[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 881 Introduced in Senate (IS)]
<DOC>
115th CONGRESS
1st Session
S. 881
To reduce risks to the financial system by limiting banks' ability to
engage in certain risky activities and limiting conflicts of interest,
to reinstate certain Glass-Steagall Act protections that were repealed
by the Gramm-Leach-Bliley Act, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 6 (legislative day, April 4), 2017
Ms. Warren (for herself, Mr. McCain, Ms. Cantwell, and Mr. King)
introduced the following bill; which was read twice and referred to the
Committee on Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To reduce risks to the financial system by limiting banks' ability to
engage in certain risky activities and limiting conflicts of interest,
to reinstate certain Glass-Steagall Act protections that were repealed
by the Gramm-Leach-Bliley Act, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``21st Century Glass-Steagall Act of
2017''.
SEC. 2. FINDINGS AND PURPOSE.
(a) Findings.--Congress finds that--
(1) in response to a financial crisis and the ensuing Great
Depression, Congress enacted the Banking Act of 1933, known as
the ``Glass-Steagall Act'', to prohibit commercial banks from
offering investment banking and insurance services;
(2) a series of deregulatory decisions by the Board of
Governors of the Federal Reserve System and the Office of the
Comptroller of the Currency, in addition to decisions by
Federal courts, permitted commercial banks to engage in an
increasing number of risky financial activities that had
previously been restricted under the Glass-Steagall Act, and
also vastly expanded the meaning of the ``business of banking''
and ``closely related activities'' in banking law;
(3) in 1999, Congress enacted the ``Gramm-Leach-Bliley
Act'', which repealed the Glass-Steagall Act separation between
commercial and investment banking and allowed for complex
cross-subsidies and interconnections between commercial and
investment banks;
(4) former Kansas City Federal Reserve President Thomas
Hoenig observed that ``with the elimination of Glass-Steagall,
the largest institutions with the greatest ability to leverage
their balance sheets increased their risk profile by getting
into trading, market making, and hedge fund activities, adding
ever greater complexity to their balance sheets.'';
(5) the Financial Crisis Inquiry Report issued by the
Financial Crisis Inquiry Commission concluded that, in the
years between the passage of the Gramm-Leach Bliley Act and the
global financial crisis, ``regulation and supervision of
traditional banking had been weakened significantly, allowing
commercial banks and thrifts to operate with fewer constraints
and to engage in a wider range of financial activities,
including activities in the shadow banking system.''. The
Commission also concluded that ``[t]his deregulation made the
financial system especially vulnerable to the financial crisis
and exacerbated its effects.'';
(6) a report by the Financial Stability Oversight Council
pursuant to section 123 of the Dodd-Frank Wall Street Reform
and Consumer Protection Act (12 U.S.C. 5333) states that
increased complexity and diversity of financial activities at
financial institutions may ``shift institutions towards more
risk-taking, increase the level of interconnectedness among
financial firms, and therefore may increase systemic default
risk. These potential costs may be exacerbated in cases where
the market perceives diverse and complex financial institutions
as `too big to fail,' which may lead to excessive risk taking
and concerns about moral hazard.'';
(7) the Senate Permanent Subcommittee on Investigations
report, ``Wall Street and the Financial Crisis: Anatomy of a
Financial Collapse'', states that repeal of the Glass-Steagall
Act ``made it more difficult for regulators to distinguish
between activities intended to benefit customers versus the
financial institution itself. The expanded set of financial
services investment banks were allowed to offer also
contributed to the multiple and significant conflicts of
interest that arose between some investment banks and their
clients during the financial crisis.'';
(8) the Senate Permanent Subcommittee on Investigations
report, ``JPMorgan Chase Whale Trades: A Case History of
Derivatives Risks and Abuses'', describes how traders at
JPMorgan Chase made risky bets using excess deposits that were
partly insured by the Federal Government;
(9) in Europe, the Vickers Independent Commission on
Banking (for the United Kingdom) and the Liikanen Report (for
the Euro area) have both found that there is no inherent reason
to bundle ``retail banking'' with ``investment banking'' or
other forms of relatively high risk securities trading, and
European countries are set on a path of separating various
activities that are currently bundled together in the business
of banking;
(10) private sector actors prefer having access to
underpriced public sector insurance, whether explicit (for
insured deposits) or implicit (for ``too big to fail''
financial institutions), to subsidize dangerous levels of risk-
taking, which, from a broader social perspective, is not an
advantageous arrangement; and
(11) the financial crisis, and the regulatory response to
the crisis, has led to more mergers between financial
institutions, creating greater financial sector consolidation
and increasing the dominance of a few large, complex financial
institutions that are generally considered to be ``too big to
fail'', and therefore are perceived by the markets as having an
implicit guarantee from the Federal Government to bail them out
in the event of their failure.
