Extensions of Remarks
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26208 EXTENSIONS OF REMARKS October 1, 1987 EXTENSIONS OF REMARKS THE FINANCIAL SERVICES services for the subsidiaries described in company will not be in compliance with sec HOLDING COMPANY ACT subsections 2(b) and 2(c) of this section; tions 23A and 23B of the Federal Reserve (e) has insulated any bank or banks con Act <12 U.S.C. 371<c)). trolled by any of its bank holding company <O Within 3 days after a decision to deny HON. DAVID DREIER subsidiaries in accordance with the provi certification, the Board shall notify the OF CALIFORNIA sions of sections 23A and 23B of the Federal company in writing of such denial and shall IN THE HOUSE OF REPRESENTATIVES Reserve Act <12 U.S.C. 371<c)); and provide a written basis for such denial. (f) is not controlled, directly or indirectly, Thursday, October 1, 1987 by any other company unless that company ACQUISITIONS BY CERTIFIED FINANCIAL SERVICES HOLDING COMPANIES Mr. DREIER of California. Mr. Speaker, on is primarily engaged in banking or other fi nancial services outside of the United States SEc. 4. (a)(l) A certified financial services September 29, I introduced H.R. 3360, the Fi holding company may establish or acquire nancial Services Holding Company Act. I or engaged solely in managing, controlling or providing services for a certified financial ownership or control of an additional bank would like to submit for the RECORD the text services holding company within the United holding company but only in accordance of H.R. 3360 so that my colleagues will have States. with the provisions of section 3 of the Bank an opportunity to review it. CERTIFICATION Holding Company Act of 1956, as amended <12 U.S.C. 1842), as if it were a bank holding H.R. 3360 SEc. 3. <a> Certification of a company as a Be it enacted by the Senate and House of company. certified financial services holding company (2) A certified financial services holding Representatives of the United States of is obtained by submitting a notice to the America in Congress assembled, company may establish or acquire owner Federal Reserve Board. ship or control of a savings and loan holding SHORT TITLE (b) No later than 30 days following receipt company, but only in accordance with the SECTION 1. This Act may be cited as the by the Federal Reserve Board of the notice provisions of section 408(e) of the National "Financial Services Holding Company Act for certification, a company shall become a Housing Act <12 U.S.C. 1730a(e)), as if it of 1988". certified financial services holding company, were a savings and loan holding company. unless within such 30-day period, the Board: (b) A certified financial services holding CERTIFIED FINANCIAL SERVICES HOLDING (1) issues an order denying certification; (2) COMPANY extends for up to an additional 30 days the company may establish or acquire owner SEc. 2. A certified financial services hold period during which denial may be issued; ship or control of any company engaged ing company is any company that: or (3) notifies the company that it shall be a solely in one or more of the activities de (a) has been certified in accordance with certified financial services holding company scribed in sections (2)(c) (2)-(8) of this Act the provisions of section 3 of this Act; prior to the expiration of the 30-day period. if, within 30 days following the submission (b) has one or more subsidiaries that are (c) The initial 30-day period may be ex of a notice to the Federal Reserve Board, bank holding companies, as those terms are tended for such additional 30-day period the Board does not disapprove the proposal defined in the Bank Holding Company Act only if the Board determines that the com or extend the period during which it may of 1956, as amended <12 U.S.C. 1841 et. seq.>; pany has not furnished all the information disapprove the proposal. (c) has one or more subsidiaries that are required to be submitted or that in the <c> The Board may disapprove a proposal separate from its bank holding company Board's judgment any material information only if the proposed acquisition or new ac subsidiaries and are engaged only in one or submitted is substantially inaccurate. tivity would cause the company to fail to more of the following: <d> The form for the notice for certifica meet the activity limitations for a certified <1) managing, controlling and providing tion shall be prescribed by the Board and financial services holding company, as pro services for an insured institution