(b) NATIONAL CREDIT UNION ADMINISTRATION.—
Section 202(a) of the Federal Credit Union Act (12 
U.S.C. 1782(a)) is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(8) DATA
SHARING
WITH
OTHER
AGENCIES 
AND PERSONS.—In addition to reports of examina-
tion, reports of condition, and other reports required 
to be regularly provided to the Board (with respect 
to all insured credit unions, including a credit union 
for which the Corporation has been appointed con-
servator or liquidating agent) or an appropriate 
State commission, board, or authority having super-
vision of a State-chartered credit union, the Board 
may, in the Board’s discretion, furnish any report of 
examination or other confidential supervisory infor-
mation concerning any credit union or other entity 
examined by the Board under authority of any Fed-
eral law, to—
‘‘(A) any other Federal or State agency or 
authority with supervisory or regulatory author-
ity over the credit union or other entity; 
‘‘(B) any officer, director, or receiver of 
such credit union or entity; and
‘‘(C) any other institution-affiliated party 
of such credit union or entity the Board deter-
mines to be appropriate.’’. 
SEC. 603. PENALTY FOR UNAUTHORIZED PARTICIPATION 
BY CONVICTED INDIVIDUAL. 
Section 19 of the Federal Deposit Insurance Act (12 
U.S.C. 1829) is amended by adding at the end the fol-
lowing new subsection: 
‘‘(c) NONINSURED BANKS.—Subsections (a) and (b) 
shall apply to a noninsured national bank and a non-
insured State member bank, and any agency or non-
insured branch (as such terms are defined in section 1(b) 
of the International Banking Act of 1978) of a foreign 
bank as if such bank, branch, or agency were an insured 
depository institution, except such subsections shall be ap-
plied for purposes of this subsection by substituting the 
agency determined under the following paragraphs for 
‘Corporation’ each place such term appears in such sub-
sections: 
‘‘(1) The Comptroller of the Currency, in the 
case of a noninsured national bank or any Federal 
agency or noninsured Federal branch of a foreign 
bank. 
‘‘(2) The Board of Governors of the Federal 
Reserve System, in the case of a noninsured State
member bank or any State agency or noninsured 
State branch of a foreign bank.’’. 
SEC. 604. AMENDMENT PERMITTING THE DESTRUCTION OF 
OLD RECORDS OF A DEPOSITORY INSTITU-
TION BY THE FDIC AFTER THE APPOINTMENT 
OF THE FDIC AS RECEIVER. 
Section 11(d)(15)(D) of the Federal Deposit Insur-
ance Act (12 U.S.C. 1821(d)(15)(D)) is amended—
(1) by striking ‘‘RECORDKEEPING
REQUIRE-
MENT.—After the end of the 6-year period’’ and in-
serting ‘‘RECORDKEEPING REQUIREMENT.—
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), after the end of the 6-
year period’’; 
(2) by striking ‘‘to be unnecessary’’ and insert-
ing ‘‘are unnecessary and not relevant to any pend-
ing or reasonably probable future litigation’’; and 
(3) by adding at the end the following new 
clause: 
‘‘(ii) OLD RECORDS.—In the case of 
records of an insured depository institution 
which—
‘‘(I) are at least 10 years old, as 
of the date the Corporation is ap-
pointed as the receiver of such deposi-
tory institution; and 
‘‘(II) are unnecessary and not 
relevant to any pending or reasonably 
probable future litigation, as provided 
in clause (i), 
the Corporation may destroy such records 
in accordance with clause (i) any time 
after such appointment is final without re-
gard to the 6-year period of limitation con-
tained in such clause.’’. 
SEC. 605. MODERNIZATION OF RECORDKEEPING REQUIRE-
MENT. 
Subsection (f) of section 10 of the Federal Deposit 
Insurance Act (12 U.S.C. 1820(f)) is amended to read as 
follows: 
‘‘(f) PRESERVATION OF AGENCY RECORDS.—
‘‘(1) IN GENERAL.—A Federal banking agency 
may cause any and all records, papers, or documents 
kept by the agency or in the possession or custody 
of the agency to be—
‘‘(A) photographed or microphotographed 
or otherwise reproduced upon film; or 
‘‘(B) preserved in any electronic medium 
or format which is capable of—
‘‘(i) being read or scanned by com-
puter; and 
‘‘(ii) being reproduced from such elec-
tronic medium or format by printing or 
any other form of reproduction of elec-
tronically stored data. 