(b) Purposes.--The purposes of this Act are--
(1) to reduce risks to the financial system by limiting the
ability of banks to engage in activities other than socially
valuable core banking activities;
(2) to protect taxpayers and reduce moral hazard by
removing explicit and implicit government guarantees for high-
risk activities outside of the core business of banking; and
(3) to eliminate any conflict of interest that arises from
banks engaging in activities from which their profits are
earned at the expense of their customers or clients.
SEC. 3. DEFINITIONS.
In this Act--
(1) the term ``bank holding company'' has the meaning given
the term in section 2 of the Bank Holding Company Act of 1956
(12 U.S.C. 1841); and
(2) the terms ``insurance company'', ``insured depository
institution'', ``securities entity'', and ``swaps entity'' have
the meanings given those terms in section 18(s)(6)(D) of the
Federal Deposit Insurance Act, as added by section 4(a) of this
Act.
SEC. 4. SAFE AND SOUND BANKING.
(a) Insured Depository Institutions.--Section 18(s) of the Federal
Deposit Insurance Act (12 U.S.C. 1828(s)) is amended by adding at the
end the following:
``(6) Limitations on banking affiliations.--
``(A) Prohibition on affiliations with
nondepository entities.--An insured depository
institution may not--
``(i) be or become an affiliate of any
insurance company, securities entity, or swaps
entity;
``(ii) be in common ownership or control
with any insurance company, securities entity,
or swaps entity; or
``(iii) engage in any activity that would
cause the insured depository institution to
qualify as an insurance company, securities
entity, or swaps entity.
``(B) Individuals eligible to serve on boards of
depository institutions.--
``(i) In general.--An individual who is an
officer, director, partner, or employee of any
securities entity, insurance company, or swaps
entity may not serve at the same time as an
officer, director, employee, or other
institution-affiliated party of any insured
depository institution.
``(ii) Exception.--Clause (i) shall not
apply with respect to service by any individual
which is otherwise prohibited under clause (i),
if the appropriate Federal banking agency
determines, by regulation with respect to a
limited number of cases, that service by such
an individual as an officer, director,
employee, or other institution-affiliated party
of an insured depository institution would not
unduly influence--
``(I) the investment policies of
the depository institution; or
``(II) the advice that the
institution provides to customers.
``(iii) Termination of service.--Subject to
a determination under clause (i), any
individual described in clause (i) who, as of
the date of enactment of the 21st Century
Glass-Steagall Act of 2017, is serving as an
officer, director, employee, or other
institution-affiliated party of any insured
depository institution shall terminate such
service as soon as is practicable after such
date of enactment, and in no event, later than
the end of the 60-day period beginning on that
date of enactment.
``(C) Termination of existing affiliations and
activities.--
``(i) Orderly termination of existing
affiliations and activities.--Any affiliation,
common ownership or control, or activity of an
insured depository institution with any
securities entity, insurance company, swaps
entity, or any other person, as of the date of
enactment of the 21st Century Glass-Steagall
Act of 2017, which is prohibited under
subparagraph (A) shall be terminated as soon as
is practicable, and in no event later than the
end of the 5-year period beginning on that date
of enactment.
``(ii) Early termination.--The appropriate
Federal banking agency, at any time after
opportunity for hearing, may order termination
of an affiliation, common ownership or control,
or activity prohibited by clause (i) before the
end of the 5-year period described in clause
(i), if the agency determines that such
action--
``(I) is necessary to prevent undue
concentration of resources, decreased
or unfair competition, conflicts of
interest, or unsound banking practices;
and
``(II) is in the public interest.
``(iii) Extension.--Subject to a
determination under clause (ii), an appropriate
Federal banking agency may extend the 5-year
period described in clause (i) as to any
particular insured depository institution for
not more than an additional 6 months at a time,
if--
``(I) the agency certifies that
such extension would promote the public
interest and would not pose a
significant threat to the stability of
the banking system or financial markets
in the United States; and
``(II) such extension, in the
aggregate, does not exceed 1 year for
any single insured depository
institution.
