I
104TH CONGRESS
1ST SESSION
H. R. 17
To establish the Federal Bank Agency, to abolish the positions of the Comp-
troller of the Currency and Director of the Office of Thrift Supervision,
to consolidate and reform the regulation of insured depository institu-
tions, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 4, 1995
Mr. LEACH introduced the following bill; which was referred to the Committee
on Banking and Financial Services
A BILL
To establish the Federal Bank Agency, to abolish the posi-
tions of the Comptroller of the Currency and Director
of the Office of Thrift Supervision, to consolidate and
reform the regulation of insured depository institutions,
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; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Bank Regulatory Consolidation and Reform Act of
1995’’.
(b) TABLE OF CONTENTS.—
Sec. 1. Short title; table of contents.
TITLE I—FEDERAL BANK AGENCY
Sec. 101. Establishment of the Agency.
Sec. 102. Definitions.
Sec. 103. Administrator of the Federal Bank Agency.
Sec. 104. Authority of the Administrator.
Sec. 105. Personnel.
Sec. 106. Regulations and orders.
Sec. 107. Funding.
TITLE II—INTERIM PROVISIONS; TRANSFER OF FUNCTIONS,
PERSONNEL, AND PROPERTY
Sec. 201. Interim provisions for the Federal Bank Agency.
Sec. 202. Office of Thrift Supervision abolished.
Sec. 203. Office of the Comptroller of the Currency abolished.
Sec. 204. References in Federal law to Federal banking agencies.
TITLE III—REGULATORY AND SUPERVISORY RESPONSIBILITY
Sec. 301. Transfer of powers and duties.
Sec. 302. Appropriate Federal banking agency.
TITLE IV—FEDERAL DEPOSIT INSURANCE CORPORATION
AMENDMENTS
Sec. 401. Amendments to the Federal Deposit Insurance Act.
TITLE V—REORGANIZATION OF BOARDS OF DIRECTORS
Sec. 501. Federal Deposit Insurance Corporation Board of Directors.
Sec. 502. Amendments to the Federal Reserve Act.
Sec. 503. Amendment to the Bank Holding Company Act of 1956.
Sec. 504. Amendment to the Bank Holding Company Amendments Act of
1970.
TITLE VI—REGULATORY UNIFORMITY
Sec. 601. Amendments relating to the Financial Institutions Examination
Council.
TITLE VII—CREDIT UNIONS
Sec. 701. Comparable supervisory standards for credit unions.
TITLE I—FEDERAL BANK
AGENCY
SEC. 101. ESTABLISHMENT OF THE AGENCY.
Effective January 1, 1996, there shall be established
the Federal Bank Agency which shall be an independent
establishment.
SEC. 102. DEFINITIONS.
The following definitions shall apply for purposes of
this title:
(1) The term ‘‘Administrator’’ means the Ad-
ministrator of the Federal Bank Agency.
(2) The term ‘‘Agency’’ means the Federal
Bank Agency.
(3) The term ‘‘Secretary’’ means the Secretary
of the Treasury.
SEC. 
103. 
ADMINISTRATOR 
OF 
THE 
FEDERAL 
BANK
AGENCY.
(a) IN GENERAL.—The Agency shall have an Admin-
istrator who shall be the head of the Agency.
(b) APPOINTMENT.—The Administrator shall be ap-
pointed by the President, by and with the advice and con-
sent of the Senate, from among individuals who are
citizens of the United States.
(c) TERM.—The Administrator shall be appointed for
a term of 5 years.
(d) VACANCY.—A vacancy in the position of Adminis-
trator which occurs before expiration of the term for which
an Administrator was appointed shall be filled in the man-
ner established in subsection (b), and the Administrator
appointed to fill such vacancy shall be appointed only for
the remainder of said term.
(e) SERVICE AFTER END OF TERM.—An individual
may serve as Administrator after the expiration of the
term for which appointed until a successor Administrator
has been appointed.
(f) DEPUTY ADMINISTRATORS.—
(1) DEPUTY
ADMINISTRATOR
OF
THE
AGEN-
CY.—
(A) IN GENERAL.—The Agency shall have
a Deputy Administrator who shall be appointed
by the President, by and with the advice and
consent of the Senate.
(B) DUTIES AND POWERS.—The Deputy
Administrator shall—
(i) perform such duties and exercise
such powers as the Administrator may pre-
scribe; and
(ii) exercise the duties and powers of
the Administrator when the Administrator
(2) NO
NET
COST
TO
GOVERNMENT.—The
amount of any assessment, fee, or other charge shall
be not less than the amount necessary to meet the
full cost to the Federal Government of the service
provided by the Agency.
(b) USE OF FUNDS.—The Administrator may use the
funds obtained through assessments, fees, and other
charges imposed pursuant to this title to pay the full cost
to the Federal Government of the services provided by the
Agency.