‘‘(2) TREATMENT AS ORIGINAL RECORDS.—Any 
photographs, microphotographs, or photographic 
film or copies thereof described in paragraph (1)(A) 
or reproduction of electronically stored data de-
scribed in paragraph (1)(B) shall be deemed to be 
an original record for all purposes, including intro-
duction in evidence in all State and Federal courts 
or administrative agencies and shall be admissible to 
prove any act, transaction, occurrence, or event 
therein recorded. 
‘‘(3) AUTHORITY OF THE FEDERAL BANKING 
AGENCIES.—Any photographs, microphotographs, or 
photographic film or copies thereof described in 
paragraph (1)(A) or reproduction of electronically 
stored data described in paragraph (1)(B) shall be 
preserved in such manner as the Federal banking 
agency shall prescribe and the original records, pa-
pers, or documents may be destroyed or otherwise
disposed of as the Federal banking agency may di-
rect.’’. 
SEC. 606. STREAMLINING REPORTS OF CONDITION. 
Section 7(a) of the Federal Deposit Insurance Act 
(12 U.S.C. 1817(a)) is amended by adding the following 
new paragraph: 
‘‘(11) STREAMLINING
REPORTS
OF
CONDI-
TION.—
‘‘(A) REVIEW
OF
INFORMATION
AND 
SCHEDULES.—Before the end of the 1-year pe-
riod beginning on the date of the enactment of 
the Financial Services Regulatory Relief Act of 
2005 and before the end of each 5-year period 
thereafter, each Federal banking agency shall, 
in consultation with the other relevant Federal 
banking agencies, review the information and 
schedules that are required to be filed by an in-
sured depository institution in a report of con-
dition required under paragraph (3). 
‘‘(B) REDUCTION OR ELIMINATION OF IN-
FORMATION
FOUND
TO
BE
UNNECESSARY.—
After completing the review required by sub-
paragraph (A), a Federal banking agency, in 
consultation with the other relevant Federal 
banking agencies, shall reduce or eliminate any
requirement to file information or schedules 
under paragraph (3) (other than information or 
schedules that are otherwise required by law) if 
the agency determines that the continued collec-
tion of such information or schedules is no 
longer necessary or appropriate.’’. 
SEC. 607. EXPANSION OF ELIGIBILITY FOR 18-MONTH EX-
AMINATION 
SCHEDULE 
FOR 
COMMUNITY 
BANKS. 
Paragraph (4)(A) of section 10(d) of the Federal De-
posit Insurance Act (12 U.S.C. 1820(d)) is amended by 
striking ‘‘$250,000,000’’ and inserting ‘‘$1,000,000,000’’. 
SEC. 608. SHORT FORM REPORTS OF CONDITION FOR CER-
TAIN COMMUNITY BANKS. 
(a) IN GENERAL.—Section 7(a) of the Federal De-
posit Insurance Act (12 U.S.C. 1817(a)) is amended by 
inserting after paragraph (11) (as added by section 606 
of this title) the following new paragraph: 
‘‘(12) SHORT
FORM
REPORTS
OF
CONDITION 
FOR COMMUNITY BANKS.—
‘‘(A) IN
GENERAL.—With respect to re-
ports of condition required under paragraph (3) 
for each calendar quarter, an insured depository 
institution described in subparagraphs (A), (B), 
(C), and (D) of section 10(d)(4) may submit a
short form of any such report of condition in 2 
nonsequential quarters of any calendar year. 
‘‘(B) SHORT FORM DEFINED.—The term 
‘short form’, when used in connection with any 
report of condition required under paragraph 
(3), means a report of condition in a format es-
tablished by the appropriate Federal banking 
agency, after notice and opportunity for com-
ment, that—
‘‘(i) is significantly and materially less 
burdensome for the insured depository in-
stitution to prepare than the format of the 
report of condition required under para-
graph (3); and 
‘‘(ii) provides sufficient material infor-
mation for the appropriate Federal bank-
ing agency to assure the maintenance of 
the safe and sound condition of the deposi-
tory institution and safe and sound prac-
tices.’’. 
