 
period beginning on such date. 
‘‘(3) 
TERMINATION
OF
EXISTING
AFFILI-
ATION.— 
‘‘(A) ORDERLY WIND-DOWN OF EXISTING 
AFFILIATION.—Any affiliation of an insured de-
pository institution with any broker or dealer, 
any investment adviser, any investment com-
pany, or any other person, as of the date of the 
enactment of the Return to Prudent Banking 
Act of 2023, which is prohibited under para-
graph (1) shall be terminated as soon as prac-
ticable and in any event no later than the end 
of the 2-year period beginning on such date of 
enactment. 
‘‘(B) EARLY
TERMINATION.—The appro-
priate Federal banking agency, after oppor-
tunity for hearing, may terminate, at any time, 
the authority conferred by the preceding sub-
paragraph to continue any affiliation subject to 
such subparagraph until the end of the period 
referred to in such subparagraph if the agency 
determines, having due regard for the purposes 
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of this subsection and the Return to Prudent 
Banking Act of 2023, that such action is nec-
essary to prevent undue concentration of re-
sources, decreased or unfair competition, con-
flicts of interest, or unsound banking practices 
and is in the public interest. 
‘‘(C) EXTENSION.—Subject to a deter-
mination under subparagraph (B), an appro-
priate Federal banking agency may extend the 
2-year period referred to in subparagraph (A) 
from time to time as to any particular insured 
depository institution for not more than 6 
months at a time, if, in the judgment of the 
agency, such an extension would not be detri-
mental to the public interest, but no such exten-
sions shall in the aggregate exceed 1 year. 
‘‘(4) DEFINITIONS.—For purposes of this sub-
section, the terms ‘broker’ and ‘dealer’ have the 
same meanings as in section 3(a) of the Securities 
Exchange Act of 1934 and the terms ‘investment 
adviser’ and ‘investment company’ have the meaning 
given such terms under the Investment Advisers Act 
of 1940 and the Investment Company Act of 1940, 
respectively.’’. 
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(b) PROHIBITION ON BANKING ACTIVITIES BY SECU-
RITIES FIRMS CLARIFIED.—Section 21 of the Banking 
Act of 1933 (12 U.S.C. 378) is amended by adding at 
the end the following new subsection: 
‘‘(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).’’. 
(c) CONTINUED APPLICABILITY OF ICI VS. CAMP.— 
(1) IN GENERAL.—The Congress ratifies the in-
terpretation of the paragraph designated the ‘‘Sev-
enth’’ of section 5136 of the Revised Statutes of the 
United States (12 U.S.C. 24, as amended by section 
16 of the Banking Act of 1933 and subsequent 
amendments) and section 21 of the Banking Act of 
1933 (12 U.S.C. 378) by the Supreme Court of the 
United States in the case of Investment Company 
Institute v. Camp (401 U.S. 617 et seq. (1971)) 
with regard to the permissible activities of banks 
and securities firms, except to the extent expressly 
prescribed otherwise by this section. 
(2) APPLICABILITY OF REASONING.—The rea-
soning of the Supreme Court of the United States 
in the case referred to in paragraph (1) with respect 
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to sections 20 and 32 of the Banking Act of 1933 
(as in effect prior to the date of the enactment of 
the Gramm-Leach-Bliley Act) shall continue to apply 
to subsection (bb) of section 18 of the Federal De-
posit Insurance Act (as added by subsection (a) of 
this section) except to the extent the scope and ap-
plication of such subsection as enacted exceed the 
scope and application of such sections 20 and 32. 
(3) LIMITATION ON AGENCY INTERPRETATION 
OR JUDICIAL CONSTRUCTION.—No appropriate Fed-
eral banking agency, by regulation, order, interpre-
tation, or other action, and no court within the 
United States may construe the paragraph des-
ignated the ‘‘Seventh’’ of section 5136 of the Re-
vised Statutes of the United States (12 U.S.C. 24, 
as amended by section 16 of the Banking Act of 
1933 and subsequent amendments), section 21 of 
the Banking Act of 1933, or section 18(bb) of the 
Federal Deposit Insurance Act more narrowly than 
the reasoning of the Supreme Court of the United 
States in the case of Investment Company Institute 
v. Camp (401 U.S. 617 et seq. (1971)) as to the 
construction and the purposes of such provisions. 
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SEC. 3. REPEAL OF GRAMM-LEACH-BLILEY ACT PROVI-
SIONS. 