``(iv) Requirements for entities receiving
an extension.--Upon receipt of an extension
under clause (iii), the insured depository
institution shall notify shareholders of the
insured depository institution and the general
public that it has failed to comply with the
requirements of clause (i).
``(D) Definitions.--For purposes of this paragraph,
the following definitions shall apply:
``(i) Insurance company.--The term
`insurance company' has the meaning given the
term in section 2(q) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1841(q)).
``(ii) Insured depository institution.--The
term `insured depository institution'--
``(I) has the meaning given the
term in section 3(c)(2); and
``(II) does not include a savings
association controlled by a savings and
loan holding company, as described in
section 10(c)(9)(C) of the Home Owners'
Loan Act (12 U.S.C. 1467a(c)(9)(C)).
``(iii) Securities entity.--The term
`securities entity'--
``(I) includes any entity engaged
in--
``(aa) the issue,
flotation, underwriting, public
sale, or distribution of
stocks, bonds, debentures,
notes, or other securities;
``(bb) market making;
``(cc) activities of a
broker or dealer, as those
terms are defined in section
3(a) of the Securities Exchange
Act of 1934 (15 U.S.C. 78c(a));
``(dd) activities of a
futures commission merchant;
``(ee) activities of an
investment adviser or
investment company, as those
terms are defined in section
202(a) of the Investment
Advisers Act of 1940 (15 U.S.C.
80b-2(a)) and section 3(a)(1)
of the Investment Company Act
of 1940 (15 U.S.C. 80a-
3(a)(1)), respectively; or
``(ff) hedge fund or
private equity investments in
the securities of either
privately or publicly held
companies; and
``(II) does not include a bank
that, pursuant to its authorized trust
and fiduciary activities--
``(aa) purchases and sells
investments for the account of
its customers; or
``(bb) provides financial
or investment advice to its
customers.
``(iv) Swaps entity.--The term `swaps
entity' means any swap dealer, security-based
swap dealer, major swap participant, or major
security-based swap participant, that is
registered under--
``(I) the Commodity Exchange Act (7
U.S.C. 1 et seq.); or
``(II) the Securities Exchange Act
of 1934 (15 U.S.C. 78a et seq.).''.
(b) Limitation on Banking Activities.--Section 21 of the Banking
Act of 1933 (12 U.S.C. 378) is amended by adding at the end the
following:
``(c) Business of Receiving Deposits.--For purposes of this
section, the term `business of receiving deposits' includes the
establishment and maintenance of any transaction account (as defined in
section 19(b)(1)(C) of the Federal Reserve Act (12 U.S.C.
461(b)(1)(C))).''.
(c) Permitted Activities of National Banks.--The paragraph
designated as ``Seventh'' of section 24 of the Revised Statutes (12
U.S.C. 24) is amended to read as follows:
``Seventh. (A) To exercise by its board of directors or
duly authorized officers or agents, subject to law, all such
powers as are necessary to carry on the business of banking.
``(B) As used in this paragraph, the term `business of
banking' shall be limited to the following core banking
services:
``(i) Receiving deposits.--A national banking
association may engage in the business of receiving
deposits.
``(ii) Extensions of credit.--A national banking
association may--
``(I) extend credit to individuals,
businesses, not for profit organizations, and
other entities;
``(II) discount and negotiate promissory
notes, drafts, bills of exchange, and other
evidences of debt; and
``(III) loan money on personal security.
``(iii) Payment systems.--A national banking
association may participate in payment systems, defined
as instruments, banking procedures, and interbank funds
transfer systems that ensure the circulation of money.
``(iv) Coin and bullion.--A national banking
association may buy, sell, and exchange coin and
bullion.
``(v) Investments in securities.--
``(I) In general.--A national banking
association may invest in investment
securities, defined as marketable obligations
evidencing indebtedness of any person,
copartnership, association, or corporation in
the form of bonds, notes, or debentures
(commonly known as `investment securities'),
obligations of the Federal Government, or any
State or subdivision thereof, and includes the
definition of `investment securities', as may
be jointly prescribed by regulation by--
``(aa) the Comptroller of the
Currency;
``(bb) the Federal Deposit
Insurance Corporation; and
``(cc) the Board of Governors of
the Federal Reserve System.