(b) REGULATIONS.—Any regulation required to carry 
out the amendment made by subsection (a) shall be pub-
lished in final form before the end of the 6-month period 
beginning on the date of the enactment of this Act.
SEC. 609. CLARIFICATION OF EXTENT OF SUSPENSION, RE-
MOVAL, AND PROHIBITION AUTHORITY OF 
FEDERAL BANKING AGENCIES IN CASES OF 
CERTAIN CRIMES BY INSTITUTION-AFFILI-
ATED PARTIES. 
(a) INSURED DEPOSITORY INSTITUTIONS.—
(1) IN GENERAL.—Section 8(g)(1) of the Fed-
eral Deposit Insurance Act (12 U.S.C. 1818(g)(1)) 
is amended—
(A) in subparagraph (A)—
(i) by striking ‘‘is charged in any in-
formation, indictment, or complaint, with 
the commission of or participation in’’ and 
inserting ‘‘is the subject of any informa-
tion, indictment, or complaint, involving 
the commission of or participation in’’; 
(ii) by striking ‘‘may pose a threat to 
the interests of the depository institution’s 
depositors or may threaten to impair pub-
lic confidence in the depository institu-
tion,’’ and insert ‘‘posed, poses, or may 
pose a threat to the interests of the deposi-
tors of, or threatened, threatens, or may 
threaten to impair public confidence in, 
any relevant depository institution (as de-
fined in subparagraph (E)),’’; and
(iii) by striking ‘‘affairs of the deposi-
tory institution’’ and inserting ‘‘affairs of 
any depository institution’’; 
(B) in subparagraph (B)(i), by striking 
‘‘the depository institution’’ and inserting ‘‘any 
depository institution that the subject of the no-
tice is affiliated with at the time the notice is 
issued’’; 
(C) in subparagraph (C)(i)—
(i) by striking ‘‘may pose a threat to 
the interests of the depository institution’s 
depositors or may threaten to impair pub-
lic confidence in the depository institu-
tion,’’ and insert ‘‘posed, poses, or may 
pose a threat to the interests of the deposi-
tors of, or threatened, threatens, or may 
threaten to impair public confidence in, 
and relevant depository institution (as de-
fined in subparagraph (E)),’’; and 
(ii) by striking ‘‘affairs of the deposi-
tory institution’’ and inserting ‘‘affairs of 
any depository institution’’; 
(D) in subparagraph (C)(ii), by striking 
‘‘affairs of the depository institution’’ and in-
serting ‘‘affairs of any depository institution’’;
(E) in subparagraph (D)(i), by striking 
‘‘the depository institution’’ and inserting ‘‘any 
depository institution that the subject of the 
order is affiliated with at the time the order is 
issued’’; and 
(F) by adding at the end the following new 
subparagraph: 
‘‘(E) RELEVANT
DEPOSITORY
INSTITU-
TION.—For purposes of this subsection, the 
term ‘relevant depository institution’ means any 
depository institution of which the party is or 
was an institution-affiliated party at the time—
‘‘(i) the information, indictment or 
complaint described in subparagraph (A) 
was issued; or 
‘‘(ii) the notice is issued under sub-
paragraph (A) or the order is issued under 
subparagraph (C)(i).’’. 
(2) CLERICAL AMENDMENT.—The heading for 
section 8(g) of the Federal Deposit Insurance Act 
(12 U.S.C. 1818(g)) is amended to read as follows: 
‘‘(g) SUSPENSION, REMOVAL, AND
PROHIBITION 
FROM PARTICIPATION ORDERS IN THE CASE OF CERTAIN 
CRIMINAL OFFENSES.—’’. 
