IIB 
110TH CONGRESS 
1ST SESSION 
H. R. 698 
IN THE SENATE OF THE UNITED STATES 
MAY 22, 2007 
Received; read twice and referred to the Committee on Banking, Housing, and 
Urban Affairs 
AN ACT 
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, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Industrial Bank Hold-
ing Company Act of 2007’’. 
SEC. 2. INDUSTRIAL BANK HOLDING COMPANY REGULA-
TION. 
(a) DEFINITIONS.— 
(1) INDUSTRIAL
BANK.—Section 3(a) of the 
Federal Deposit Insurance Act (12 U.S.C. 1813(a)) 
is amended by adding at the end the following new 
paragraph: 
‘‘(4) INDUSTRIAL BANK.—The term ‘industrial 
bank’ means any insured State bank that is an in-
dustrial bank, industrial loan company, or other in-
stitution that is excluded, pursuant to section 
2(c)(2)(H) of the Bank Holding Company Act of 
1956, from the definition of the term ‘bank’ for pur-
poses of such Act.’’. 
(2) INDUSTRIAL
BANK
HOLDING
COMPANY.— 
Section 3(w) of the Federal Deposit Insurance Act 
(12 U.S.C. 1813(w)) is amended by adding at the 
end the following new paragraphs: 
‘‘(8) INDUSTRIAL BANK HOLDING COMPANY.— 
The term ‘industrial bank holding company’ means 
any company that— 
‘‘(A) controls (as determined by the Cor-
poration pursuant to section 2(a) of the Bank 
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Holding Company Act of 1956), directly or in-
directly, any industrial bank; and 
‘‘(B) is not— 
‘‘(i) 1 or more of the following: a bank 
holding company, a savings and loan hold-
ing company, a company that is subject to 
the Bank Holding Company Act of 1956 
pursuant to section 8(a) of the Inter-
national Banking Act of 1978, or a holding 
company regulated by the Securities and 
Exchange Commission pursuant to section 
240.15c3–1(a)(7) of title 17 of the Code of 
Federal Regulations (as in effect on Janu-
ary 29, 2007); or 
‘‘(ii) controlled by a company de-
scribed in clause (i). 
‘‘(9) CAPITAL TERMS RELATING TO INDUSTRIAL 
BANK HOLDING COMPANIES.— 
‘‘(A) ADEQUATELY
CAPITALIZED.—With 
respect to an industrial bank holding company, 
the term ‘adequately capitalized’ means a level 
of capitalization which meets or exceeds all ap-
plicable Federal regulatory capital standards. 
‘‘(B) WELL
CAPITALIZED.—With respect 
to an industrial bank holding company, the 
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term ‘well capitalized’ means a level of capital-
ization which meets or exceeds the required 
capital levels for well capitalized industrial bank 
holding companies established by the Corpora-
tion.’’. 
(3) TECHNICAL
AND
CONFORMING
AMEND-
MENTS TO OTHER DEFINITIONS.— 
(A) 
APPROPRIATE
FEDERAL
BANKING 
AGENCY.—Section 3(q)(3) of the Federal De-
posit Insurance Act (12 U.S.C. 1813(q)(3)) is 
amended— 
(i) by striking ‘‘or a foreign’’ and in-
serting ‘‘, any foreign’’; and 
(ii) by inserting ‘‘, and any industrial 
bank holding company and any subsidiary 
of an industrial bank holding company 
(other than a bank)’’ after ‘‘insured 
branch’’. 
(B) DEPOSITORY
INSTITUTION
HOLDING 
COMPANY.—Section 3(w)(1) of the Federal De-
posit Insurance Act (12 U.S.C. 1813(w)(1)) is 
amended— 
(i) by striking ‘‘or a savings’’ and in-
serting ‘‘, any savings’’; and 
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(ii) by inserting ‘‘, and any industrial 
bank holding company’’ before the period 
at the end. 
