115
institutions to ensure that each depositor is noti-
fied that deposits at the wholesale financial in-
stitution are not federally insured or otherwise
guaranteed by the United States Government.
‘‘(2) SPECIAL CAPITAL REQUIREMENTS APPLICA-
BLE TO WHOLESALE FINANCIAL INSTITUTIONS.—
‘‘(A) MINIMUM CAPITAL LEVELS.—
‘‘(i) IN
GENERAL.—The Board shall,
by regulation, adopt capital requirements
for wholesale financial institutions—
‘‘(I) to account for the status of
wholesale financial institutions as in-
stitutions that accept deposits that are
not insured under the Federal Deposit
Insurance Act; and
‘‘(II) to provide for the safe and
sound operation of the wholesale finan-
cial institution without undue risk to
creditors or other persons, including
Federal reserve banks, engaged in
transactions with the bank.
‘‘(ii) MINIMUM LEVERAGE RATIO.—The
minimum leverage ratio of tier one capital
to total assets of wholesale financial institu-
tions shall be not less than the level required
116
for a State member insured bank to be well
capitalized unless the Board determines oth-
erwise, consistent with safety and sound-
ness.
‘‘(B) CAPITAL
CATEGORIES
FOR
PROMPT
CORRECTIVE ACTION.—For purposes of applying
section 38 of the Federal Deposit Insurance Act
with respect to any wholesale financial institu-
tion, the Board shall, by regulation, establish, for
each relevant capital measure specified by the
Board under subparagraph (A), the levels at
which a wholesale financial institution is well
capitalized, 
adequately 
capitalized,
undercapitalized, significantly undercapitalized,
and critically undercapitalized.
‘‘(3) ADDITIONAL
REQUIREMENTS
APPLICABLE
TO WHOLESALE FINANCIAL INSTITUTIONS.—In addi-
tion to any requirement otherwise applicable to State
member banks or applicable, under this section, to
wholesale financial institutions, the Board may pre-
scribe, by regulation or order, for wholesale financial
institutions—
‘‘(A) limitations on transactions with affili-
ates to prevent an affiliate from gaining access
to, or the benefits of, credit from a Federal re-
117
serve bank, including overdrafts at a Federal re-
serve bank;
‘‘(B) special clearing balance requirements;
and
‘‘(C) any additional requirements that the
Board determines to be appropriate or necessary
to—
‘‘(i) promote the safety and soundness
of the wholesale financial institution, or
‘‘(ii) protect creditors and other per-
sons, including Federal reserve banks, en-
gaged in transactions with the wholesale fi-
nancial institution.
‘‘(4) EXEMPTIONS FOR WHOLESALE FINANCIAL
INSTITUTIONS.—The Board may, by regulation or
order, exempt any wholesale financial institution
from any provision applicable to a State member
bank that is not a wholesale financial institution, if
the Board finds that such exemption is not inconsist-
ent with—
‘‘(A) the promotion of the safety and sound-
ness of the wholesale financial institution; and
‘‘(B) the protection of creditors and other
persons, including Federal reserve banks, en-
118
gaged in transactions with the wholesale finan-
cial institution.
‘‘(5) NO EFFECT ON OTHER PROVISIONS.—This
section shall not be construed as limiting the Board’s
authority over member banks under any other provi-
sion of law, or to create any obligation for any Fed-
eral reserve bank to make, increase, renew, or extend
any advances or discount under this Act to any mem-
ber bank or other depository institution.
‘‘(d) CONSERVATORSHIP AUTHORITY.—
‘‘(1) IN GENERAL.—The Board may appoint a
conservator to take possession and control of a whole-
sale financial institution to the same extent and in
the same manner as the Comptroller of the Currency
may appoint a conservator for a national bank under
section 203 of the Bank Conservation Act, and the
conservator shall exercise the same powers, functions,
and duties, subject to the same limitations, as are
provided under such Act for conservators of national
banks.
‘‘(2) BOARD AUTHORITY.—The Board shall have
the same authority with respect to any conservator
appointed under paragraph (1) and the wholesale fi-
nancial institution for which such conservator has
been appointed as the Comptroller of the Currency
119
has under the Bank Conservation Act with respect to
a conservator appointed under such Act and a na-
tional bank for which the conservator has been ap-
pointed.
‘‘(e) DEFINITIONS.—For purposes of this section, the
following definitions shall apply:
‘‘(1) WHOLESALE FINANCIAL INSTITUTION.—The
term ‘wholesale financial institution’ means a bank
whose application to become a wholesale financial in-
stitution and a State member bank has been approved
by the Board under this section.
‘‘(2) DEPOSIT.—The term ‘deposit’ has the
meaning given to such term by the Board under this
Act.
‘‘(3) STATE MEMBER INSURED BANK.—The term
‘State member insured bank’ means a State member
bank which is an insured bank (as defined in section
3(h) of the Federal Deposit Insurance Act).
‘‘(f) EXCLUSIVE JURISDICTION.—Subsections (c) and
(e) of section 43 of the Federal Deposit Insurance Act shall
not apply to any wholesale financial institution.’’.
(b) VOLUNTARY TERMINATION OF INSURED STATUS BY
CERTAIN INSTITUTIONS.—