(b) INSURED CREDIT UNIONS.—
(1) IN
GENERAL.—Section 206(i)(1) of the 
Federal Credit Union Act (12 U.S.C. 1786(i)(1)) is 
amended—
(A) in subparagraph (A), by striking ‘‘the 
credit union’’ each place such term appears and 
inserting ‘‘any credit union’’; 
(B) in subparagraph (B)(i), by inserting 
‘‘of which the subject of the order is, or most 
recently was, an institution-affiliated party’’ be-
fore the period at the end; 
(C) in subparagraph (C)—
(i) by striking ‘‘the credit union’’ each 
place such term appears and inserting 
‘‘any credit union’’; and 
(ii) by striking ‘‘the credit union’s’’ 
and inserting ‘‘any credit union’s’’; 
(D) in subparagraph (D)(i), by striking 
‘‘upon such credit union’’ and inserting ‘‘upon 
the credit union of which the subject of the 
order is, or most recently was, an institution-af-
filiated party’’; and 
(E) by adding at the end the following new 
subparagraph: 
‘‘(E) CONTINUATION OF AUTHORITY.—The 
Board may issue an order under this paragraph
with respect to an individual who is an institu-
tion-affiliated party at a credit union at the 
time of an offense described in subparagraph 
(A) without regard to—
‘‘(i) whether such individual is an in-
stitution-affiliated party at any credit 
union at the time the order is considered 
or issued by the Board; or 
‘‘(ii) whether the credit union at 
which the individual was an institution-af-
filiated party at the time of the offense re-
mains in existence at the time the order is 
considered or issued by the Board.’’. 
(2) CLERICAL AMENDMENT.—Section 206(i) of 
the Federal Credit Union Act (12 U.S.C. 1786(i)) is 
amended by striking ‘‘(i)’’ at the beginning and in-
serting the following new subsection heading: 
‘‘(i) SUSPENSION, REMOVAL, AND
PROHIBITION 
FROM PARTICIPATION ORDERS IN THE CASE OF CERTAIN 
CRIMINAL OFFENSES.—’’. 
SEC. 610. STREAMLINING DEPOSITORY INSTITUTION MERG-
ER APPLICATION REQUIREMENTS. 
(a) IN GENERAL.—Paragraph (4) of section 18(c) of 
the Federal Deposit Insurance Act (12 U.S.C. 1828(c)) 
is amended to read as follows:
‘‘(4) REPORTS ON COMPETITIVE FACTORS.—
‘‘(A) REQUEST FOR REPORT.—In the in-
terests of uniform standards and subject to 
subparagraph (B), the responsible agency shall, 
before acting on any application for approval of 
a merger transaction—
‘‘(i) request a report on the competi-
tive factors involved from the Attorney 
General; and 
‘‘(ii) provide a copy of the request to 
the Corporation (when the Corporation is 
not the responsible agency). 
‘‘(B) CONCURRENT CONSIDERATION.—The 
responsible agency shall not be required to 
make a request under subparagraph (A) before 
acting on an application for approval of a merg-
er transaction if—
‘‘(i) the agency finds that it must act 
immediately in order to prevent the prob-
able failure of a depository institution in-
volved in the transaction; or 
‘‘(ii) the transaction consists of a 
merger between an insured depository in-
stitution and 1 or more affiliates of the de-
pository institution.
‘‘(C) FURNISHING
OF
REPORT.—The re-
port requested under subparagraph (A) shall be 
furnished by the Attorney General to the re-
sponsible agency—
‘‘(i) not more than 30 calendar days 
after the date on which the Attorney Gen-
eral received the request; or 
‘‘(ii) not more than 10 calendar days 
after such date, if the requesting agency 
advises the Attorney General that an emer-
gency exists requiring expeditious action.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENT.—
Section 18(c)(6) of the Federal Deposit Insurance Act (12 
U.S.C. 1828(c)(6)) is amended—
(1) in the second sentence by striking ‘‘banks 
and savings associations involved’’ and inserting the 
following: ‘‘insured depository institutions involved, 
or if the proposed merger transaction is solely be-
tween an insured depository institution and 1 or 
more of affiliates of the depository institution,’’ and 
(2) by striking the penultimate sentence and in-
serting the following: ‘‘If the agency has advised the 
Attorney General under paragraph (4)(C)(ii) of the 
existence of an emergency requiring expeditious ac-
tion and has requested a report on the competitive
100
factors within 10 days, the transaction may not be 
consummated before the fifth calendar day after the 
date of approval by the agency.’’. 