``(II) Limitations.--The business of
dealing in securities and stock by the
association shall be limited to--
``(aa) purchasing and selling such
securities and stock without recourse,
solely upon the order, and for the
account of, customers, and in no case
for its own account, and the
association shall not underwrite any
issue of securities or stock; and
``(bb) purchasing for its own
account investment securities under
such limitations and restrictions as
the Comptroller of the Currency, the
Federal Deposit Insurance Corporation,
and the Board of Governors of the
Federal Reserve System may jointly
prescribe, by regulation.
``(III) Prohibition on amount of
investment.--In no event shall the total amount
of the investment securities of any single
obligor or maker, held by the association for
its own account, exceed 10 percent of its
capital stock actually paid in and unimpaired
and 10 percent of its unimpaired surplus fund,
except that such limitation shall not require
any association to dispose of any securities
lawfully held by it on August 23, 1935.
``(C) Prohibition against transactions involving structured
or synthetic products.--A national banking association may
not--
``(i) invest in a structured or synthetic product,
a financial instrument in which a return is calculated
based on the value of, or by reference to the
performance of, a security, commodity, swap, other
asset, or an entity, or any index or basket composed of
securities, commodities, swaps, other assets, or
entities, other than customarily determined interest
rates; or
``(ii) otherwise engage in the business of
receiving deposits or extending credit for transactions
involving structured or synthetic products.''.
(d) Permitted Activities of Federal Savings Associations.--Section
5(c)(1) of the Home Owners' Loan Act (12 U.S.C. 1464(c)(1)) is
amended--
(1) by striking subparagraph (Q); and
(2) by redesignating subparagraphs (R) through (U) as
subparagraphs (Q) through (T), respectively.
(e) Closely Related Activities.--Section 4(c) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1843(c)) is amended--
(1) in paragraph (8), by striking ``had been determined''
and all that follows through the end and inserting the
following: ``are so closely related to banking so as to be a
proper incident thereto, as provided under this paragraph or
any rule or regulation issued by the Board under this
paragraph, provided that for purposes of this paragraph,
closely related shall not be considered to include--
``(A) serving as an investment adviser (as defined
in section 2(a) of the Investment Company Act of 1940
(15 U.S.C. 80a-2(a))) to an investment company
registered under that Act, including sponsoring,
organizing, and managing a closed-end investment
company;
``(B) agency transactional services for customer
investments, except that this subparagraph may not be
construed as prohibiting purchases and sales of
investments for the account of customers conducted by a
bank (or subsidiary thereof) pursuant to the bank's
trust and fiduciary powers;
``(C) investment transactions as principal, except
for activities specifically allowed by paragraph (14);
and
``(D) management consulting and counseling
activities;'';
(2) in paragraph (13), by striking ``or'' at the end;
(3) by redesignating paragraph (14) as paragraph (15); and
(4) by inserting after paragraph (13) the following:
``(14) purchasing, as an end user, any swap, to the extent
that--
``(A) the purchase of any such swap occurs
contemporaneously with the underlying hedged item or
hedged transaction;
``(B) there is formal documentation identifying the
hedging relationship with particularity at the
inception of the hedge; and
``(C) the swap is being used to hedge against
exposure to--
``(i) changes in the value of an individual
recognized asset or liability or an identified
portion thereof that is attributable to a
particular risk;
``(ii) changes in interest rates; or
``(iii) changes in the value of currency;
or''.
(f) Prohibited Activities.--Section 4(a) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1843(a)) is amended--
(1) in paragraph (1), by striking ``, or'' and inserting a
semicolon;
(2) in paragraph (2), by striking the ``requirements of
this Act.'' and inserting ``requirements of this Act; or''; and
(3) by inserting before the undesignated matter following
paragraph (2) the following:
``(3) with the exception of the activities permitted under
subsection (c), engage in the business of a `securities entity'
or a `swaps entity', as those terms are defined in section
18(s)(6)(D) of the Federal Deposit Insurance Act (12 U.S.C.
