company or savings and loan holding company if the person has been charged with the commission of certain crimes involving dishonesty, a breach of trust or money laundering. the amendment would prohibit a person who has been suspended from service at one depository institution, bank holding company or savings and loan holding company from becoming employed by another depository institution or holding company during the length of the suspension order. in addition, the amendment would clarify that a person may be suspended under section 8 ( g ) even if the person was charged with the relevant crime before becoming affiliated with the depository institution or holding company in question. 35. clarify application of section 8 ( i ) of the fdi act ( matrix no. 144 ) amendment clarifies that a federal banking agency may take enforcement action against a person for conduct that occurred during his or her affiliation with a banking organization regardless of whether the enforcement action is initiated through a notice or an order. 36. elimination of outdated provisions of the bhc act ( matrix no. 143 ) amendment eliminates certain outdated provisions of the bhc act that no longer have any effect.

can protect that economy when one of those financial sectors undergoes a shock. australia serves as an interesting test case in the most recent asian financial turmoil. despite its close trade and financial ties to asia, the australian economy exhibited few signs of contagion from contiguous economies, arguably because australia already had well - developed capital markets as well as a sturdy banking system. but going further, it is plausible that the dividends of financial diversity extend to more normal times as well. the existence of alternatives may well insulate all aspects of a financial system from breakdown. diverse capital markets, aside from acting as backup to the credit process in times of stress, compete with a banking system to lower financing costs for all borrowers in more normal circumstances. over the decades, capital markets and banking systems have interacted to create, develop and promote new instruments that improved the efficiency of capital creation and risk bearing in our economies. products for the most part have arisen within the banking system, where they evolved from being specialized instruments for one borrower to having more standardized characteristics. at the point that standardization became sufficient, the product migrated to open capital markets, where trading expanded to a wider class of borrowers, tapping the savings of larger groups. money market mutual funds, futures contracts, junk bonds, and asset - backed securities are all examples of this process at work. once capital markets and traded instruments came into existence, they offered banks new options for hedging their idiosyncratic risks and shifted their business from holding to originating loans. bank trading, in turn, helped these markets to grow. the technology - driven innovations of recent years have facilitated the expansion of this process to a global scale. positions taken by international investors within one country are now being hedged in the capital markets of another : so - called proxy hedging. building financial infrastructure but developments of the past two years have provided abundant evidence that where a domestic financial system is not sufficiently robust, the consequences for a real economy of participating in this new, complex global system can be most unwelcome. it is not surprising that banking systems emerge as the first financial intermediary in market economies as economic integration intensifies. banks can marshal scarce information about the creditworthiness of borrowers to guide decisions about the allocation of capital. the addition of capital market alternatives is possible only if scarce real resources are devoted to building a financial infrastructure – a laborious process whose payoff is often experienced only decades later. the process is difficult to initiate