SEC. 611. INCLUSION OF DIRECTOR OF THE OFFICE OF 
THRIFT SUPERVISION IN LIST OF BANKING 
AGENCIES 
REGARDING 
INSURANCE 
CUS-
TOMER PROTECTION REGULATIONS. 
Section 47(g)(2)(B)(i) of the Federal Deposit Insur-
ance Act (12 U.S.C. 1831x(g)(2)(B)(i)) is amended by in-
serting ‘‘the Director of the Office of Thrift Supervision,’’ 
after ‘‘Comptroller of the Currency,’’. 
SEC. 612. PROTECTION OF CONFIDENTIAL INFORMATION 
RECEIVED 
BY 
FEDERAL 
BANKING 
REGU-
LATORS FROM FOREIGN BANKING SUPER-
VISORS. 
Section 15 of the International Banking Act of 1978 
(12 U.S.C. 3109) is amended by adding at the end the 
following new subsection: 
‘‘(c) CONFIDENTIAL INFORMATION RECEIVED FROM 
FOREIGN SUPERVISORS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (3), a Federal banking agency shall not be 
compelled to disclose information received from a 
foreign regulatory or supervisory authority if—
101
‘‘(A) the Federal banking agency deter-
mines that the foreign regulatory or supervisory 
authority has, in good faith, determined and 
represented to such Federal banking agency 
that public disclosure of the information would 
violate the laws applicable to that foreign regu-
latory or supervisory authority; and 
‘‘(B) the relevant Federal banking agency 
obtained such information pursuant to—
‘‘(i) such procedures as the Federal 
banking agency may establish for use in 
connection with the administration and en-
forcement of Federal banking laws; or 
‘‘(ii) a memorandum of understanding 
or other similar arrangement between the 
Federal banking agency and the foreign 
regulatory or supervisory authority. 
‘‘(2) TREATMENT
UNDER
TITLE 5, UNITED 
STATES CODE.—For purposes of section 552 of title 
5, United States Code, this subsection shall be treat-
ed as a statute described in subsection (b)(3)(B) of 
such section. 
‘‘(3) SAVINGS PROVISION.—No provision of this 
section shall be construed as—
102
‘‘(A) authorizing any Federal banking 
agency to withhold any information from any 
duly authorized committee of the House of Rep-
resentatives or the Senate; or 
‘‘(B) preventing any Federal banking 
agency from complying with an order of a court 
of the United States in an action commenced by 
the United States or such agency. 
‘‘(4) FEDERAL BANKING AGENCY DEFINED.—
For purposes of this subsection, the term ‘Federal 
banking agency’ means the Board, the Comptroller, 
the Federal Deposit Insurance Corporation, and the 
Director of the Office of Thrift Supervision.’’. 
SEC. 613. PROHIBITION ON PARTICIPATION BY CONVICTED 
INDIVIDUAL. 
Section 19 of the Federal Deposit Insurance Act (12 
U.S.C. 1829) is amended by inserting after subsection (c) 
(as added by section 603 of this title) the following new 
subsections: 
‘‘(d) BANK HOLDING COMPANIES.—Subsections (a) 
and (b) shall apply to any bank holding company, any sub-
sidiary (other than a bank) of a bank holding company, 
and any organization organized and operated under sec-
tion 25A of the Federal Reserve Act or operating under 
section 25 of the Federal Reserve Act as if such bank
103
holding company, subsidiary, or organization were an in-
sured depository institution, except such subsections shall 
be applied for purposes of this subsection by substituting 
‘Board of Governors of the Federal Reserve System’ for 
‘Corporation’ each place such term appears in such sub-
sections. 
‘‘(e) SAVINGS AND LOAN HOLDING COMPANIES.—
Subsections (a) and (b) shall apply to any savings and 
loan holding company and any subsidiary (other than a 
savings association) of a savings and loan holding com-
pany as if such savings and loan holding company or sub-
sidiary were an insured depository institution, except such 
subsections shall be applied for purposes of this subsection 
by substituting ‘Director of the Office of Thrift Super-
vision’ for ‘Corporation’ each place such term appears in 
such subsections.’’. 
SEC. 614. CLARIFICATION THAT NOTICE AFTER SEPARA-
TION FROM SERVICE MAY BE MADE BY AN 
ORDER. 