1828(s)(6)(D)), including dealing or making markets in
securities, repurchase agreements, exchange traded and over-
the-counter swaps, as defined by the Commodity Futures Trading
Commission and the Securities and Exchange Commission, or
structured or synthetic products, as defined in the paragraph
designated as `Seventh' of section 24 of the Revised Statutes
(12 U.S.C. 24), or any other over-the-counter securities,
swaps, contracts, or any other agreement that derives its value
from, or takes on the form of, such securities, derivatives, or
contracts;
``(4) engage in proprietary trading, as provided by section
13, or any rule or regulation under that section;
``(5) own, sponsor, or invest in a hedge fund, or private
equity fund, or any other fund, as provided by section 13, or
any rule or regulation under that section, or any other fund
that exhibits the characteristics of a fund that takes on
proprietary trading activities or positions;
``(6) hold ineligible securities or derivatives;
``(7) engage in market-making; or
``(8) engage in prime brokerage activities.''.
(g) Anti-Evasion.--
(1) In general.--Any attempt to structure any contract,
investment, instrument, or product in such a manner that the
purpose or effect of such contract, investment, instrument, or
product is to evade or attempt to evade the prohibitions
described in section 18(s)(6) of the Federal Deposit Insurance
Act (12 U.S.C. 1828(s)(6)), section 21(c) of the Banking Act of
1933 (12 U.S.C. 378(c)), the paragraph designated as
``Seventh'' of section 24 of the Revised Statutes (12 U.S.C.
24), section 5(c)(1) of the Home Owners' Loan Act (12 U.S.C.
1464(c)(1)), or section 4(a) of the Bank Holding Company Act of
1956 (12 U.S.C. 1843(a)), as added or amended by this section,
shall be considered a violation of the Federal Deposit
Insurance Act (12 U.S.C. 1811 et seq.), the Banking Act of 1933
(Public Law 73-66; 48 Stat. 162), section 24 of the Revised
Statutes (12 U.S.C. 24), the Home Owners' Loan Act (12 U.S.C.
1461 et seq.), and the Bank Holding Company Act of 1956 (12
U.S.C. 1841 et seq.), respectively.
(2) Termination.--
(A) In general.--Notwithstanding any other
provision of law, if a Federal agency has reasonable
cause to believe that an insured depository
institution, securities entity, swaps entity, insurance
company, bank holding company, or other entity over
which that Federal agency has regulatory authority has
made an investment or engaged in an activity in a
manner that functions as an evasion of the prohibitions
described in paragraph (1) (including through an abuse
of any permitted activity) or otherwise violates such
prohibitions, the Federal agency shall--
(i) order, after due notice and opportunity
for hearing, the entity to terminate the
activity and, as relevant, dispose of the
investment;
(ii) order, after the procedures described
in clause (i), the entity to pay a penalty
equal to 10 percent of the entity's net
profits, averaged over the previous 3 years,
into the Treasury of the United States; and
(iii) initiate proceedings described in
section 8(e) of the Federal Deposit Insurance
Act (12 U.S.C. 1818(e)) for individuals
involved in evading the prohibitions described
in paragraph (1).
(B) Construction.--Nothing in this paragraph shall
be construed to limit the inherent authority of any
Federal agency or State regulatory authority to further
restrict any investments or activities under otherwise
applicable provisions of law.
(3) Reporting requirement.--
(A) In general.--Not later than 1 year after the
date of enactment of this Act, and every year
thereafter, each Federal agency having regulatory
authority over any entity described in paragraph (2)(A)
shall submit to the Committee on Banking, Housing, and
Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives and
make available to the public a report, which shall
identify--
(i) the number and character of any
activities that took place in the preceding
year that function as an evasion of the
prohibitions described in paragraph (1);
(ii) the names of the particular entities
engaged in those activities; and
(iii) the actions of the Federal agency
taken under paragraph (2).
(h) Attestation.--Section 4 of the Bank Holding Company Act of 1956
(12 U.S.C. 1843), as amended by section 4(a)(1) of this Act, is amended
by adding at the end the following:
``(k) Attestation.--Executives of any bank holding company or its
affiliate shall attest in writing, under penalty of perjury, that the
bank holding company or affiliate is not engaged in any activity that
is prohibited under subsection (a), except to the extent that such
activity is permitted under subsection (c).''.
SEC. 5. REPEAL OF GRAMM-LEACH-BLILEY ACT PROVISIONS.
(a) Termination of Financial Holding Company Designation.--
(1) In general.--Section 4 of the Bank Holding Company Act
of 1956 (12 U.S.C. 1843) is amended by striking subsections
(k), (l), (m), (n), and (o).
