AFFILIATIONS OF NONMEMBER INSURED BANKS.

SEC. 103. SECURITIES AFFILIATIONS OF NONMEMBER INSURED BANKS. (a) In General.— Section 18(j) of the Federal Deposit Insurance Act (12 U.S.C. 1828(j)) is amended by redesignating paragraph (3) (as amended by section 102(b)(2)) and paragraph (4) as paragraphs (4) and (5), respectively, and by inserting after paragraph (2) the following new paragraph: “(3) Securities Affiliations of Insured Nonmember Banks.— “(A) In general.— The provisions of section 20 of the Banking Act of 1933 (relating to affiliations between member banks and organizations engaged principally in certain securities activities), and the provisions of section 32 of the Banking Act of 1933 101 STAT. 567(relating to certain officer, director, or employee relationships involving a member bank and a person or organization primarily engaged in certain securities activities) shall apply to every insured nonmember bank in the same manner and to the same extent as if such insured nonmember bank were a member bank. “(B) Continuation of certain affiliations.— This paragraph shall not prohibit the continuation of such an affiliation or relationship which commenced before March 5, 1987, or the establishment of such an officer, director, or employee relationship in connection with any affiliation established before March 5, 1987. “(C) 2-year period.— An affiliation or officer, director, or employee relationship that becomes unlawful as a result of the enactment of this paragraph may continue for a period of 2 years after the date of enact ment of this paragraph. “(D) Foreign banks.— The provisions of this paragraph shall not apply to any foreign bank, as defined in section 1(b)(7) of the International Banking Act of 1978, solely because it has an insured branch in the United States, except that the provisions of section 32 of the Banking Act of 1933 shall apply to an insured branch as if it were an insured bank. “(E) Exceptions.— The provisions of this paragraph shall not apply to any institution described in subparagraph (D), (F), or (I) of section 2(c)(2) of the Bank Holding Company Act of 1956. “(F) Applicability.— This paragraph shall apply during the period beginning on March 6, 1987, and ending on March 1, 1988.”. (b) Technical and Conforming Amendment.— Section 18(j)(4)(A) of the Federal Deposit Insurance Act (12 U.S.C. 1828(j)) (as redesignated by subsection (a)) is amended by inserting “or any provision of section 20 of the Banking Act of 1933,” after “or any lawful regulation issued pursuant thereto,”.