STUDY AND REPORT ON SUBSIDIARY REQUIREMENTS FOR FOREIGN BANKS.

SEC. 215. STUDY AND REPORT ON SUBSIDIARY REQUIREMENTS FOR FOREIGN BANKS. (a) In General.— The Secretary of the Treasury (hereafter referred to as the “Secretary”), jointly with the Board of Governors of the Federal Reserve System and in consultation with the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Attorney General, shall conduct a study of whether foreign banks should be required to conduct banking operations in the United States through subsidiaries rather than branches. In conducting the study, the Secretary shall take into account— (1) differences in accounting and regulatory practices abroad and the difficulty of assuring that the foreign bank meets United States capital and management standards and is adequately supervised; (2) implications for the deposit insurance system; (3) competitive equity considerations; (4) national treatment of foreign financial institutions; 105 STAT. 2305 (5) the need to prohibit money laundering and illegal payments; (6) safety and soundness considerations; (7) implications for international negotiations for liberalized trade in financial services; (8) the tax liability of foreign banks; (9) whether the establishment of subsidiaries by foreign banks to operate in the United States should be required only if United States Banks are authorized to engage in securities activities and interstate banking and branching; and (10) differences in treatment of United States creditors under the bankruptcy and receivership laws. (b) Report Required.— Not later than 1 year after the date of enactment of this Act, the Secretary shall transmit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Banking, Finance and Urban Affairs of the House of Representatives a report on the results of the study under subsection (a). Any additional or dissenting views of participating agencies shall be included in the report.