as defined shall be limited to information necessary to vided in sections 2(c) and 2(d) of this Act. in section 408(a)(l) of the National Housing determine <1> whether the company's activi REPORTING REQUIREMENTS Act (12 U.S.C. 1730a<a><l>>; ties will be limited to those described in sec SEc. 5. The Federal Reserve Board may <2> engaging in the issue, flotation, under tions 2(c) and 2<d> of this Act. (2) whether periodically require reports under oath, in writing, public sale, or distribution at whole the company is in compliance with the con such scope and detail as it may determine, sale or retail or through syndicate participa trol limitations of section 2(f) of this Act, of a certified financial services holding com tion of stocks, bonds, debentures, notes, or and (3) that any bank controlled by any of pany to keep the Board informed as to other securities; its bank holding company subsidiaries will whether such company is in compliance (3) organizing, sponsoring, operating and be in compliance with the provisions of sec with: controlling an investment company, and un tions 23A and 23B of the Federal Reserve (a) the activity limitations of sections 2<c> derwriting, distributing, and selling securi Act. For purposes of these determinations, and 2<d> of this Act; ties of any investment company, as such the Board shall find acceptable a statement (b) the affiliate transaction restrictions of terms as defined in section 3 of the Invest signed by an appropriate senior officer of sections 23A and 23B of the Federal Reserve ment Company Act of 1940 <15 U.S.C. 80a- the company certifying that the company's Act <12 U.S.C. 37l(c)); 3), as amended; activities will be limited to those described (c) the control provisions of section 2(f) of (4) acting as an investment advisor within in sections 2(c) and 2(d) of this Act, that the this Act; and the meaning of the Investment Advisoi'S Act company is not controlled, directly or indi (d) the anti-tying provisions of section 106 of 1940, as amended <15 U.S.C. 80b-2<11>; rectly, by any other company, other than as of the Bank Holding Company Act Amend (5) engaging in the business of insurance provided by section 2(f) of this Act, and that ments of 1970 <12 U.S.C. 1971). under the statutes of any of the fifty states, any bank controlled by any bank holding the District of Columbia, Guam, or Puerto company subsidiary of such company will be PENALTIES Rico; in compliance with the provisions of sec SEc. 6. <a> The Federal Reserve Board may (6) engaging in real estate investment, de tions 23A and 23B of the Federal Reserve exercise the enforcement authorities con velopment, and brokerage; Act <12 U.S.C. 37l(C)). tained in subsections <bHn) of section 8 of (7) engaging in any activity permissable (e) The Board may issue an order denying the Federal Deposit Insurance Act <12 for a bank holding company under section 4 certification only if it finds that: U.S.C. 1818(b)-(n)) if the Board finds that a of the Bank Holding Company Act of 1956, <1) the company's activities will not be certified financial services holding company as amended <12 U.S.C. 1843); or limited to those specified in sections 2<c> is not in compliance with the activity limita (8) engaging in any activity permissable and 2(d) of this Act; tions of sections 2<c> and 2(d) of this Act for a multiple savings and loan holding com (2) the company is controlled, directly or and the control provisions of section 2(0 of pany under section (c) of the Savings and indirectly, by any other company, other this Act. In exercising the authorities con Loan Holding Company Amendments of than as provided by section 2<0 of this Act; tained in subsections <bHn) of section 8 of 1967 <12 U.S.C. 1730(a)(c)); or the Federal Deposit Insurance Act <12 <d> does not engage in any activities other (3) the bank or banks controlled by any U.S.C. 1818(b)-(n)), the Board shall apply than managing, controlling or providing bank holding company subsidiary of such the standards and procedures set forth in e This "bullet" symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor. October 1, 1987 EXTENSIONS OF REMARKS 26209 those subsections as if the certified financial AMENDMENTS TO THE BANK HOLD!NG COMPANY in making or procuring loans on real estate services holding company were an insured ACT and also including acting as broker or agent bank. SEc. 8. <a> Section 2(a)(5) of the Bank for the sale or purchase of real estate under <d)(l) If the Board finds that a company Holding Company Act of 1956 02 U.S.C.