REPORTS AND EXAMINATIONS OF HOLDING COMPANIES; REGULATION OF FUNCTIONALLY REGULATED SUBSIDIARIES.

SEC. 604. REPORTS AND EXAMINATIONS OF HOLDING COMPANIES; REGULATION OF FUNCTIONALLY REGULATED SUBSIDIARIES.(a) Reports by Bank Holding Companies.—Sections 5(c)(1) of the Bank Holding Company Act of 1956 (12 U.S.C. 1844(c)(1)) is amended—(1) by striking subclause (A)(ii) and inserting the following:“(ii) compliance by the bank holding company or subsidiary with—“(I) this Act;“(II) Federal laws that the Board has specific jurisdiction to enforce against the company or subsidiary; and“(III) other than in the case of an insured depository institution or functionally regulated subsidiary, any other applicable provision of Federal law.”;(2) by striking subparagraph (B) and inserting the following:124 STAT. 1600 “(B) Use of existing reports and other supervisory information.—The Board shall, to the fullest extent possible, use—“(i) reports and other supervisory information that the bank holding company or any subsidiary thereof has been required to provide to other Federal or State regulatory agencies;“(ii) externally audited financial statements of the bank holding company or subsidiary;“(iii) information otherwise available from Federal or State regulatory agencies; and“(iv) information that is otherwise required to be reported publicly.”; and(3) by adding at the end the following:“(C) Availability.—Upon the request of the Board, the bank holding company or a subsidiary of the bank holding company shall promptly provide to the Board any information described in clauses (i) through (iii) of subparagraph (B).”.(b) Examinations of Bank Holding Companies.—Section 5(c)(2) of the Bank Holding Company Act of 1956 (12 U.S.C. 1844(c)(2)) is amended to read as follows:“(2) Examinations.—“(A) In general.—Subject to subtitle B of the Consumer Financial Protection Act of 2010, the Board may make examinations of a bank holding company and each subsidiary of a bank holding company in order to—“(i) inform the Board of—“(I) the nature of the operations and financial condition of the bank holding company and the subsidiary;“(II) the financial, operational, and other risks within the bank holding company system that may pose a threat to—“(aa) the safety and soundness of the bank holding company or of any depository institution subsidiary of the bank holding company; or“(bb) the stability of the financial system of the United States; and“(III) the systems of the bank holding company for monitoring and controlling the risks described in subclause (II); and“(ii) monitor the compliance of the bank holding company and the subsidiary with—“(I) this Act;“(II) Federal laws that the Board has specific jurisdiction to enforce against the company or subsidiary; and“(III) other than in the case of an insured depository institution or functionally regulated subsidiary, any other applicable provisions of Federal law.“(B) Use of reports to reduce examinations.—For purposes of this paragraph, the Board shall, to the fullest extent possible, rely on—124 STAT. 1601“(i) examination reports made by other Federal or State regulatory agencies relating to a bank holding company and any subsidiary of a bank holding company; and“(ii) the reports and other information required under paragraph (1).“(C) Coordination with other regulators.—The Board shall—“(i) provide reasonable notice to, and consult with, the appropriate Federal banking agency, the Securities and Exchange Commission, the Commodity Futures Trading Commission, or State regulatory agency, as appropriate, for a subsidiary that is a depository institution or a functionally regulated subsidiary of a bank holding company before commencing an examination of the subsidiary under this section; and“(ii) to the fullest extent possible, avoid duplication of examination activities, reporting requirements, and requests for information.”.(c) Authority To Regulate Functionally Regulated Subsidiaries of Bank Holding Companies.—The Bank Holding Company Act of 1956 (12 U.S.C. 1841 et seq.) is amended—(1) in section 5(c)(5)(B) (12 U.S.C. 1844(c)(5)(B)), by striking clause (v) and inserting the following:“(v) an entity that is subject to regulation by, or registration with, the Commodity Futures Trading Commission, with respect to activities conducted as a futures commission merchant, commodity trading adviser, commodity pool, commodity pool operator, swap execution facility, swap data repository, swap dealer, major swap participant, and activities that are incidental to such commodities and swaps activities.”; and(2) by striking section 10A (12 U.S.C. 1848a).(d) Acquisitions of Banks.—Section 3(c) of the Bank Holding Company Act of 1956 (12 U.S.C. 1842(c)) is amended by adding at the end the following:“(7) Financial stability.—In every case, the Board shall take into consideration the extent to which a proposed acquisition, merger, or consolidation would result in greater or more concentrated risks to the stability of the United States banking or financial system.”.(e) Acquisitions of Nonbanks.—(1) Notice procedures.—Section 4(j)(2)(A) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(j)(2)(A)) is amended by striking “or unsound banking practices” and inserting “unsound banking practices, or risk to the stability of the United States banking or financial system”.(2) Activities that are financial in nature.—Section 4(k)(6)(B) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(k)(6)(B)) is amended to read as follows:“(B) Approval not required for certain financial activities.—“(i) In general.—Except as provided in subsection (j) with regard to the acquisition of a savings association and clause (ii), a financial holding company may 124 STAT. 1602 commence any activity, or acquire any company, pursuant to paragraph (4) or any regulation prescribed or order issued under paragraph (5), without prior approval of the Board.