(c) AGENCY NOT SUBJECT TO APPORTIONMENT OF
FUNDS.—Notwithstanding any other provision of law,
amounts received by the Agency pursuant to any assess-
ment, fee, or other charge imposed under this Act or any
other provision of law and any other money received by
the Agency shall not be subject to apportionment for the
purpose of chapter 15 of title 31, United States Code, or
under any other authority.
(d) TECHNICAL AND CONFORMING AMENDMENT RE-
LATING TO SEQUESTRATION.—Paragraph (1) of section
255(g) of the Balanced Budget and Emergency Deficit
Control Act of 1985 is amended—
(1) by striking the items relating to the Comp-
troller of the Currency and the Director of the Of-
fice of Thrift Supervision; and
(2) by inserting after the item relating to
the Farm Credit System Financial Assistance Cor-
poration, interest payment (20–1850–0–1–351) the
following new item:
‘‘Federal Bank Agency;’’.
(e) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall take effect on Jan-
uary 1, 1997.
TITLE II—INTERIM PROVISIONS;
TRANSFER 
OF 
FUNCTIONS,
PERSONNEL, AND PROPERTY
SEC. 201. INTERIM PROVISIONS FOR THE FEDERAL BANK
AGENCY.
(a) INTERIM AUTHORITY OF THE ADMINISTRATOR.—
Prior to the date upon which the functions of the Office
of the Comptroller of the Currency and the Office of
Thrift Supervision are transferred to the Administrator
pursuant to this Act, the Administrator shall—
(1) consult and cooperate with the Director of
the Office of Thrift Supervision and the Comptroller
of the Currency to facilitate the orderly transfer of
functions to the Office; and
(2) take such actions as may be necessary to
provide for the establishment of the Agency and for
the orderly implementation of this title.
(b) INTERIM STAFF.—Prior to the date upon which
the Office of the Comptroller of the Currency and the Of-
fice of Thrift Supervision are abolished, each such Office
shall detail to the Agency such personnel as the Adminis-
trator deems appropriate to assist the Administrator in
carrying out the duties of title I.
(c) INTERIM ADMINISTRATIVE SERVICES.—The Sec-
retary may provide all administrative services necessary
to support the Agency prior to the date upon which the
Office of the Comptroller of the Currency and the Office
of Thrift Supervision are abolished, and obtain reimburse-
ment for the cost of such services pursuant to subsection
(d).
(d) INTERIM FUNDING.—Prior to the date upon
which the Office of the Comptroller of the Currency and
the Office of Thrift Supervision are abolished, each such
Office shall pay to the Secretary one-half of the total
amount determined by the Secretary to be necessary to
fund all direct and indirect salary and administrative ex-
penses of the Agency, including the salary of the Adminis-
trator, through January 1, 1997, from the funds obtained
by such Offices through assessments, fees, and other
charges which they are authorized to impose by law. The
Secretary may credit to an appropriation and spend
amounts received pursuant to this subsection. Upon the
appointment of the Administrator, the amounts paid to
the Secretary under this subsection shall be paid by the
Secretary to the Administrator.
(e) INTERIM AUTHORITY OF THE SECRETARY.—The
Secretary is authorized to perform the functions of the
Administrator under this section until the Administrator
is appointed.
(f) MERGER OF TRANSFERRED EMPLOYEES.—The
Administrator shall, to the maximum extent practicable,
merge and consolidate the work force structures of the Of-
fice of the Comptroller of the Currency and the Office of
Thrift Supervision. In merging the work forces, the Ad-
ministrator shall establish procedures which take into ac-
count the job experience of, and the compensation and
benefits provided to, the transferred employees at the
prior agency.
(g) EFFECTIVE DATE.—This section shall take effect
on January 1, 1996.
SEC. 202. OFFICE OF THRIFT SUPERVISION ABOLISHED.
(a) OFFICE OF THRIFT SUPERVISION ABOLISHED.—
Effective January 1, 1997, the Office of Thrift Super-
vision and the position of Director of the Office of Thrift
Supervision are hereby abolished.
(b) DISPOSITION OF AFFAIRS.—
(1) IN GENERAL.—In winding up the affairs of
the Office of Thrift Supervision, the Director of the
Office of Thrift Supervision shall consult and co-
operate with the Administrator of the Agency and
the Comptroller of the Currency to facilitate the or-
derly transfer of the functions to the Agency. Any
matter not resolved pursuant to such consultation
and cooperation shall be resolved by the Secretary.
(2) CONTINUING AUTHORITY OF DIRECTOR OF
THE OFFICE OF THRIFT SUPERVISION.—Except as
provided in paragraph (1) and section 201, nothing
in this title shall affect the authority vested in the
Director of the Office of Thrift Supervision before
the date of enactment of this Act which is necessary
to carry out the duties of the position until the date
upon which the position of Director of the Office of
Thrift Supervision is abolished.