(b) INDUSTRIAL BANK HOLDING COMPANY REG-
ISTRATION AND OWNERSHIP.—The Federal Deposit In-
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) ACQUISITION OF INDUSTRIAL BANK SHARES OR 
ASSETS.—Section 3 of the Bank Holding Company Act 
of 1956 (other than section 3(c)(3)(B) of that Act) shall 
apply to any company that is or would become an indus-
trial bank holding company in the same manner as such 
section applies to a company that is or would become a 
bank holding company, except that for purposes of apply-
ing this subsection— 
‘‘(1) any reference to a ‘bank holding company’ 
in such section 3 shall be deemed to be a reference 
to an ‘industrial bank holding company’; 
‘‘(2) any reference to a ‘bank’ in such section 
3 shall be deemed to be a reference to an ‘industrial 
bank’; 
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‘‘(3) any reference to the ‘Board’ in such sec-
tion 3 shall be deemed to be a reference to the Cor-
poration; 
‘‘(4) any reference to the ‘Bank Holding Com-
pany Act Amendments of 1970’ in such section 3 
shall be deemed to be a reference to the ‘Industrial 
Bank Holding Company Act of 2007’; 
‘‘(5) any reference to a ‘home State’ in such 
section 3 shall be deemed to be a reference to— 
‘‘(A) with respect to an industrial bank 
holding company, the State in which the total 
deposits of all banking subsidiaries of such 
company were the largest on the later of— 
‘‘(i) January 28, 2007; or 
‘‘(ii) the date on which the company 
becomes an industrial bank holding com-
pany under this section; and 
‘‘(B) with respect to an industrial bank, 
the home State of the bank as determined 
under section 44(g); 
‘‘(6) any reference to a ‘host State’ in such sec-
tion 3 shall be deemed to be a reference to— 
‘‘(A) with respect to an industrial bank 
holding company, a State, other than the home 
State of the company, in which the company 
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controls, or seeks to control, an industrial bank 
subsidiary; and 
‘‘(B) with respect to an industrial bank, 
the host State of the bank as determined under 
section 44(g); 
‘‘(7) any reference to an ‘out-of-State bank 
holding company’ in such section 3 shall be deemed 
to be a reference to, with respect to any State, an 
industrial bank holding company whose home State 
is another State; and 
‘‘(8) any reference to an ‘out-of-State bank’ in 
such section 3 shall be deemed to be a reference to, 
with respect to any State, an industrial bank whose 
home State is another State. 
‘‘(b) APPLICATION PROCESS.—An application filed 
under subsection (a) to acquire control of an industrial 
bank shall be treated as an application for a deposit facil-
ity for purposes of this Act and any other Federal law. 
‘‘(c) REGISTRATION.— 
‘‘(1) IN GENERAL.—Each industrial bank hold-
ing company shall register with the Corporation on 
forms prescribed by the Corporation before the end 
of the 180-day period beginning on the later of— 
‘‘(A) the date the company becomes an in-
dustrial bank holding company; or 
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‘‘(B) the date of the enactment of the In-
dustrial Bank Holding Company Act of 2007. 
‘‘(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 (d)(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 
period described in paragraph (1) within which such 
company shall register and file the requisite infor-
mation. 
‘‘(d) REPORTS AND EXAMINATIONS.— 
‘‘(1) REPORTS.— 
‘‘(A) REPORTS
REQUIRED.—Each indus-
trial bank holding company and each subsidiary 
of an industrial bank holding company, other 
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bank supervisor or other State financial super-
visory agency. 
‘‘(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 appropriate Federal 
agency, any appropriate State bank supervisor, 
or any other State financial supervisory author-
ity with respect to any industrial bank holding 
company or subsidiary of any such holding com-
pany, to the extent the Corporation may deter-
mine such use to be feasible for such purposes. 