(a) IN GENERAL.—Section 8(i)(3) of the Federal De-
posit Insurance Act (12 U.S.C. 1818(i)(3)) is amended by 
inserting ‘‘or order’’ after ‘‘notice’’ each place such term 
appears. 
(b) TECHNICAL AND CONFORMING AMENDMENT.—
The heading for section 8(i)(3) of the Federal Deposit In-
104
surance Act (12 U.S.C. 1818(i)(3)) is amended by insert-
ing ‘‘OR ORDER’’ after ‘‘NOTICE’’. 
SEC. 615. ENFORCEMENT AGAINST MISREPRESENTATIONS 
REGARDING FDIC DEPOSIT INSURANCE COV-
ERAGE. 
(a) IN GENERAL.—Section 18(a) of the Federal De-
posit Insurance Act (12 U.S.C. 1828(a)) is amended by 
adding at the end the following new paragraph: 
‘‘(4) FALSE
ADVERTISING, MISUSE
OF
FDIC 
NAMES, AND MISREPRESENTATION TO INDICATE IN-
SURED STATUS.—
‘‘(A) PROHIBITION
ON
FALSE
ADVER-
TISING AND MISUSE OF FDIC NAMES.—No per-
son may—
‘‘(i) use the terms ‘Federal Deposit’, 
‘Federal Deposit Insurance’, ‘Federal De-
posit Insurance Corporation’, any combina-
tion of such terms, or the abbreviation 
‘FDIC’ as part of the business name or 
firm name of any person, including any 
corporation, partnership, business trust, 
association, or other business entity; or 
‘‘(ii) use such terms or any other sign 
or symbol as part of an advertisement, so-
licitation, or other document,
105
to represent, suggest or imply that any deposit 
liability, obligation, certificate or share is in-
sured or guaranteed by the Federal Deposit In-
surance Corporation, if such deposit liability, 
obligation, certificate, or share is not insured or 
guaranteed by the Corporation. 
‘‘(B) PROHIBITION
ON
MISREPRESENTA-
TIONS OF INSURED STATUS.—No person may 
knowingly misrepresent—
‘‘(i) that any deposit liability, obliga-
tion, certificate, or share is federally in-
sured, if such deposit liability, obligation, 
certificate, or share is not insured by the 
Corporation; or 
‘‘(ii) the extent to which or the man-
ner in which any deposit liability, obliga-
tion, certificate, or share is insured by the 
Federal Deposit Insurance Corporation, if 
such deposit liability, obligation, certificate, 
or share is not insured by the Corporation 
to the extent or in the manner represented. 
‘‘(C) AUTHORITY OF FDIC.—The Corpora-
tion shall have—
106
‘‘(i) jurisdiction over any person that 
violates this paragraph, or aids or abets 
the violation of this paragraph; and 
‘‘(ii) for purposes of enforcing the re-
quirements of this paragraph with regard 
to any person—
‘‘(I) the authority of the Cor-
poration under section 10(c) to con-
duct investigations; and 
‘‘(II) the enforcement authority 
of the Corporation under subsections 
(b), (c), (d) and (i) of section 8, 
as if such person were a state nonmember in-
sured bank. 
‘‘(D) OTHER
ACTIONS
PRESERVED.—No 
provision of this paragraph shall be construed 
as barring any action otherwise available, under 
the laws of the United States or any State, to 
any Federal or State law enforcement agency or 
individual.’’. 
(b) ENFORCEMENT ORDERS.—Section 8(c) of the 
Federal Deposit Insurance Act (12 U.S.C. 1818(c)) is 
amended by adding at the end the following new para-
graph:
107
‘‘(4) FALSE
ADVERTISING
OR
MISUSE
OF 
NAMES TO INDICATE INSURED STATUS.—
‘‘(A) TEMPORARY ORDER.—
‘‘(i) IN
GENERAL.—If a notice of 
charges served under subsection (b)(1) of 
this section specifies on the basis of par-
ticular facts that any person is engaged in 
conduct described in section 18(a)(4), the 
Corporation may issue a temporary order 
requiring—
‘‘(I) the immediate cessation of 
any activity or practice described, 
which gave rise to the notice of 
charges; and 
‘‘(II) affirmative action to pre-
vent any further, or to remedy any ex-
isting, violation. 