(2) Transition.--
(A) Orderly termination of existing affiliation.--
In the case of a bank holding company which, pursuant
to the amendments made by paragraph (1), is no longer
authorized to control or be affiliated with any entity
that was permissible for a financial holding company on
the day before the date of enactment of this Act, any
affiliation, ownership or control, or activity by the
bank holding company that is not permitted for a bank
holding company shall be terminated as soon as is
practicable, and in no event later than the end of the
5-year period beginning on the date of enactment of
this Act.
(B) Early termination.--The Board of Governors of
the Federal Reserve System (in this section referred to
as the ``Board''), after opportunity for hearing, at
any time, may terminate an affiliation prohibited by
subparagraph (A) before the end of the 5-year period
described in subparagraph (A) if the Board determines
that such action--
(i) is necessary to prevent undue
concentration of resources, decreased or unfair
competition, conflicts of interest, or unsound
banking practices; and
(ii) is in the public interest.
(C) Extension.--Subject to a determination under
subparagraph (B), the Board may extend the 5-year
period described in subparagraph (A), as to any
particular bank holding company, for not more than an
additional 6 months at a time, if--
(i) the Board certifies that such extension
would promote the public interest and would not
pose a significant risk to the stability of the
banking system or financial markets of the
United States; and
(ii) such extension, in the aggregate, does
not exceed 1 year for any single bank holding
company.
(D) Requirements for entities receiving an
extension.--Upon receipt of an extension under
subparagraph (C), a bank holding company shall notify
the shareholders of the bank holding company and the
general public that the bank holding company has failed
to comply with the requirements of subparagraph (A).
(b) Financial Subsidiaries of National Banks Disallowed.--
(1) In general.--Section 5136A of the Revised Statutes (12
U.S.C. 24a) is repealed.
(2) Transition.--
(A) Orderly termination of existing affiliation.--
In the case of a national bank which, pursuant to the
amendment made by paragraph (1), is no longer
authorized to control or be affiliated with a financial
subsidiary as of the date of enactment of this Act,
such affiliation, ownership or control, or activity
shall be terminated as soon as is practicable, and in
no event later than the end of the 5-year period
beginning on the date of enactment of this Act.
(B) Early termination.--The Comptroller of the
Currency (in this section referred to as the
``Comptroller''), after opportunity for hearing, at any
time, may terminate an affiliation prohibited by
subparagraph (A) before the end of the 5-year period
described in subparagraph (A) if the Comptroller
determines, having due regard for the purposes of this
Act, that such action--
(i) is necessary to prevent undue
concentration of resources, decreased or unfair
competition, conflicts of interest, or unsound
banking practices; and
(ii) is in the public interest.
(C) Extension.--Subject to a determination under
subparagraph (B), the Comptroller may extend the 5-year
period described in subparagraph (A) as to any
particular national bank for not more than an
additional 6 months at a time, if--
(i) the Comptroller certifies that such
extension would promote the public interest and
would not pose a significant risk to the
stability of the banking system or financial
markets of the United States; and
(ii) such extension, in the aggregate, does
not exceed 1 year for any single national bank.
(D) Requirements for entities receiving an
extension.--Upon receipt of an extension under
subparagraph (C), a national bank shall notify the
shareholders of the national bank and the general
public that the national bank has failed to comply with
the requirements described in subparagraph (A).
(3) Clerical amendment.--The table of sections for chapter
one of title LXII of the Revised Statutes is amended by
striking the item relating to section 5136A.
(c) Repeal of Provision Relating to Foreign Banks Filing as
Financial Holding Companies.--Section 8(c) of the International Banking
Act of 1978 (12 U.S.C. 3106(c)) is amended by striking paragraph (3).
SEC. 6. REPEAL OF BANKRUPTCY PROVISIONS.
Title 11, United States Code, is amended by repealing sections 555,
559, 560, and 562.
SEC. 7. TECHNICAL AND CONFORMING AMENDMENTS.
(a) Bank Holding Company Act of 1956.--The Bank Holding Company Act
of 1956 (12 U.S.C. 1841 et seq.) is amended--
(1) in section 2 (12 U.S.C. 1841)--
(A) by striking subsection (p); and
(B) by redesignating subsection (q) as subsection
(p); and
(2) in section 5 (12 U.S.C. 1844)--
(A) in subsection (a), by striking the last
sentence;
(B) in subsection (c), by striking paragraphs (3),
(4), and (5); and
(C) by striking subsection (g).