“(ii) Exception.—A financial holding company may not acquire a company, without the prior approval of the Board, in a transaction in which the total consolidated assets to be acquired by the financial holding company exceed $10,000,000,000.“(iii) Hart-Scott-Rodino filing requirement.—Solely for purposes of section 7A(c)(8) of the Clayton Act (15 U.S.C. 18a(c)(8)), the transactions subject to the requirements of this paragraph shall be treated as if the approval of the Board is not required.”.(f) Bank Merger Act Transactions.—Section 18(c)(5) of the Federal Deposit Insurance Act (12 U.S.C. 1828(c)(5)) is amended, in the matter immediately following subparagraph (B), by striking “and the convenience and needs of the community to be served” and inserting “the convenience and needs of the community to be served, and the risk to the stability of the United States banking or financial system”.(g) Reports by Savings and Loan Holding Companies.—Section 10(b)(2) of the Home Owners’ Loan Act (12 U.S.C. 1467a(b)(2) is amended—(1) by striking “Each savings” and inserting the following:“(A) In general.—Each savings”; and(2) by adding at the end the following:“(B) Use of existing reports and other supervisory information.—The Board shall, to the fullest extent possible, use—“(i) reports and other supervisory information that the savings and loan holding company or any subsidiary thereof has been required to provide to other Federal or State regulatory agencies;“(ii) externally audited financial statements of the savings and loan holding company or subsidiary;“(iii) information that is otherwise available from Federal or State regulatory agencies; and“(iv) information that is otherwise required to be reported publicly.“(C) Availability.—Upon the request of the Board, a savings and loan holding company or a subsidiary of a savings and loan holding company shall promptly provide to the Board any information described in clauses (i) through (iii) of subparagraph (B).”.(h) Examination of Savings and Loan Holding Companies.—(1) Definitions.—Section 2 of the Home Owners’ Loan Act (12 U.S.C. 1462) is amended by adding at the end the following:“(10) Appropriate federal banking agency.—The term ‘appropriate Federal banking agency’ has the same meaning as in section 3(q) of the Federal Deposit Insurance Act (12 U.S.C. 1813(q)).“(11) Functionally regulated subsidiary.—The term ‘functionally regulated subsidiary’ has the same meaning as in section 5(c)(5) of the Bank Holding Company Act of 1956 (12 U.S.C. 1844(c)(5)).”.124 STAT. 1603(2) Examination.—Section 10(b) of the Home Owners’ Loan Act (12 U.S.C. 1467a(b)) is amended by striking paragraph (4) and inserting the following:“(4) Examinations.—“(A) In general.—Subject to subtitle B of the Consumer Financial Protection Act of 2010, the Board may make examinations of a savings and loan holding company and each subsidiary of a savings and loan holding company system, in order to—“(i) inform the Board of—“(I) the nature of the operations and financial condition of the savings and loan holding company and the subsidiary;“(II) the financial, operational, and other risks within the savings and loan holding company system that may pose a threat to—“(aa) the safety and soundness of the savings and loan holding company or of any depository institution subsidiary of the savings and loan holding company; or“(bb) the stability of the financial system of the United States; and“(III) the systems of the savings and loan holding company for monitoring and controlling the risks described in subclause (II); and“(ii) monitor the compliance of the savings and loan holding company and the subsidiary with—“(I) this Act;“(II) Federal laws that the Board has specific jurisdiction to enforce against the company or subsidiary; and“(III) other than in the case of an insured depository institution or functionally regulated subsidiary, any other applicable provisions of Federal law.“(B) Use of reports to reduce examinations.—For purposes of this subsection, the Board shall, to the fullest extent possible, rely on—“(i) the examination reports made by other Federal or State regulatory agencies relating to a savings and loan holding company and any subsidiary; and“(ii) the reports and other information required under paragraph (2).“(C) Coordination with other regulators.—The Board shall—“(i) provide reasonable notice to, and consult with, the appropriate Federal banking agency, the Securities and Exchange Commission, the Commodity Futures Trading Commission, or State regulatory agency, as appropriate, for a subsidiary that is a depository institution or a functionally regulated subsidiary of a savings and loan holding company before commencing an examination of the subsidiary under this section; and“(ii) to the fullest extent possible, avoid duplication of examination activities, reporting requirements, and requests for information.”.124 STAT. 1604(i) Definition of the Term “Savings and Loan Holding Company”.—Section 10(a)(1)(D)(ii) of the Home Owners’ Loan Act (12 U.S.C. 1467a(a)(1)(D)(ii)) is amended to read as follows:“(ii) Exclusion.—The term ‘savings and loan holding company’ does not include—“(I) a bank holding company that is registered under, and subject to, the Bank Holding Company Act of 1956 (12 U.S.C. 1841 et seq.), or to any company directly or indirectly controlled by such company (other than a savings association);“(II) a company that controls a savings association that functions solely in a trust or fiduciary capacity as described in section 2(c)(2)(D) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(c)(2)(D)); or“(III) a company described in subsection (c)(9)(C) solely by virtue of such company’s control of an intermediate holding company established pursuant to section 10A.”.(j) Effective Date.—The amendments made by this section shall take effect on the transfer date.