‘‘(ii) EFFECT OF ORDER.—Any tem-
porary order issued under this subpara-
graph shall take effect upon service. 
‘‘(B) EFFECTIVE PERIOD OF TEMPORARY 
ORDER.—A temporary order issued under sub-
paragraph (A) shall remain effective and en-
forceable, pending the completion of an admin-
istrative proceeding pursuant to subsection
108
(b)(1) in connection with the notice of 
charges—
‘‘(i) until such time as the Corpora-
tion shall dismiss the charges specified in 
such notice; or 
‘‘(ii) if a cease-and-desist order is 
issued against such person, until the effec-
tive date of such order. 
‘‘(C) CIVIL MONEY PENALTIES.—Violations 
of section 18(a)(4) shall be subject to civil 
money penalties as set forth in subsection (i) in 
an amount not to exceed $1,000,000 for each 
day during which the violation occurs or con-
tinues.’’. 
(c) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Section 18(a)(3) of the Federal Deposit In-
surance Act (12 U.S.C. 1828(a)) is amended—
(A) in the 1st sentence by striking ‘‘of this 
subsection’’ and inserting ‘‘of paragraphs (1) 
and (2)’’; 
(B) by striking the 2nd sentence; and 
(C) in the 3rd sentence, by striking ‘‘of 
this subsection’’ and inserting ‘‘of paragraphs 
(1) and (2)’’.
109
(2) The heading for subsection (a) of section 18 
of the Federal Deposit Insurance Act (12 U.S.C. 
1828(a)) is amended by striking ‘‘INSURANCE 
LOGO.—’’ and inserting ‘‘REPRESENTATIONS
OF 
DEPOSIT INSURANCE.—’’. 
SEC. 616. CHANGES REQUIRED TO SMALL BANK HOLDING 
COMPANY POLICY STATEMENT ON ASSESS-
MENT OF FINANCIAL AND MANAGERIAL FAC-
TORS. 
(a) SMALL
BANK
HOLDING
COMPANY
POLICY 
STATEMENT ON ASSESSMENT OF FINANCIAL AND MANA-
GERIAL FACTORS.—
(1) IN GENERAL.—Before the end of the 6-
month period beginning on the date of the enact-
ment of this Act, the Board of Governors of the 
Federal Reserve System shall publish in the Federal 
Register proposed revisions to the Small Bank Hold-
ing Company Policy Statement on Assessment of Fi-
nancial and Managerial Factors (12 C.F.R. part 
225—appendix C) that provide that the policy shall 
apply to a bank holding company which has pro 
forma 
consolidated 
assets 
of 
less 
than 
$1,000,000,000 and that—
(A) is not engaged in any nonbanking ac-
tivities involving significant leverage; and
110
(B) does not have a significant amount of 
outstanding debt that is held by the general 
public. 
(2) ADJUSTMENT OF AMOUNT.—The Board of 
Governors of the Federal Reserve System shall an-
nually adjust the dollar amount referred to in para-
graph (1) in the Small Bank Holding Company Pol-
icy Statement on Assessment of Financial and Man-
agerial Factors by an amount equal to the percent-
age increase, for the most recent year, in total assets 
held by all insured depository institutions, as deter-
mined by the Board. 
(b) INCREASE IN DEBT-TO-EQUITY RATIO OF SMALL 
BANK HOLDING COMPANY.—Before the end of the 6-
month period beginning on the date of the enactment of 
this Act, the Board of Governors of the Federal Reserve 
System shall publish in the Federal Register proposed re-
visions to the Small Bank Holding Company Policy State-
ment on Assessment of Financial and Managerial Factors 
(12 C.F.R. part 225—appendix C) such that the debt-to-
equity ratio allowable for a small bank holding company 
in order to remain eligible to pay a corporate dividend and 
to remain eligible for expedited processing procedures 
under Regulation Y of the Board of Governors of the Fed-
eral Reserve System would increase from 1:1 to 3:1.
111
SEC. 617. EXCEPTION TO ANNUAL PRIVACY NOTICE RE-
QUIREMENT UNDER THE GRAMM-LEACH-BLI-
LEY ACT. 