(a) FINANCIAL HOLDING COMPANY.— 
(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.— 
(A) ORDERLY
WIND-DOWN
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 com-
pany, any affiliation by the bank holding com-
pany which is not permitted for a bank holding 
company shall be terminated as soon as prac-
ticable and in any event no later than the end 
of the 2-year period beginning on such date of 
enactment. 
(B) EARLY TERMINATION.—The Board of 
Governors of the Federal Reserve System, after 
opportunity for hearing, may terminate, at any 
time, the authority conferred by the preceding 
subparagraph to continue any affiliation subject 
to such subparagraph until the end of the pe-
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riod referred to in such subparagraph if the 
Board determines, having due regard to the 
purposes of this Act, that such action is nec-
essary to prevent undue concentration of re-
sources, decreased or unfair competition, con-
flicts of interest, or unsound banking practices, 
and is in the public interest. 
(C) EXTENSION.—Subject to a determina-
tion under subparagraph (B), the Board of 
Governors of the Federal Reserve System may 
extend the 2-year period referred to in subpara-
graph (A) above from time to time as to any 
particular bank holding company for not more 
than 6 months at a time, if, in the judgment of 
the Board, such an extension would not be det-
rimental to the public interest, but no such ex-
tensions shall in the aggregate exceed 1 year. 
(3) TECHNICAL
AND
CONFORMING
AMEND-
MENTS.— 
(A) Section 2 of the Bank Holding Com-
pany Act of 1956 (12 U.S.C. 1841) is amended 
by striking subsection (p). 
(B) Section 5(c) of the Bank Holding 
Company Act of 1956 (12 U.S.C. 1844(c)) is 
amended— 
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(i) by striking paragraphs (3) and (4); 
and 
(ii) by redesignating paragraph (5) as 
paragraph (3). 
(C) Section 5 of the Bank Holding Com-
pany Act of 1956 (12 U.S.C. 1844) is amended 
by striking subsection (g). 
(D) The Federal Deposit Insurance Act 
(12 U.S.C. 1811 et seq.) is amended by striking 
section 45. 
(E) Subtitle B of title I of the Gramm- 
Leach-Bliley Act is amended by striking section 
114 (12 U.S.C. 1828a) and section 115 (12 
U.S.C. 1820a). 
(b) FINANCIAL SUBSIDIARIES REPEALED.— 
(1) IN GENERAL.—Section 5136A of the Re-
vised Statutes of the United States (12 U.S.C. 24a) 
is amended to read as follows: 
‘‘SEC. 5136A. [REPEALED].’’. 
(2) TRANSITION.— 
(A) ORDERLY
WIND-DOWN
OF
EXISTING 
AFFILIATION.—In the case of a national bank 
which, pursuant to the amendments made by 
paragraph (1), is no longer authorized to con-
trol or be affiliated with a financial subsidiary 
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as of the date of the enactment of this Act, 
such affiliation shall be terminated as soon as 
practicable and in any event no later than the 
end of the 2-year period beginning on such date 
of enactment. 
(B) EARLY
TERMINATION.—The Comp-
troller of the Currency, after opportunity for 
hearing, may terminate, at any time, the au-
thority conferred by the preceding subpara-
graph to continue any affiliation subject to such 
subparagraph until the end of the period re-
ferred to in such subparagraph if the Comp-
troller determines, having due regard for the 
purposes of this Act, that such action is nec-
essary to prevent undue concentration of re-
sources, decreased or unfair competition, con-
flicts of interest, or unsound banking practices 
and is in the public interest. 
(C) EXTENSION.—Subject to a determina-
tion under subparagraph (B), the Comptroller 
of the Currency may extend the 2-year period 
referred to in subparagraph (A) above from 
time to time as to any particular national bank 
for not more than 6 months at a time, if, in the 
judgment of the Comptroller, such an extension 
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would not be detrimental to the public interest, 
but no such extensions shall in the aggregate 
exceed 1 year. 
(3) TECHNICAL
AND
CONFORMING
AMEND-
MENT.— 
(A) The 20th undesignated paragraph of 
section 9 of the Federal Reserve Act (12 U.S.C. 
335) is amended by striking the last sentence. 
(B) The Federal Deposit Insurance Act is 
amended by striking section 46 (12 U.S.C. 
1831w). 
(4) CLERICAL AMENDMENT.—The table of sec-
tions for chapter one of title LXII of the Revised 
Statutes of the United States is amended by striking 
the item relating to section 5136A. 
