[StBernard] Frank Announces House Offer on Prudential Regulation

[Westley Annis]

Frank Announces House Offer on Prudential Regulation

 

Washington, DC – Chairman Frank, on behalf of the House conferees, released
the House offer on the titles listed below.  The issues will be subject to
debate when the House-Senate Conference Committee convenes in room SD-106,
Dirksen Senate Office Building, at 1:00 p.m. tomorrow.

 

Title VI of base text: Improvements to Regulation of Bank and Savings
Association Holding Companies and Depository Institutions
<http://financialservices.house.gov/Key_Issues/Financial_Regulatory_Reform/T
ITLEVI_OFFER_REG-IMPV.pdf> 

 

The House proposes the following amendments to the Base text: 

 

*        Amend Senate Provision regarding moratorium on applications for
credit card banks, industrial loan companies, and certain other depository
institutions to allow for limited investments in the parent company. (Senate
bill, § 603, page 514, after line 4). 

 

*        Amend Senate Provision regarding functionally regulated
subsidiaries to delete insurance companies from the definition because there
is no federal regulation of insurance companies, and other technical and
conforming changes to the section on holding company reports and the
definition of functionally regulated subsidiary. (Senate bill § 604, page
521, line 4 – page 529, line 20). 

 

*        Amend Senate Provision on banking agency authority over holding
company subsidiaries to require Federal Reserve to examine nonbank
subsidiaries that engage in bank-permissible activities. (Senate bill § 605,
page 530).

 

*        Amend Senate Provision on requirements for bank holding companies
to remain well capitalized and well managed to engage in expanded activities
so that it applies to savings & loan holding companies as well. (Senate
bill§ 606, page 538, after line 24).

 

*        Strike Senate Provision applying national bank lending to
state-chartered banks. (Senate bill § 611, Page 551, lines 11-23).

 

*        Amend Senate Provision restricting charter conversions of banks and
savings associations subject to an enforcement order, to allow for charter
conversions not opposed by both the old and new federal banking agency.
(Senate bill § 612, pages 552-553).

 

*        Amend Senate Provision on regulations regarding capital levels at
holding companies to incorporate House provision on countercyclical capital.
(Senate bill § 616, page 557, lines 1-14; House bill § 1255).

 

*        Amend Senate Provision on securities holding companies to better
reflect House position by limiting eligibility to register as a securities
holding company. (Senate bill, §618, page 559, line 16 – 570, line 2; House
bill, § 1961, pages 533 – 541)).

 

*        Amend Senate Provision on concentration limits on large financial
firms to amend the definition of financial company to more closely conform
to other portions of the bill. (Senate bill § 620, page 583, lines 11-23).

 

*        Amend House Provision on treatment of dividends by certain mutual
holding companies to clarify universe of applicable companies who have
relied on OTS rules in this regard. (Base text § 623, pages 595-598; House
bill § 1219).

 

*        Add Portions of House Provision requiring use of intermediate
holding companies by commercial firms that control grandfathered unitary
thrift holding companies. (House bill § 1103).

 

*        Add House provision on repeal of prohibition of banks paying
interest on demand deposits. (House bill § 11001) 

 

*        Add House Provision permitting credit card banks to issue credit
cards to small businesses (House bill §1301(a)(4)(B)) 

 

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