269
(c) ENFORCEMENT.—This section shall be
enforced by the appropriate Federal financial
institution regulator, any appropriate State
insurance authority, and the Federal Trade
Commission with respect to financial institu-
tions and other persons subject to the juris-
diction of such agency or authority under ap-
plicable law, as follows:
(1) Under section 8 of the Federal De-
posit Insurance Act, in the case of—
(A) 
national 
banks, 
Federal
branches and Federal agencies of for-
eign banks, and any subsidiaries of
such entities (except brokers, dealers,
futures commission merchants, per-
sons providing insurance, investment
companies, and investment advisers),
by the office of the Comptroller of the
Currency;
(B) member banks of the Federal
Reserve System (other than national
banks), branches and agencies of for-
eign 
banks 
(other 
than 
Federal
branches, Federal agencies, and in-
sured 
State 
branches 
of 
foreign
270
banks), commercial lending compa-
nies owned or controlled by foreign
banks, organizations operating under
section 25 or 25A of the Federal Re-
serve Act, and bank holding compa-
nies and their nonbank affiliates
(other than financial institutions of
whom the Securities and Exchange
Commission is the federal functional
regulator), by the Board of Governors
of the Federal Reserve System;
(C) banks insured by the Federal
Deposit Insurance Corporation (other
than members of the Federal Reserve
System), insured State branches of
foreign banks, and any subsidiaries of
such entities (other than subsidiaries
of whom the Securities and Exchange
Commission is the Federal functional
regulator), by the Board of Directors
of the Federal Deposit Insurance Cor-
poration; and
(D) savings associations the de-
posits of which are insured by the
Federal Deposit Insurance Corpora-
271
tion, and any subsidiaries of such
savings associations (other than a
subsidiary of whom the Securities
and Exchange Commission is the Fed-
eral functional regulator), by the Di-
rector of the Office of Thrift Super-
vision.
(2) Under the Federal Credit Union
Act, by the Board of the National Credit
Union Administration with respect to any
federally insured credit union, and any
subsidiary of any such credit union
(other than a subsidiary of whom the Se-
curities and Exchange Commission is the
Federal functional regulator).
(3) Under the Securities Exchange
Act of 1934, by the Securities and Ex-
change Commission with respect to—
(A) any broker, dealer, or invest-
ment bank holding company; or
(B) any associated person of a
broker or dealer, concerning the fi-
nancial or securities activities of
which the broker or dealer makes
and keeps records under section
272
15C(b) or 17(h) of the Securities Ex-
change Act of 1934.
(4) Under the Investment Company
Act of 1940, by the Securities and Ex-
change Commission with respect to in-
vestment companies.
(5) Under the Investment Advisers
Act of 1940, by the Securities and Ex-
change Commission with respect to in-
vestment advisers.
(6) Under the Commodity Exchange
Act, by the Commodity Futures Trading
Commission with respect to a commodity
trading adviser, commodity pool oper-
ator, or futures commission merchant.
(7) Under State insurance law, in the
case of any person engaged in providing
insurance, by the applicable State insur-
ance authority of the State in which the
defrauded person is domiciled.
(8) Under the Federal Trade Commis-
sion Act, by the Federal Trade Commis-
sion for any other financial institution or
other person that is not subject to the ju-
risdiction of any agency or authority
273
under any other paragraph of this sub-
section.
(d) CRIMINAL PENALTIES.—Any person who
willfully violates subsection (a) shall be fined
not more than $1,000,000, in the case of an in-
dividual, or $2,500,000 in the case of any per-
son other than an individual, or imprisoned
not more than 10 years, or both.
SEC. 133. RETAIL SWAP CUSTOMER PROTECTIONS.
(a) IN GENERAL.—The Federal Deposit In-
surance Act (12 U.S.C. 1811 et seq.) is amend-
ed by adding at the end the following new sec-
tion:
‘‘SEC. 49. RETAIL SWAP CUSTOMER PROTECTIONS.
‘‘(a) 
REGULATIONS
AUTHORIZED.—The
Board of Governors of the Federal Reserve
System and the Secretary of the Treasury
may, in consultation with appropriate Fed-
eral banking agencies, the Securities and Ex-
change Commission, and the Commodity Fu-
tures Trading Commission, jointly prescribe
customer protection regulations that apply to
sales practices relating to swap agreements
(as defined in section 206(b) of the Gramm-
274
Leach-Bliley Act) between financial institu-
tions and retail customers.