(3) CONTINUATION
OF
AGENCY
SERVICES.—
Any agency, department, or other instrumentality of
the United States, or any successor to any such
agency, department, or instrumentality, which was
providing support services to the Office of Thrift Su-
pervision on the day before the date the Office of
Thrift Supervision is abolished shall—
(A) continue to provide such services on a
reimbursable basis, in accordance with the
terms of the arrangement pursuant to which
such services were provided until the arrange-
ment is modified or terminated in accordance
with such terms, except that effective Jan-
uary 1, 1997, the Agency shall be substituted
for the Office of Thrift Supervision as a party
to the arrangement; and
(B) consult with the Administrator to co-
ordinate and facilitate a prompt and reasonable
transition.
(c) SAVINGS PROVISIONS.—
(1) EXISTING RIGHTS, DUTIES, AND OBLIGA-
TIONS NOT AFFECTED.—No provision of this title
shall affect the validity of any right, duty, or obliga-
tion of the United States, the Office of Thrift Super-
vision, or any person, which existed on the day
before the date upon which the Office of Thrift
Supervision is abolished.
(2) CONTINUATION
OF
SUITS.—No action or
other proceeding commenced by or against the Office
of Thrift Supervision shall abate by reason of enact-
ment of this Act, except that, effective January 1,
1997, the Administrator shall be substituted as a
party to any such action or proceeding.
(3) 
CONTINUATION
OF
ADMINISTRATIVE
RULES.—All orders, resolutions, determinations, reg-
ulations, interpretative rules, other interpretations,
guidelines, procedures, and other advisory material
which—
(A) have been issued, made, prescribed, or
permitted to become effective by the Office of
Thrift Supervision, and
(B) are in effect on December 31, 1996,
(or become effective after such date pursuant to
the terms of the order, resolution, determina-
tion, rule, other interpretation, guideline, proce-
dure, and other advisory material, as in effect
on such date), shall—
(i) continue in effect according to the
terms of such orders, resolutions, deter-
minations, regulations, interpretative rules,
other interpretations, guidelines, proce-
dures, or other advisory material;
(ii) be administered by the Adminis-
trator; and
(iii) be enforceable by or against the
Administrator until modified, terminated,
set aside, or superseded in accordance with
applicable law by the Administrator, by
any court of competent jurisdiction, or by
operation of law.
(d) TRANSFER OF PROPERTY.—Effective January 1,
1997, all property of the Office of Thrift Supervision shall
be transferred to the Agency.
SEC. 203. OFFICE OF THE COMPTROLLER OF THE CUR-
RENCY ABOLISHED.
(a) OFFICE OF THE COMPTROLLER OF THE CUR-
RENCY ABOLISHED.—Effective January 1, 1997, the Of-
fice of the Comptroller of the Currency and the position
of the Comptroller of the Currency are abolished.
(b) DISPOSITION OF AFFAIRS.—
(1) IN GENERAL.—In winding up the affairs of
the Office of the Comptroller of the Currency, the
Comptroller of the Currency shall consult and co-
operate with the Administrator of the Federal Bank
Agency and the Director of the Office of Thrift Su-
pervision to facilitate the orderly transfer of func-
tions to the Agency. Any matter not resolved pursu-
ant to such consultation and cooperation shall be
resolved by the Secretary.
(2) CONTINUING
AUTHORITY
OF
THE
COMP-
TROLLER OF THE CURRENCY.—Except as provided
in paragraph (1) and section 201, nothing in this
Act shall affect the authority vested in the Comp-
troller of the Currency before the date of enactment
of this Act which is necessary to carry out the duties
of the position until the date upon which the
position of Comptroller is abolished.
(3) CONTINUATION
OF
AGENCY
SERVICES.—
Any agency, department, or other instrumentality of
the United States, or any successor to any such
agency, department, or instrumentality, which was
providing support services to the Office of the Comp-
troller of the Currency on the day before the date
the Office of the Comptroller of the Currency is
abolished shall—
(A) continue to provide such services, on a
reimbursable basis, in accordance with the
terms of the arrangement pursuant to which
such services were provided until the arrange-
ment is modified or terminated in accordance
with such terms, except that effective Jan-
uary 1, 1997, the Agency shall be substituted
for the Office of the Comptroller of the Cur-
rency as a party to the arrangement; and
(B) consult with the Administrator to co-
ordinate and facilitate a prompt and reasonable
transition.