(c) DEFINITION OF BROKER.—Section 3(a)(4)(B) of 
the Securities Exchange Act of 1934 (15 U.S.C. 
78c(a)(4)(B)) is amended— 
(1) by striking clauses (i), (iii), (v), (vii), (x), 
and (xi); and 
(2) by redesignating clauses (ii), (iv), (vi), (viii), 
and (ix) as clauses (i), (ii), (iii), (iv), and (v), respec-
tively. 
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(d) DEFINITION OF DEALER.—Section 3(a)(5)(C) of 
the Securities Exchange Act of 1934 (15 U.S.C. 
78c(a)(5)(C)) is amended— 
(1) by striking clauses (i) and (iii); and 
(2) by redesignating clauses (ii) and (iv) as 
clauses (i) and (ii), respectively. 
(e) DEFINITION
OF IDENTIFIED BANKING PROD-
UCT.—Subsection (a) of section 206 of the Gramm-Leach- 
Bliley Act (15 U.S.C. 78c note) is amended— 
(1) by inserting ‘‘and’’ after the semicolon at 
the end of paragraph (4); 
(2) in paragraph (5)(B)(ii), by striking ‘‘; or’’ 
and inserting a period; and 
(3) by striking paragraph (6) and all that fol-
lows through the end of such subsection. 
(f) DEFINITION OF ACTIVITIES CLOSELY RELATED 
TO BANKING.— 
(1) IN GENERAL.—Section 4(c)(8) of the Bank 
Holding 
Company 
Act 
of 
1956 
(12 
U.S.C. 
1843(c)(8)) is amended by striking ‘‘the day before 
the date of the enactment of the Gramm-Leach-Bli-
ley Act’’ and inserting ‘‘January 1, 1970’’. 
(2) PROVISION
ALLOWING
FOR
EXCEPTIONS 
AFTER REPORT TO THE CONGRESS.—Subsection (j) 
of section 4 of the Bank Holding Company Act of 
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1956 (12 U.S.C. 1843(j)) is amended to read as fol-
lows: 
‘‘(j) APPROVAL
FOR
CERTAIN
POST-1970 SUB-
SECTION (c)(8) ACTIVITIES.— 
‘‘(1) IN GENERAL.—Notwithstanding the limita-
tion of the January 1, 1970, approval deadline in 
subsection (c)(8), the Board may determine an activ-
ity to be so closely related to banking as to be a 
proper incident thereto for purposes of such sub-
section, subject to the requirements of this sub-
section and such terms and conditions as the Board 
may require. 
‘‘(2) GENERAL
STANDARDS.—In making any 
determination under paragraph (1), the Board shall 
consider whether performance of the activity by a 
bank holding company or a subsidiary of such com-
pany can reasonably be expected to result in a viola-
tion of section 18(bb) of the Federal Deposit Insur-
ance Act, section 21 of the Banking Act of 1933, or 
the spirit of section 2(c) of the Return to Prudent 
Banking Act of 2023, and other possible adverse ef-
fects, such as undue concentration of resources, de-
creased or unfair competition, conflicts of interests, 
or unsound banking practices. 
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‘‘(3) REPORT AND WAIT.—No determination of 
the Board under paragraph (1) may take effect be-
fore the end of the 180-day period beginning on the 
date by which notice of the determination has been 
submitted to both Houses of the Congress together 
with a detailed explanation of the activities to which 
the determination relates and the basis for the de-
termination, unless before the end of such period, 
such activities have been approved by an Act of Con-
gress.’’. 
(g) 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. 4. REPORTS TO THE CONGRESS. 
(a) REPORTS REQUIRED.—Each time the Board of 
Governors of the Federal Reserve System, the Comptroller 
of the Currency, or another appropriate Federal banking 
agency makes a determination or an extension under sub-
paragraph (B) or (C) of paragraph (2) or (3) of section 
18(bb) of the Federal Deposit Insurance Act (as added 
by section 2(a)) or subparagraph (B) or (C) of subsection 
(a)(2) or (b)(2) of section 3, as the case may be, the 
Board, Comptroller, or agency shall promptly submit a re-
port of such determination or extension to the Congress. 
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(b) CONTENTS.—Each report submitted to the Con-
gress under subsection (a) shall contain a detailed descrip-
tion of the basis for the determination or extension. 
Æ 
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