PROHIBITION ON PARTICIPATION BY CONVICTED INDIVIDUALS.

SEC. 710. PROHIBITION ON PARTICIPATION BY CONVICTED INDIVIDUALS.(a) Extension of Automatic Prohibition.—Section 19 of the Federal Deposit Insurance Act (12 U.S.C. 1829) is amended by adding at the end the following new subsections:“(d) Bank Holding Companies.—“(1) In general.—Subsections (a) and (b) shall apply to any company (other than a foreign bank) that is a bank holding 120 STAT. 1991 company and any organization organized and operated under section 25A of the Federal Reserve Act or operating under section 25 of the Federal Reserve Act, as if such bank holding company or organization were an insured depository institution, except that such subsections shall be applied for purposes of this subsection by substituting ‘Board of Governors of the Federal Reserve System’ for ‘Corporation’ each place that term appears in such subsections.“(2) Authority of board.—The Board of Governors of the Federal Reserve System may provide exemptions, by regulation or order, from the application of paragraph (1) if the exemption is consistent with the purposes of this subsection.“(e) Savings and Loan Holding Companies.—“(1) In general.—Subsections (a) and (b) shall apply to any savings and loan holding company as if such savings and loan holding company were an insured depository institution, except that such subsections shall be applied for purposes of this subsection by substituting ‘Director of the Office of Thrift Supervision’ for ‘Corporation’ each place that term appears in such subsections.“(2) Authority of director.—The Director of the Office of Thrift Supervision may provide exemptions, by regulation or order, from the application of paragraph (1) if the exemption is consistent with the purposes of this subsection.”.(b) Enhanced Discretion To Remove Convicted Individuals.—Section 8(e)(2)(A) of the Federal Deposit Insurance Act (12 U.S.C. 1818(e)(2)(A)) is amended—(1) by striking “or” at the end of clause (ii);(2) by striking the comma at the end of clause (iii) and inserting “; or”; and“(3) by adding at the end the following new clause:“(iv) an institution-affiliated party of a subsidiary (other than a bank) of a bank holding company or of a subsidiary (other than a savings association) of a savings and loan holding company has been convicted of any criminal offense involving dishonesty or a breach of trust or a criminal offense under section 1956, 1957, or 1960 of title 18, United States Code, or has agreed to enter into a pretrial diversion or similar program in connection with a prosecution for such an offense,”.