(b) Bank Holding Company Act Amendments of 1970.--Section 106(a) of
the Bank Holding Company Act Amendments of 1970 (12 U.S.C. 1971(a)) is
amended by striking the last sentence.
(c) Clayton Act.--Section 7A(c) of the Clayton Act (15 U.S.C.
18a(c)) is amended--
(1) in paragraph (7), by striking ``, except that'' and all
that follows and inserting a semicolon; and
(2) in paragraph (8), by striking ``, except that'' and all
that follows and inserting a semicolon.
(d) Commodity Exchange Act.--The Commodity Exchange Act (7 U.S.C. 1
et seq.) is amended--
(1) in section 1a(21)(G) (7 U.S.C. 1a(21)(G)), by striking
``(as defined in section 2 of the Bank Holding Company Act of
1956)'';
(2) in section 2(c)(2)(B)(i)(II)(dd) (7 U.S.C.
2(c)(2)(B)(i)(II)(dd)), by striking ``(as defined in section 2
of the Bank Holding Company Act of 1956)''; and
(3) in section 2(h)(7)(C)(i)(VIII) (7 U.S.C.
2(h)(7)(C)(i)(VIII)), by striking ``, as defined in section
4(k) of the Bank Holding Company Act of 1956''.
(e) Community Reinvestment Act of 1977.--Section 804 of the
Community Reinvestment Act of 1977 (12 U.S.C. 2903) is amended--
(1) by striking subsection (c); and
(2) by redesignating subsection (d) as subsection (c).
(f) Dodd-Frank Wall Street Reform and Consumer Protection Act.--
Section 201(a)(11)(B) of the Dodd-Frank Wall Street Reform and Consumer
Protection Act (12 U.S.C. 5381(a)(11)(B)) is amended by striking ``for
purposes of section 4(k) of the Bank Holding Company Act of 1956 (12
U.S.C. 1843(k))'' each place that term appears.
(g) Federal Deposit Insurance Act.--The Federal Deposit Insurance
Act (12 U.S.C. 1811 et seq.) is amended--
(1) in section 8(b)(3) (12 U.S.C. 1818(b)(3)), by striking
``section 50'' and inserting ``section 48'';
(2) in section 18(u)(1)(B) (12 U.S.C. 1828(u)(1)(B)), by
striking ``or section 45 of this Act'';
(3) by striking sections 45 and 46 (12 U.S.C. 1831v and
1831w); and
(4) by redesignating sections 47 through 50 as sections 45
through 48, respectively.
(h) Federal Reserve Act.--The Federal Reserve Act (12 U.S.C. 221 et
seq.) is amended--
(1) in the 20th undesignated paragraph of section 9 (12
U.S.C. 335), by striking the last sentence; and
(2) in section 23A (12 U.S.C. 371c)--
(A) in subsection (b)(11), by striking
``subparagraph (H) or (I) of section 4(k)(4) of the
Bank Holding Company Act of 1956 or'';
(B) by striking subsection (e); and
(C) by redesignating subsection (f) as subsection
(e).
(i) Financial Stability Act of 2010.--The Financial Stability Act
of 2010 (12 U.S.C. 5301 et seq.) is amended--
(1) in section 113(c)(5) (12 U.S.C. 5323(c)(5)), by
striking ``(as defined in section 4(k) of the Bank Holding
Company Act of 1956)'';
(2) in section 163 (12 U.S.C. 5363)--
(A) by striking subsection (b); and
(B) in subsection (a), by striking ``(a)'' and all
that follows through ``For purposes'' and inserting
``For purposes'';
(3) in section 167(b) (12 U.S.C. 5367(b)), by striking
``under section 4(k) of the Bank Holding Company Act of 1956''
each place that term appears; and
(4) in section 171(b) (12 U.S.C. 5371(b))--
(A) by striking paragraph (3); and
(B) by redesignating paragraphs (4) through (7) as
paragraphs (3) through (6), respectively.