‘‘(3) CAPITAL.— 
‘‘(A) IN GENERAL.—The Corporation may 
not, by regulation, guideline, order, or other-
wise, prescribe or impose any capital or capital 
adequacy rules, guidelines, standards, or re-
quirements on any functionally regulated affil-
iate (as defined in section 45) of any depository 
institution that is controlled by an industrial 
bank holding company that— 
‘‘(i) is not a depository institution; 
and 
‘‘(ii) is— 
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‘‘(I) in compliance with the appli-
cable capital requirements of the ap-
propriate Federal supervisory agency 
of the affiliate (including the Securi-
ties and Exchange Commission or 
State insurance authority); 
‘‘(II) properly registered as an 
investment adviser under the Invest-
ment Advisers Act of 1940, or with 
any State; or 
‘‘(III) is licensed as an insurance 
agent with the appropriate State in-
surance authority. 
‘‘(B) RULE OF CONSTRUCTION.—Subpara-
graph (A) shall not be construed as preventing 
the Corporation from imposing capital or cap-
ital adequacy rules, guidelines, standards, or re-
quirements with respect to— 
‘‘(i) activities of a registered invest-
ment adviser other than with respect to in-
vestment advisory activities or activities in-
cidental to investment advisory activities; 
or 
‘‘(ii) activities of a licensed insurance 
agent other than insurance agency activi-
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ties or activities incidental to insurance 
agency activities. 
‘‘(e) ACCESS TO INFORMATION.— 
‘‘(1) INFORMATION
PROVIDED
BY
CORPORA-
TION.—Any confidential supervisory information, in-
cluding examination or other reports, pertaining to 
an industrial bank furnished by the Corporation to 
any other Federal agency or any appropriate State 
supervisory agency shall remain confidential unless 
the Corporation, in writing, otherwise consents. 
‘‘(2) DEFERENCE TO DEPOSITORY INSTITUTION 
EXAMINATIONS.—Any appropriate Federal super-
visory agency of a holding company of an industrial 
bank shall, to the fullest extent possible, forego any 
examination of any depository institution subsidiary 
of the holding company and use the reports of ex-
aminations of the institution made by the appro-
priate Federal banking agency and the appropriate 
State bank supervisor in lieu of a direct examina-
tion. 
‘‘(3) INFORMATION TO BE PROVIDED TO COR-
PORATION.— 
‘‘(A) REQUEST TO AGENCY.—Upon request 
by the Corporation, an appropriate Federal su-
pervisory agency may provide to the Corpora-
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tion information regarding the condition of an 
industrial bank, any holding company that con-
trols such industrial bank, or any other affiliate 
of any such holding company that is necessary 
to assess risk to the industrial bank. 
‘‘(B) AVAILABILITY FROM HOLDING COM-
PANY DIRECTLY.—Notwithstanding section 45, 
section 115 of the Gramm-Leach-Bliley Act, or 
any other provision of law (including any regu-
lation), if the information requested under sub-
paragraph (A) is not provided to the Corpora-
tion, and the information is necessary to assess 
risk to the industrial bank, the Corporation 
may require the holding company or affiliate re-
ferred to in such subparagraph with respect to 
such bank to provide such information to the 
Corporation. 
‘‘(4) EXAMINATIONS BY CORPORATION.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B) and notwithstanding section 45, sec-
tion 115 of the Gramm-Leach-Bliley Act, or 
any other provision of law (including any regu-
lation), no law shall be construed as preventing 
the Corporation from examining an affiliate of 
an industrial bank pursuant to paragraph (2), 
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(3), or (4) of section 10(b), as may be nec-
essary to disclose fully the relationship between 
the industrial bank and the affiliate, and the ef-
fect of such relationship on the industrial bank, 
if the Corporation finds such examination nec-
essary to determine the condition of an indus-
trial bank. 
‘‘(B) FUNCTIONALLY REGULATED AFFILI-
ATES.—Before the Corporation may examine 
any affiliate of an industrial bank that is— 
‘‘(i) a broker, a dealer, an investment 
company, or an investment advisor, or 
‘‘(ii) an entity that is subject to con-
solidated supervision by the Securities and 
Exchange Commission, other than a depos-
itory institution, 
the Corporation shall request the Commission 
to provide the information that the Corporation 
is seeking to obtain through examination and 
may proceed with the examination only if the 
requested information is not provided by the 
Commission in a timely manner. 
‘‘(f) 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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