(c) SAVINGS PROVISIONS.—
(1) EXISTING RIGHTS, DUTIES, AND OBLIGA-
TIONS NOT AFFECTED.—No provision of this title
shall affect the validity of any right, duty, or obliga-
tion of the United States, the Office of the Comp-
troller of the Currency, or any person, which existed
on the day before the date upon which the Office of
the Comptroller of the Currency is abolished by this
title.
(2) CONTINUATION
OF
SUITS.—No action or
other proceeding commenced by or against the
Comptroller of the Currency or the Office of the
Comptroller of the Currency shall abate by reason of
enactment of this Act, except that effective Jan-
uary 1, 1997, the Administrator shall be substituted
as a party to any such action or proceeding.
(3) 
CONTINUATION
OF
ADMINISTRATIVE
RULES.—All orders, resolutions, determinations, reg-
ulations, interpretative rules, other interpretations,
guidelines, procedures, and other advisory material
which—
(A) have been issued, made, prescribed, or
permitted to become effective by the Comptrol-
ler of the Currency; and
(B) are in effect on December 31, 1996,
(or become effective after such date pursuant to
the terms of the order, resolution, determina-
tion, rule, other interpretation, guideline, proce-
dure, and other advisory material, as in effect
on such date) shall—
(i) continue in effect according to the
terms of such orders, resolutions, deter-
minations, regulations, interpretative rules,
guidelines, procedures or other advisory
material;
(ii) be administered by the Adminis-
trator; and
(iii) be enforceable by or against the
Administrator until modified, terminated,
set aside, or superseded in accordance with
applicable law by the Administrator, by
any court of competent jurisdiction, or by
operation of law.
(d) TRANSFER OF PROPERTY.—Effective January 1,
1997, all property of the Office of the Comptroller of the
Currency shall be transferred to the Agency.
SEC. 204. REFERENCES IN FEDERAL LAW TO FEDERAL
BANKING AGENCIES.
Any reference in any Federal law to the Comptroller
of the Currency, the Office of the Comptroller of the Cur-
rency, the Director of the Office of Thrift Supervision, or
the Office of Thrift Supervision shall be deemed to be a
reference to the appropriate Federal banking agency (as
defined in section 3(q) of the Federal Deposit Insurance
Act).
TITLE III—REGULATORY AND
SUPERVISORY RESPONSIBILITY
SEC. 301. TRANSFER OF POWERS AND DUTIES.
(a) DIRECTOR OF THE OFFICE OF THRIFT SUPER-
VISION.—Effective January 1, 1997, all powers and duties
which were vested in the Director of the Office of Thrift
Supervision on December 31, 1996, are transferred to the
Administrator, except as otherwise provided in this Act.
(b) COMPTROLLER OF THE CURRENCY.—Effective
January 1, 1997, all powers and duties which were vested
in the Comptroller of the Currency on December 31, 1996,
are transferred to the Administrator, except as otherwise
provided in this Act.
SEC. 302. APPROPRIATE FEDERAL BANKING AGENCY.
(a) Section 3(q) of the Federal Deposit Insurance Act
(12 U.S.C. 1813(q)) is amended to read as follows:
‘‘(q) APPROPRIATE FEDERAL BANKING AGENCY.—
‘‘(1) IN GENERAL.—The term ‘appropriate Fed-
eral banking agency’ means—
‘‘(A) the Administrator of the Federal
Bank Agency in the case of—
‘‘(i) a Federal depository institution
and any subsidiary of any Federal deposi-
tory institution, other than—
‘‘(I) a subsidiary chartered or
regulated by the Board of Governors
of the Federal Reserve System under
section 25 or 25A of the Federal
Reserve Act; or
‘‘(II) a depository institution sub-
sidiary of a depository institution
holding company for which the Fed-
eral Deposit Insurance Corporation or
the Board of Governors of the Federal
Reserve System is the appropriate
Federal banking agency;
‘‘(ii) a District bank chartered by the
Administrator, other than a depository in-
stitution subsidiary described in clause (i);
‘‘(iii) a Federal agency of a foreign
bank other than an agency regulated by
the Board of Governors of the Federal Re-
serve System;
‘‘(iv) a savings and loan holding com-
pany the principal depository institution
subsidiary of which is a Federal savings
association and each affiliate of such com-
pany, including each depository institution
subsidiary of such company; and
‘‘(v) a bank holding company—
‘‘(I) which has total consolidated
depository institution assets of less
than $25,000,000,000; and
‘‘(II) the principal depository in-
stitution subsidiary of which is a
Federal depository institution or a
District bank,
and each affiliate of such company, includ-
ing each depository institution subsidiary
of such company;
‘‘(B) the Federal Deposit Insurance Cor-
poration in the case of—
‘‘(i) a State depository institution (ex-
cept a District bank), other than a State
member bank or a depository institution
subsidiary of a depository institution hold-
ing company for which the Federal Bank
Agency or the Board of Governors of the