(j) Gramm-Leach-Bliley Act.--The Gramm-Leach-Bliley Act (Public Law
106-102; 113 Stat. 1338) is amended--
(1) by striking section 115 (12 U.S.C. 1820a);
(2) in section 307(f) (15 U.S.C. 6715(f)), by amending
paragraph (2) to read as follows:
``(2) Board.--The term `Board' has the meaning given the
term in section 2 of the Bank Holding Company Act of 1956 (12
U.S.C. 1841).'';
(3) in section 505(c) (15 U.S.C. 6805(c))--
(A) by striking ``section 47(g)(2)(B)(iii) of the
Federal Deposit Insurance Act'' and inserting ``section
45(g)(2)(B)(iii) of the Federal Deposit Insurance
Act''; and
(B) by striking ``section 47(a)'' and inserting
``section 45(a)''; and
(4) in section 509(3)(A) (15 U.S.C. 6809(3)(A)), by
striking ``as described in section 4(k) of the Bank Holding
Company Act of 1956''.
(k) Home Owners' Loan Act.--Section 10(c) of the Home Owners' Loan
Act (12 U.S.C. 1467a(c)) is amended--
(1) in paragraph (2), by striking subparagraph (H); and
(2) in paragraph (9)(A), by striking ``permitted'' and all
that follows and inserting ``permitted under paragraph (1)(C)
or (2) of this subsection.''.
(l) Internal Revenue Code.--Section 864(f)(4)(C)(ii) of the
Internal Revenue Code of 1986 is amended by striking ``(within the
meaning of section 2(p) of the Bank Holding Company Act of 1956 (12
U.S.C. 1841(p))''.
(m) Payment, Clearing, and Settlement Supervision Act of 2010.--
Section 803(5)(A) of the Payment, Clearing, and Settlement Supervision
Act of 2010 (12 U.S.C. 5462(5)(A)) is amended--
(1) in clause (viii), by adding ``and'' at the end;
(2) in clause (ix), by striking ``; and'' and inserting a
period; and
(3) by striking clause (x).
(n) Securities Exchange Act of 1934.--The Securities Exchange Act
of 1934 (15 U.S.C. 78a et seq.) is amended--
(1) in section 3(a)(4)(B)(vi)(II) (15 U.S.C.
78c(a)(4)(B)(vi)(II)), by striking ``other than'' and all that
follows and inserting ``other than a registered broker or
dealer.''; and
(2) in section 3C(g)(3)(A) (15 U.S.C. 78c-3(g)(3)(A))--
(A) in clause (vi), by adding ``and'' at the end;
(B) in clause (vii), by striking the semicolon and
inserting a period; and
(C) by striking clause (viii).
(o) Title 11.--Title 11, United States Code, is amended--
(1) in section 101--
(A) in paragraph (25)(E), by striking ``, measured
in accordance with section 562'';
(B) in paragraph (47)(A)(v), by striking ``,
measured in accordance with section 562 of this
title''; and
(C) in paragraph (53B)(A)(vi), by striking ``,
measured in accordance with section 562'';
(2) in section 103(a), by striking ``555 through 557, and
559 through 562'' and inserting ``556, 557, and 561'';
(3) in section 362(b)--
(A) in paragraph (6), by striking ``555 or'' each
place that term appears;
(B) in paragraph (7), by striking ``(as defined in
section 559)'' each place that term appears;
(C) in paragraph (17), by striking ``(as defined in
section 560)'' each place that term appears; and
(D) in paragraph (27), by striking ``(as defined in
section 555, 556, 559, or 560)'' each place that term
appears and inserting ``(as defined in section 556)'';
(4) in section 502(g)--
(A) by striking ``(1)'' before ``A claim''; and
(B) by striking paragraph (2);
(5) in section 553--
(A) in subsection (a)--
(i) in paragraph (2)(B)(ii), by striking
``555, 556, 559, 560, or 561'' and inserting
``556 or 561''; and
(ii) in paragraph (3)(C), by striking
``555, 556, 559, 560, or 561'' and inserting
``556 or 561''; and
(B) in subsection (b)(1), by striking ``555, 556,
559, 560, 561'' and inserting ``556, 561'';
(6) in section 561(b)(1), by striking ``555, 556, 559, or
560'' and inserting ``556'';
(7) in section 741(7)(A)(xi), by striking ``, measured in
accordance with section 562'';
(8) in section 761(4)(J), by striking ``, measured in
accordance with section 562''; and
(9) in section 901(a), by striking ``555, 556, 557, 559,
560, 561, 562'' and inserting ``556, 557, 561''.
<all>