§ 1828a. — Prudential safeguards.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1828a]
TITLE 12--BANKS AND BANKING
CHAPTER 16--FEDERAL DEPOSIT INSURANCE CORPORATION
Sec. 1828a. Prudential safeguards
(a) Comptroller of the Currency
(1) In general
The Comptroller of the Currency may, by regulation or order,
impose restrictions or requirements on relationships or transactions
between a national bank and a subsidiary of the national bank that
the Comptroller finds are--
(A) consistent with the purposes of this Act, title LXII of
the Revised Statutes of the United States, and other Federal law
applicable to national banks; and
(B) appropriate to avoid any significant risk to the safety
and soundness of insured depository institutions or any Federal
deposit insurance fund or other adverse effects, such as undue
concentration of resources, decreased or unfair competition,
conflicts of interests, or unsound banking practices.
(2) Review
The Comptroller of the Currency shall regularly--
(A) review all restrictions or requirements established
pursuant to paragraph (1) to determine whether there is a
continuing need for any such restriction or requirement to carry
out the purposes of the Act, including the avoidance of any
adverse effect referred to in paragraph (1)(B); and
(B) modify or eliminate any such restriction or requirement
the Comptroller finds is no longer required for such purposes.
(b) Board of Governors of the Federal Reserve System
(1) In general
The Board of Governors of the Federal Reserve System may, by
regulation or order, impose restrictions or requirements on
relationships or transactions--
(A) between a depository institution subsidiary of a bank
holding company and any affiliate of such depository institution
(other than a subsidiary of such institution); or
(B) between a State member bank and a subsidiary of such
bank;
if the Board makes a finding described in paragraph (2) with respect
to such restriction or requirement.
(2) Finding
The Board of Governors of the Federal Reserve System may
exercise authority under paragraph (1) if the Board finds that the
exercise of such authority is--
(A) consistent with the purposes of this Act, the Bank
Holding Company Act of 1956 [12 U.S.C. 1841 et seq.], the
Federal Reserve Act [12 U.S.C. 221 et seq.], and other Federal
law applicable to depository institution subsidiaries of bank
holding companies or State member banks, as the case may be; and
(B) appropriate to prevent an evasion of any provision of
law referred to in subparagraph (A) or to avoid any significant
risk to the safety and soundness of depository institutions or
any Federal deposit insurance fund or other adverse effects,
such as undue concentration of resources, decreased or unfair
competition, conflicts of interests, or unsound banking
practices.
(3) Review
The Board of Governors of the Federal Reserve System shall
regularly--
(A) review all restrictions or requirements established
pursuant to paragraph (1) or (4) to determine whether there is a
continuing need for any such restriction or requirement to carry
out the purposes of the Act, including the avoidance of any
adverse effect referred to in paragraph (2)(B) or (4)(B); and
(B) modify or eliminate any such restriction or requirement
the Board finds is no longer required for such purposes.
(4) Foreign banks
The Board may, by regulation or order, impose restrictions or
requirements on relationships or transactions between a branch,
agency, or commercial lending company of a foreign bank in the
United States and any affiliate in the United States of such foreign
bank that the Board finds are--
(A) consistent with the purposes of this Act, the Bank
Holding Company Act of 1956, the Federal Reserve Act, and other
Federal law applicable to foreign banks and their affiliates in
the United States; and
(B) appropriate to prevent an evasion of any provision of
law referred to in subparagraph (A) or to avoid any significant
risk to the safety and soundness of depository institutions or
any Federal deposit insurance fund or other adverse effects,
such as undue concentration of resources, decreased or unfair
competition, conflicts of interests, or unsound banking
practices.
(c) Federal Deposit Insurance Corporation
(1) In general
The Federal Deposit Insurance Corporation may, by regulation or
order, impose restrictions or requirements on relationships or
transactions between a State nonmember bank (as defined in section 3
of the Federal Deposit Insurance Act [12 U.S.C. 1813]) and a
subsidiary of the State nonmember bank that the Corporation finds
are--
(A) consistent with the purposes of this Act, the Federal
Deposit Insurance Act [12 U.S.C. 1811 et seq.], or other Federal
law applicable to State nonmember banks; and
(B) appropriate to avoid any significant risk to the safety
and soundness of depository institutions or any Federal deposit
insurance fund or other adverse effects, such as undue
concentration of resources, decreased or unfair competition,
conflicts of interests, or unsound banking practices.
(2) Review
The Federal Deposit Insurance Corporation shall regularly--
(A) review all restrictions or requirements established
pursuant to paragraph (1) to determine whether there is a
continuing need for any such restriction or requirement to carry
out the purposes of the Act, including the avoidance of any
adverse effect referred to in paragraph (1)(B); and
(B) modify or eliminate any such restriction or requirement
the Corporation finds is no longer required for such purposes.
(Pub. L. 106-102, title I, Sec. 114, Nov. 12, 1999, 113 Stat. 1369.)
References in Text
This Act and the Act, referred to in text, probably are references
to Pub. L. 106-102, Nov. 12, 1999, 113 Stat. 1338, known as the Gramm-
Leach-Bliley Act. For complete classification of this Act to the Code,
see Short Title of 1999 Amendment note set out under section 1811 of
this title and Tables.
Title LXII of the Revised Statutes, referred to in subsec.
(a)(1)(A), consists of R.S. Secs. 5133 to 5244, which are classified to
sections 21, 22 to 24a, 25a, 26, 27, 29, 35 to 37, 39, 43, 52, 53, 55 to
57, 59 to 62, 66, 71, 72 to 76, 81, 83 to 86, 90, 91, 93, 93a, 94, 141
to 144, 161, 164, 181, 182, 192 to 194, 196, 215c, 481 to 485, 501, 541,
548, and 582 of this title. See, also, sections 8, 333, 334, 475, 656,
709, 1004, and 1005 of Title 18, Crimes and Criminal Procedure. For
complete classification of R.S. Secs. 5133 to 5244 to the Code, see
Tables.
The Bank Holding Company Act of 1956, referred to in subsec.
(b)(2)(A), (4)(A), is act May 9, 1956, ch. 240, 70 Stat. 133, as
amended, which is classified principally to chapter 17 (Sec. 1841 et
seq.) of this title. For complete classification of this Act to the
Code, see Short Title note set out under section 1841 of this title and
Tables.
The Federal Reserve Act, referred to in subsec. (b)(2)(A), (4)(A),
is act Dec. 23, 1913, ch. 6, 38 Stat. 251, as amended, which is
classified principally to chapter 3 (Sec. 221 et seq.) of this title.
For complete classification of this Act to the Code, see References in
Text note set out under section 226 of this title and Tables.
The Federal Deposit Insurance Act, referred to in subsec. (c)(1)(A),
is act Sept. 21, 1950, ch. 967, Sec. 2, 64 Stat. 873, as amended, which
is classified generally to this chapter. For complete classification of
this Act to the Code, see Short Title note set out under section 1811 of
this title and Tables.
Codification
Section was enacted as part of the Gramm-Leach-Bliley Act, and not
as part of the Federal Deposit Insurance Act which comprises this
chapter.
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 3106 of this title.