INSIDER LENDING.

SEC. 334. INSIDER LENDING. (a) Loans to Executive Officers by Member Banks.— Section 22(g)(2) of the Federal Reserve Act (12 U.S.C. 375a(2)) is amended by striking “With the specific prior approval of its board of directors, a member” and inserting “A member”. (b) Extensions of Credit to Executive Officers, Directors, and Principal Shareholders of Member Banks.— Section 22(h)(8) of the Federal Reserve Act (12 U.S.C. 375b(8)) is amended— (1) by striking “member bank.—For” and inserting the following: “member bank.— “(A) In general.— For”; and (2) by adding at the end the following: “(B) Exception.— The Board may, by regulation, make exceptions to subparagraph (A), except as that subparagraph makes applicable paragraph (2), for an executive officer or director of a subsidiary of a company that controls the member bank, if that executive officer or director does not have authority to participate, and does not participate, in major policymaking functions of the member bank.”.