‘‘(b) SALES PRACTICE REGULATIONS.—The
regulations prescribed under subsection (a)
may address—
‘‘(1) the information that financial in-
stitutions shall obtain from retail cus-
tomers in order to determine whether
swap agreements recommended by the fi-
nancial institution to retail customers are
appropriate in light of the retail cus-
tomer’s net worth, ability and willingness
to incur losses, risk management needs,
financial goals, investment experience
and history, and other indicia of appro-
priateness;
‘‘(2) information that financial institu-
tions shall provide to retail customers to
help the retail customers understand the
economic characteristics and risks of
swap agreements recommended by finan-
cial institutions;
‘‘(3) measures to protect retail cus-
tomers against fraudulent, deceptive, and
manipulative acts and practices;
275
‘‘(4) the extent to which access of re-
tail customers to particular classes of
swap agreements should be restricted;
and
‘‘(5) such other matters as the Sec-
retary of the Treasury and the Board of
Governors of the Federal Reserve System
determine are necessary or appropriate
for the protection of retail customers of
swap agreements.
‘‘(c) DEFINITIONS.—
‘‘(1) FINANCIAL INSTITUTION.—The term
‘financial institution’ means a person de-
scribed in subclause (I), (II), (III), (IV),
(V), or (VI) of section 2(c)(2)(B)(ii) of the
Commodity Exchange Act.
‘‘(2) RETAIL CUSTOMER.—The term ‘re-
tail customer’ means a person other than
an eligible contract participant (as de-
fined in section 1a(11) of the Commodity
Exchange Act).
‘‘(d) ENFORCEMENT.—The regulations pre-
scribed under subsection (a) shall be enforced
as follows:
276
‘‘(1) Subject to section 45 of the Fed-
eral Deposit Insurance Act, under section
8 of the Federal Deposit Insurance Act, in
the case of—
‘‘(A) any national bank, Federal
branch or Federal agency of a foreign
bank, or any subsidiary of a national
bank (other than any broker, dealer,
investment company or investment
adviser) by the Comptroller of the
Currency;
‘‘(B) any member bank (other
than a national bank), branch or
agency of a foreign bank (other than
a Federal branch, Federal agency, or
insured State branch of a foreign
bank), commercial lending company
owned or controlled by a foreign
bank, organization operating under
section 25 or 25A of the Federal Re-
serve Act, any subsidiary of any such
entity (other than any broker, dealer,
investment company or investment
adviser) and any bank holding com-
pany and any nonbank affiliate of
277
any such company (other than any
broker, dealer, investment company
or investment adviser) by the Board
of Governors of the Federal Reserve
System;
‘‘(C) 
any 
insured 
State 
non-
member bank, insured State branch
of a foreign bank, or any subsidiary
of any such entity (other than any
broker, dealer, investment company,
or investment adviser) by the Board
of Directors of the Federal Deposit
Insurance Corporation; and
‘‘(D) any savings association the
deposits of which are insured by the
Corporation, any savings and loan
holding company, or any subsidiary
of any such savings association or
holding company (other than any
broker, dealer, investment company
or investment adviser) by the Direc-
tor of the Office of Thrift Supervision.
‘‘(2) Under the Federal Credit Union
Act, by the National Credit Union Admin-
istration Board with respect to any feder-
278
ally insured credit union, and any sub-
sidiaries of such an entity.
‘‘(3) Under the Securities Exchange
Act of 1934, by the Securities and Ex-
change Commission with respect to any
registered broker or dealer, or any asso-
ciated person thereof that is not other-
wise regulated.
‘‘(4) Under the Commodity Exchange
Act, by the Commodity Futures Trading
Commission, with respect to any reg-
istered futures commission merchant, or
any affiliated person of any such futures
commission merchant that is not other-
wise regulated.
‘‘(5) Under State insurance law, in the
case of any person engaged in providing
insurance, or any affiliate of any such
person that is not otherwise regulated, by
the applicable State insurance authority
of the State in which the person is domi-
ciled.’’.
(b) REPORT.—If regulations authorized
under the amendment made by subsection (a)
have not been prescribed in final form before