Section 503 of the Gramm-Leach-Bliley Act (15 
U.S.C. 6803) is amended by adding the following new sub-
section: 
‘‘(c) EXCEPTION
TO ANNUAL NOTICE REQUIRE-
MENT.—A financial institution that—
‘‘(1) provides nonpublic personal information 
only in accordance with the provisions of subsection 
(b)(2) or (e) of section 502 or regulations prescribed 
under section 504(b); 
‘‘(2) does not share information with affiliates 
under section 603(d)(2)(A) of the Fair Credit Re-
porting Act; and 
‘‘(3) has not changed its policies and practices 
with regard to disclosing nonpublic personal infor-
mation from the policies and practices that were dis-
closed in the most recent disclosure sent to con-
sumers in accordance with this subsection, 
shall not be required to provide an annual disclosure under 
this subsection until such time as the financial institution 
fails to comply with any criteria described in paragraph 
(1), (2), or (3).’’.
112
SEC. 618. BIENNIAL REPORTS ON THE STATUS OF AGENCY 
EMPLOYMENT OF MINORITIES AND WOMEN. 
(a) IN GENERAL.—Before December 31, 2005, and 
the end of each 2-year period beginning after such date, 
each Federal banking agency shall submit a report to the 
Congress on the status of the employment by the agency 
of minority individuals and women. 
(b) FACTORS TO BE INCLUDED.—The report shall 
include a detailed assessment of each of the following: 
(1) The extent of hiring of minority individuals 
and women by the agency as of the time the report 
is prepared. 
(2) The successes achieved and challenges faced 
by the agency in operating minority and women out-
reach programs. 
(3) Challenges the agency may face in finding 
qualified minority individual and women applicants. 
(4) Such other information, findings, and con-
clusions, and recommendations for legislative or 
agency action, as the agency may determine to be 
appropriate to include in the report. 
(c) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
(1) FEDERAL
BANKING
AGENCY.—The term 
‘‘Federal banking agency’’—
113
(A) has the same meaning as in section 
3(z) of the Federal Deposit Insurance Act; and 
(B) includes the National Credit Union 
Administration. 
(2) MINORITY.—The term ‘‘minority’’ has the 
same meaning as in section 1204(c)(3) of the Finan-
cial Institutions Reform, Recovery, and Enforcement 
Act of 1989. 
SEC. 619. COORDINATION OF STATE EXAMINATION AU-
THORITY. 
Section 10(h) of the Federal Deposit Insurance Act 
(12 U.S.C. 1820(h)) is amended to read as follows: 
‘‘(h) COORDINATION
OF EXAMINATION AUTHOR-
ITY.—
‘‘(1) STATE BANK SUPERVISORS OF HOME AND 
HOST STATES .—
‘‘(A) HOME STATE OF BANK.—The appro-
priate State bank supervisor of the home State 
of an insured State bank has authority to ex-
amine and supervise the bank. 
‘‘(B) HOST STATE BRANCHES.—The State 
bank supervisor of the home State of an in-
sured State bank and any State bank super-
visor of an appropriate host State shall exercise 
their respective authority to supervise and ex-
114
amine the branches of the bank in a host State 
in accordance with the terms of any applicable 
cooperative agreement between the home State 
bank supervisor and the State bank supervisor 
of the relevant host State. 
‘‘(C) SUPERVISORY FEES.—Except as ex-
pressly provided in a cooperative agreement be-
tween the State bank supervisors of the home 
State and any host State of an insured State 
bank, only the State bank supervisor of the 
home State of an insured State bank may levy 
or charge State supervisory fees on the bank. 
‘‘(2) HOST STATE EXAMINATION.—
‘‘(A) IN
GENERAL.—With respect to a 
branch operated in a host State by an out-of-
State insured State bank that resulted from an 
interstate merger transaction approved under 
section 44 or that was established in such State 
pursuant to section 5155(g) of the Revised 
Statutes, the third undesignated paragraph of 
section 9 of the Federal Reserve Act or section 
18(d)(4) of this Act, the appropriate State bank 
supervisor of such host State may—
‘‘(i) with written notice to the State 
bank supervisor of the bank’s home State