Federal Reserve System is the appropriate
Federal banking agency;
‘‘(ii) a foreign bank which—
‘‘(I) operates an insured branch;
and
‘‘(II) has total worldwide assets
of less than $25,000,000,000;
‘‘(iii) a bank holding company—
‘‘(I) which has total consolidated
depository institution assets of less
than $25,000,000,000; and
‘‘(II) the principal depository in-
stitution subsidiary of which is a
State depository institution (except a
District bank) which is not a State
member bank,
and each affiliate of such company, includ-
ing each depository institution subsidiary
of such company; and
‘‘(iv) a savings and loan holding com-
pany the principal depository institution
subsidiary of which is a State savings asso-
ciation and each affiliate of such company,
including each depository institution sub-
sidiary of such company; and
‘‘(C) the Board of Governors of the
Federal Reserve System in the case of—
‘‘(i) a State member bank, other than
a depository institution subsidiary of a de-
pository institution holding company for
which the Federal Bank Agency or the
Federal Deposit Insurance Corporation is
the appropriate Federal banking agency;
‘‘(ii) any branch or agency of a for-
eign bank with respect to any provision of
the Federal Reserve Act which is made ap-
plicable under the International Banking
Act of 1978,
‘‘(iii) any foreign bank which does not
operate an insured branch,
‘‘(iv) any agency or commercial lend-
ing company other than a Federal agency,
‘‘(v) supervisory or regulatory pro-
ceedings arising from the authority given
to the Board of Governors under section
7(c)(1) of the International Banking Act of
1978, including such proceedings under
the Depository Institutions Supervisory
Act;
‘‘(vi) any bank holding company which
has total consolidated depository institu-
tion assets equal to or greater than
$25,000,000,000 or foreign bank with
worldwide assets equal to or greater than
$25,000,000,000, and each affiliate of
such company, including each depository
institution subsidiary of such company;
and
‘‘(vii) any bank holding company—
‘‘(I) which has total consolidated
depository institution assets of less
than $25,000,000,000; and
‘‘(II) the principal depository in-
stitution subsidiary of which is a
State member bank,
and each affiliate of such company, includ-
ing each depository institution subsidiary
of such company.
‘‘(2) CONSOLIDATED
ASSETS
DEFINED.—For
purposes of this subsection, the term ‘consolidated
depository institution assets’ means, with respect to
any calendar year, the total assets of all insured de-
pository institutions controlled by a depository insti-
tution holding company on average for the last day
of each quarter of the preceding calendar year;
‘‘(3) DETERMINATION OF PRINCIPAL DEPOSI-
TORY INSTITUTION SUBSIDIARY.—
‘‘(A) PRINCIPAL DEPOSITORY INSTITUTION
SUBSIDIARY DEFINED.—The term ‘principal de-
pository institution subsidiary’ means, with re-
spect to any year—
‘‘(i) the depository institution subsidi-
ary of a bank holding company that has
the greatest dollar amount of assets, on av-
erage, as of the last day of each quarter of
the preceding calendar year; and
‘‘(ii) in the case of a foreign bank that
is a bank holding company, the depository
institution, branch, agency, or commercial
lending company controlled or operated by
a foreign bank in the United States that
has the greatest dollar amount of assets,
on average, as of the last day of each
quarter of the preceding calendar year.
‘‘(B) RULE IN CASE OF MULTIPLE DEPOSI-
TORY INSTITUTION SUBSIDIARIES OF SIMILAR
SIZE.—If a depository institution holding com-
pany controls 2 or more depository institutions
which have substantially equal dollar amounts
of assets and such depository institutions are
not regulated by the same Federal banking
agency, the principal depository institution sub-
sidiary, for purposes of this subsection, shall be
the depository institution which has the great-
est dollar amount of deposits, on average, for
the last day of each quarter of the preceding
calendar year.
‘‘(4) CALCULATIONS.—All determinations re-
garding equity capital or assets, as appropriate, shall
be made based upon those amounts on the last day
of each of the four quarters over the preceding
calendar year.
‘‘(5) EVALUATION.—The appropriate Federal
banking agency shall evaluate the principal bank
subsidiary and the consolidated assets of the deposi-
tory institution holding company, as the cases may
be, as defined in paragraphs (1), (2), and (3) by
January 1, 1997, and every 5 years thereafter for
the purpose of determining whether a transfer to the
other appropriate Federal banking agency is
necessary.
‘‘(6) TRANSFER.—
‘‘(A) IN GENERAL.—In any case in which
the appropriate Federal banking agency has
changed after evaluation, notice shall be given
to the new appropriate Federal banking agency
within 30 days after evaluation.
