§ 1848a. — Limitation on rulemaking, prudential, supervisory, and enforcement authority of the Board.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1848a]
TITLE 12--BANKS AND BANKING
CHAPTER 17--BANK HOLDING COMPANIES
Sec. 1848a. Limitation on rulemaking, prudential, supervisory,
and enforcement authority of the Board
(a) Limitation on direct action
The Board may not prescribe regulations, issue or seek entry of
orders, impose restraints, restrictions, guidelines, requirements,
safeguards, or standards, or otherwise take any action under or pursuant
to any provision of this chapter or section 1818 of this title against
or with respect to a functionally regulated subsidiary of a bank holding
company unless--
(1) the action is necessary to prevent or redress an unsafe or
unsound practice or breach of fiduciary duty by such subsidiary that
poses a material risk to--
(A) the financial safety, soundness, or stability of an
affiliated depository institution; or
(B) the domestic or international payment system; and
(2) the Board finds that it is not reasonably possible to
protect effectively against the material risk at issue through
action directed at or against the affiliated depository institution
or against depository institutions generally.
(b) Limitation on indirect action
The Board may not prescribe regulations, issue or seek entry of
orders, impose restraints, restrictions, guidelines, requirements,
safeguards, or standards, or otherwise take any action under or pursuant
to any provision of this chapter or section 1818 of this title against
or with respect to a bank holding company that requires the bank holding
company to require a functionally regulated subsidiary of the holding
company to engage, or to refrain from engaging, in any conduct or
activities unless the Board could take such action directly against or
with respect to the functionally regulated subsidiary in accordance with
subsection (a) of this section.
(c) Actions specifically authorized
Notwithstanding subsection (a) or (b) of this section, the Board may
take action under this chapter or section 1818 of this title to enforce
compliance by a functionally regulated subsidiary of a bank holding
company with any Federal law that the Board has specific jurisdiction to
enforce against such subsidiary.
(d) Functionally regulated subsidiary defined
For purposes of this section, the term ``functionally regulated
subsidiary'' has the meaning given the term in section 1844(c)(5) of
this title.
(May 9, 1956, ch. 240, Sec. 10A, as added Pub. L. 106-102, title I,
Sec. 113, Nov. 12, 1999, 113 Stat. 1368.)
Effective Date
Section effective 120 days after Nov. 12, 1999, see section 161 of
Pub. L. 106-102, set out as an Effective Date of 1999 Amendment note
under section 24 of this title.
Section Referred to in Other Sections
This section is referred to in section 1831v of this title.
