A bill to strengthen the supervisory authority of the Federal banking agencies over financial institutions and their affiliates, to amend section 5146 of the Revised Statutes with respect to the qualifications of directors of national banks, to amend the Bank Housing Company Act of 1956 to provide special procedures for the acquisition of failing banks or bank holding companies and for the acquisition of banks or bank holding companies in emergencies, and to amend the Federal Deposit Insurance Act.

Summary

Title I: Supervision of Financial Institutions - Provides statutory authority for the Federal banking agencies to deal with unsafe or unsound banking practices. Revises the provisions of law relating to the regulatory agencies removal of officers or directors of banks where management has shown a willful disregard for the condition of the safety and soundness of the bank. Prohibits insider transactions to directors as well as officers of banks and their ownership interests. Imposes civil penalties for violations of the Federal Reserve Act, cease-and-desist orders and the Bank Holding Company Act. Authorizes the Federal Reserve to require divestiture where a bank holding company or its nonbank subsidiaries pose a serious risk to the banking subsidiaries of the holding company. Title II: National Bank Directors - Revises the section of the Bank Holding Company Act which requires that a director own stock in the association with which he serves. Allows persons to serve as director if they own stock in any association which owns all of the stock of the association with which he serves. Title III: Acquisition of Failing Banks and Bank Holding Companies - Provides for prompt action on any application for acquisition or merger when such action is necessary to prevent failure of a bank. Title IV: Miscellaneous Amendments to the Federal Deposit Insurance Act - Sets forth procedures dealing with the acquisition of foreign branches. Authorizes a State non-member insured bank, under specified restrictions, to acquire and hold stock in banks organized under the law of a foreign country. Reduces from three to two the number of directors required to attest to the validity of a report of condition. Provides that appropriate Federal banking agencies may serve a notice of charges or cease and desist against any bank or official engaging or about to engage in acts detrimental to the business of the bank. (Formerly, such service could be directed only at the bank involved). Specifies events which shall be assumed to relieve an insured bank of liability for deposits.

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• Introduced in House

  summary · EN · 9 October 1975

  Open at official source

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