‘‘(B) EXAMINATION
AND
OTHER
RE-
PORTS.—A copy of the examination reports and
any other reports required to be filed by the
depository institution holding company pursu-
ant to the Bank Holding Company Act of 1956
or section 10 of the Home Owners’ Loan Act
for the prior 2 years shall be provided to the
new appropriate Federal banking agency when
notice is provided to such agency.
‘‘(C) REGULATION
AND
SUPERVISION.—
Regulation and supervision of the depository in-
stitution holding company shall be transferred
to the new appropriate Federal banking agency
no later than 90 days after notice has been
provided.
‘‘(7) COST-OF-LIVING ADJUSTMENT.—
‘‘(A) IN
GENERAL.—Paragraph (1) shall
be applied in any year beginning after Decem-
ber 
31, 
1996, 
by 
increasing 
the
$25,000,000,000 amount in any subparagraph
of such paragraph by the cost-of-living adjust-
ment for the year.
‘‘(B) COST-OF-LIVING ADJUSTMENT.—For
purposes of subparagraph (A), the cost-of-living
adjustment for any year is the percentage, if
any, by which—
‘‘(i) the CPI for the preceding year,
exceeds the CPI for 1995.
‘‘(C) CPI FOR ANY YEAR.—For purposes
of subparagraph (B), the CPI for any year is
the average of the last Consumer Price Index
for all-urban consumers published by the De-
partment of Labor during the 12-month period
ending on August 31 of such year.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect on January 1, 1997.
TITLE 
IV—FEDERAL 
DEPOSIT
INSURANCE 
CORPORATION
AMENDMENTS
SEC. 401. AMENDMENTS TO THE FEDERAL DEPOSIT INSUR-
ANCE ACT.
(a) AMENDMENTS TO SECTION 18 OF THE FEDERAL
DEPOSIT INSURANCE ACT.—Section 18 of the Federal
Deposit Insurance Act (12 U.S.C. 1828) is amended—
(1) in subsection (c)—
(A) by striking ‘‘responsible agency’’ each
place such term appears and inserting ‘‘appro-
priate Federal banking agency’’;
(B) by striking ‘‘responsible agencies’’ each
place such term appears and inserting ‘‘appro-
priate Federal banking agencies’’;
(C) by striking ‘‘the other two banking
agencies referred to in this subsection’’ each
place such term appears and inserting ‘‘the
other appropriate Federal banking agency’’;
(D) by striking ‘‘the other two banking
agencies’’ each place such term appears and in-
serting ‘‘the other appropriate Federal banking
agency’’;
(E) in paragraph (2), by striking ‘‘written
approval’’ and all that appears after such term
in such paragraph and inserting ‘‘written ap-
proval of the appropriate Federal banking
agency for the acquiring, assuming, or resulting
institution.’’; and
(F) by striking subparagraph (B) of para-
graph (2) and redesignating subsequent sub-
paragraphs accordingly;
(2) in subsection (g), by striking ‘‘Adminis-
trator of the Office of Thrift Supervision’’ each place
such term appears and inserting ‘‘Administrator of
the Federal Bank Agency’’; and
(3) in subsection (i)(2), by striking ‘‘written
consent’’ and all that appears after such term in
such paragraph and inserting ‘‘written consent of
the appropriate Federal banking agency for the
acquiring, assuming or resulting institution.’’.
(b) AMENDMENTS TO SECTION 44.—Section 44 of the
Federal Deposit Insurance Act (12 U.S.C. 1831u) is
amended—
(1) by striking ‘‘responsible agency’’ each place
such term appears and inserting ‘‘appropriate Fed-
eral banking agency’’;
(2) in subsection (f), by striking paragraph (10)
and redesignating paragraph (11) as paragraph
(10).
TITLE V—REORGANIZATION OF
BOARDS OF DIRECTORS
SEC. 501. FEDERAL DEPOSIT INSURANCE CORPORATION
BOARD OF DIRECTORS.
(a) REORGANIZATION.—Section 2 of the Federal
Deposit Insurance Act (12 U.S.C. 1812) is amended—
(1) by striking ‘‘Comptroller of the Currency’’
each place such term appears and inserting ‘‘Admin-
istrator of the Federal Bank Agency’’;
(2) by striking ‘‘Director of the Office of Thrift
Supervision’’ each place such term appears and in-
serting ‘‘Chairman of the Board of Governors of the
Federal Reserve System or a Governor of the Board
of Governors of the Federal Reserve System dele-
gated by the Chairman of the Board of Governors’’;
and
(3) in subsection (a), by striking paragraph (2).
(b) CONFORMING AMENDMENT TO THE FEDERAL
RESERVE ACT.—Section 11(k) of the Federal Reserve Act
(12 U.S.C. 248(k)) is amended by adding at the end there-
of the following: ‘‘The Chairman may delegate the author-
ity of the Chairman to serve as a member of the Board
of Directors of the Federal Deposit Insurance Corporation
to any other member of the Board.’’.
