§ 1831w. Safety and soundness firewalls applicable to financial subsidiaries of banks

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1999

   Pub. L. 106–102 title I § 121(d)(1) · 113 Stat. 1338

   Enacted · 12 U.S.C. § 1831w

   (Sept. 21, 1950, ch. 967, § 2[46], as added Pub. L. 106–102, title I, § 121(d)(1), Nov. 12, 1999, 113 Stat. 1380.)

   Source evidence

   Code source credit
   (Sept. 21, 1950, ch. 967, § 2[46], as added Pub. L. 106–102, title I, § 121(d)(1), Nov. 12, 1999, 113 Stat. 1380.)

   Enacted provision · exact public law section
   (1) Federal Deposit Insurance Act.— The Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) is amended by inserting after section 45 (as added by section 112(b) of this title) the following new section: “SEC. 46. SAFETY AND SOUNDNESS FIREWALLS APPLICABLE TO FINANCIAL SUBSIDIARIES OF BANKS. “(a) In General.— An insured State bank may control or hold an interest in a subsidiary that engages in activities as principal that would only be permissible for a national bank to conduct through a financial subsidiary if— “(1) the State bank and each insured depository institution affiliate of the State bank are well capitalized (after the capital deduction required by paragraph (2)); “(2) the State bank complies with the capital deduction and financial statement disclosure requirements in section 5136A(c) of the Revised Statutes of the United States; “(3) the State bank complies with the financial and operational safeguards required by section 5136A(d) of the Revised Statutes of the United States; and “(4) the State bank complies with the amendments to sections 23A and 23B of the Federal Reserve Act made by section 121(b) of the Gramm-Leach-Bliley Act. “(b) Preservation of Existing Subsidiaries.— Notwithstanding subsection (a), an insured State bank may retain control of a subsidiary, or retain an interest in a subsidiary, that the State bank lawfully controlled or acquired before the date of the enactment of the Gramm-Leach-Bliley Act, and conduct through such subsidiary any activities lawfully conducted in such subsidiary as of such date. “(c) Definitions.— For purposes of this section, the following definitions shall apply: “(1) Subsidiary.— The term ‘subsidiary’ means any company that is a subsidiary (as defined in section 3(w)(4)) of 1 or more insured banks. “(2) Financial subsidiary.— The term ‘financial subsidiary’ has the meaning given the term in section 5136A(g) of the Revised Statutes of the United States. “(d) Preservation of Authority.— “(1) Federal deposit insurance act.— No provision of this section shall be construed as superseding the authority of the Federal Deposit Insurance Corporation to review subsidiary activities under section 24. “(2) Federal reserve act.— No provision of this section shall be construed as affecting the applicability of the 20th undesignated paragraph of section 9 of the Federal Reserve Act.”.

1 of 1 references resolved to an enrolled provision