(c) EFFECTIVE DATE.—The amendments made by
this subsection shall take effect on January 1, 1997.
SEC. 502. AMENDMENTS TO THE FEDERAL RESERVE ACT.
(a) The 7th undesignated paragraph of section 9 of
the Federal Reserve Act (12 U.S.C. 325) is amended to
read as follows:
‘‘(7) As a condition of membership, such banks
shall be subject to examinations made by the appro-
priate Federal banking agency (as defined in section
3(q) of the Federal Deposit Insurance Act).’’.
(b) The 8th undesignated paragraph of section 9 of
the Federal Reserve Act (12 U.S.C. 326) is amended by
striking ‘‘Whenever’’ and all that follows through ‘‘; Pro-
vided, however, That’’ and inserting ‘‘Whenever the appro-
priate Federal banking agency (as defined in section 3(q)
of the Federal Deposit Insurance Act) shall approve the
examinations made by the State authorities, such exami-
nations and the examination reports may be accepted in
lieu of examinations made by the appropriate Federal
banking agency:’’.
(c) The 13th undesignated paragraph of section 9 of
the Federal Reserve Act (12 U.S.C. 330) is amended by
striking the 1st sentence and inserting the following new
sentence: ‘‘Banks which become members of the Federal
Reserve System under authority of this section shall be
subject to the provisions of this section and to the provi-
sions of this Act which relate specifically to member
banks, and shall subject to examination by their appro-
priate Federal banking agency (as defined in section 3(q)
of the Federal Deposit Insurance Act)’’.
(d) The 16th undesignated paragraph of section 9 of
the Federal Reserve Act (12 U.S.C. 333) is amended, in
the 1st sentence, by inserting ‘‘, by the appropriate Fed-
eral banking agency (as defined in section 3(q) of the
Federal Deposit Insurance Act)’’ after ‘‘examination’’.
(e) The 22d undesignated paragraph of section 9 of
the Federal Reserve Act (12 U.S.C. 338) is amended to
read as follows:
‘‘(22) In connection with examinations of State
member banks, examiners selected or approved by
the appropriate Federal banking agency (as defined
in section 3(q) of the Federal Deposit Insurance
Act) shall make such examinations of the affairs of
all affiliates of such bank as shall be necessary to
disclose fully the relations between such banks and
their affiliates and the effect of such relations upon
the affairs of such banks. The expense of examina-
tion of affiliates of any State member bank may, in
the discretion of the appropriate Federal regulator,
be assessed against such bank and when so assessed,
shall be paid by such bank to the appropriate Fed-
eral regulator. In the event of the refusal to give any
information requested in the course of the examina-
tion of any such affiliate, or in the event of the re-
fusal to permit such examination, or in the event of
the refusal to pay any expense so assessed, the ap-
propriate Federal regulator shall inform the Board
of Governors of the Federal Reserve System of such
refusal. The Board of Governors of the Federal Re-
serve System may, in its discretion, require any or
all State member banks affiliated with such affiliate
to surrender their stock in the Federal reserve bank
and to forfeit all rights and privileges of membership
in the Federal Reserve System, as provided in this
section.’’.
(f) This section and the amendments made by this
section shall take effect on January 1, 1997.
SEC. 503. AMENDMENT TO THE BANK HOLDING COMPANY
ACT OF 1956.
(a) SUBSTITUTION OF APPROPRIATE AGENCY FOR
BOARD.—
(1) IN GENERAL.—The Bank Holding Company
Act of 1956 (12 U.S.C. 1841 et seq.) is amended by
striking ‘‘Board’’ each place such term appears
(other than in sections 2(f), 2(h), 4(c)(9), and
4(c)(13)) and inserting ‘‘appropriate Federal bank-
ing agency’’.
(2) APPROPRIATE FEDERAL BANKING AGENCY
DEFINED.—Section 2(f) of the Bank Holding Com-
pany Act of 1956 (1841(f)) is amended to read as
follows:
‘‘(f) APPROPRIATE FEDERAL BANKING AGENCY.—
The term ‘appropriate Federal banking agency’ has the
meaning given to such term in section 3(q) of the Federal
Deposit Insurance Act.’’.
(b) REPORTS.—Section 5(c) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1844(c)) is amended
by striking the last sentence.
SEC. 504. AMENDMENT TO THE BANK HOLDING COMPANY
AMENDMENTS ACT OF 1970.
Section 106(a) of the Bank Holding Company Act
Amendments of 1970 (12 U.S.C. 1971) is amended by
adding the following sentence at the end thereof: ‘‘The
term ‘appropriate Federal banking agency’ has the same
meaning as in section 3(q) of the Federal Deposit Insur-
ance Act.’’.
TITLE VI—REGULATORY
UNIFORMITY
SEC. 601. AMENDMENTS RELATING TO THE FINANCIAL IN-
STITUTIONS EXAMINATION COUNCIL.
(a) UNIFORM EXAMINATION AND SUPERVISION.—
Subsection (a) of section 1006 of the Federal Financial
Institutions Examination Council Act of 1978 is amended
to read as follows:
‘‘(a) UNIFORM EXAMINATION AND SUPERVISION.—
The Council shall, insofar as is practicable, establish uni-
form principles and standards for the examination and su-
pervision of financial institutions and other providers of
financial services within the jurisdiction of the member
agencies, which shall be applied by the member agencies.’’.
(b) RECOMMENDATIONS FOR UNIFORMITY IN OTHER
SUPERVISORY MATTERS.—Subsection (b)(1) of section
1006 of the Federal Financial Institutions Examination
Council Act of 1978 is amended to read as follows:
‘‘(b) UNIFORMITY
IN OTHER SUPERVISORY MAT-
TERS.—
‘‘(1) IN
GENERAL.—The Council shall make
recommendations for uniformity in other supervisory
matters, such as identifying financial institutions
and other providers of financial services in need of
special supervisory attention, the adequacy of super-
visory tools for determining the impact of affiliate
operations on insured depository institutions and the
ability of the member agencies to discover possible
fraud or questionable practices.’’.
(c) UNIFORM REGULATIONS.—Section 1006 of the
Federal Financial Institutions Examination Council Act of
1978 is amended—
(1) by redesignating subsections (e) and (f) as
subsections (g) and (h), respectively; and
(2) by inserting after subsection (d) the follow-
ing new subsections:
‘‘(e) UNIFORM REGULATIONS.—
‘‘(1) SUBMISSION OF EACH PROPOSED REGULA-
TION.—Each Federal financial institutions regu-
latory agency shall submit each proposed regulation
relating to the supervision and regulation of finan-
cial institutions to the Council for comments and
recommendations.
‘‘(2) REVIEW
AND
RECOMMENDATIONS.—The
Council shall review any proposed regulation submit-
ted under subsection (a) and shall provide such com-
ments and recommendations to the appropriate Fed-
eral regulatory agency as the Council determines to
be appropriate in order to—
‘‘(A) maintain, insofar as is practicable,
uniformity in the requirements of the regula-
tions of the appropriate Federal regulatory
agencies;
‘‘(B) ensure that such regulations address
such unsafe or unsound practices involving de-
pository institution holding companies and their
affiliates as the Council may identify based
upon the Council’s or any appropriate Federal
regulatory agency’s experience in administering
this Act; and
‘‘(C) ensure that such regulations take into
account competitive conditions in domestic and
international financial markets.
‘‘(f) AUTHORITY TO ISSUE REGULATIONS.—
‘‘(1) IN GENERAL.—Notwithstanding any other
provision of law, the Council may, by unanimous
vote, issue in the name of the Council any uniform
regulation, interpretation, guideline, order, or other
administrative action which could be taken sepa-
rately by any of the Federal agencies represented on
the Council under the Federal Reserve Act, the Fed-
eral Deposit Insurance Act, the Home Owners Loan
Act, title LXII of the Revised Statutes of the United
States, or the Bank Holding Company Act of 1956.
‘‘(2) JUDICIAL REVIEW.—Any action taken by
the Council under paragraph (1) shall be subject to
judicial review as if the action was taken by the
member of the Council in whose stead the Council
acted.’’.
(d) TECHNICAL AND CONFORMING AMENDMENT.—
Section 1003(1) of the Federal Financial Institutions Ex-
amination Council Act of 1978 (12 U.S.C. 3302(1)) is
amended to read as follows:
‘‘(1) FEDERAL FINANCIAL INSTITUTIONS REGU-
LATORY AGENCIES.—The term ‘Federal financial in-
stitutions regulatory agencies’ means the Board of
Governors of the Federal Reserve System, the Fed-
eral Deposit Insurance Corporation, the Federal
Bank Agency, and the National Credit Union
Administration.’’.
TITLE VII—CREDIT UNIONS
SEC. 701. COMPARABLE SUPERVISORY STANDARDS FOR
CREDIT UNIONS.
Insured credit unions (as defined in section 101(7)
of the Federal Credit Union Act) shall be supervised by
the National Credit Union Administration under stand-
ards which are comparable to the standards under which
Federal depository institutions (as defined in section 3(c)
of the Federal Deposit Insurance Act) are supervised by
the appropriate Federal banking agency (as defined in
section 3(q) of the Federal Deposit Insurance Act, as
amended by section 302 of this Act), taking into account
the unique mission and nature of credit unions.
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