Proxmire Financial Modernization Act of 1988

Summary

Financial Modernization Act of 1987 - Title I: Securities Affiliates of Bank Holding Companies - Amends the Banking Act of 1933 to repeal specified provisions of such Act which: (1) bar member banks from affiliating with securities firms; and (2) prohibit member banks from employing officers, directors, or employees who are also employed by a firm primarily engaged in securities underwriting. Amends the Bank Holding Company Act of 1956 to allow bank holding companies to own shares of securities affiliates which engage in: (1) underwriting, distributing, or dealing in securities of any type; (2) securities brokerage, investment advisory, or other accepted securities activities; and (3) other activities permitted by the Board of Governors of the Federal Reserve System. Establishes criteria for Board approval of such acquisitions. Prohibits mergers between certain large banks or bank holding companies (those having assets of more than $30,000,000,000) and large securities firms (those having assets of more than $15,000,000,000). Establishes criteria (including a notice requirement) for bank holding company funding of securities affiliates. Establishes capital adequacy criteria to be used by the Board in determining whether a bank holding company meets the acquisition guidelines. Establishes restrictions on inter-affiliate transactions, including prohibiting a member bank from: (1) extending credit to the securities affiliate; or (2) purchasing the assets of the securities affiliate. Requires each appropriate Federal banking agency to establish a program for: (1) enforcing compliance with the requirements of this Act; and (2) responding to consumer complaints. Provides that bank holding companies having a securities affiliate that accounts for at least 80 percent of the company's revenues and assets shall not be subject to the inspection, examination, or reporting requirements of the Board. States that acquisition applications which are not acted upon by the Board within 91 days shall be deemed to be granted. Preempts State laws which are inconsistent with this Act. Amends the Federal Deposit Insurance Act to impose additional restrictions on securities affiliations of insured banks. Authorizes national banks to: (1) underwrite certain types of government bonds; (2) sponsor unit investment trusts; and (3) distribute investment company securities. Title II: Expedited Procedures - Amends the Bank Holding Company Act of 1956 to establish (under limited circumstances, where a company acquires control of a bank in a reorganization) expedited procedures for forming a bank holding company. Exempts such formations from specified registration requirements under the Securities Act of 1933. Requires any bank holding company seeking to engage in certain nonbanking activities (as determined by the Board) to notify the Board of such intentions. Allows the Board 60 days to: (1) disapprove the proposal; or (2) extend the time period for Board consideration. Provides limited exceptions from such notice requirements. Requires the Board, in determining whether to disapprove an application under this Act, to consider whether the activity described would produce benefits to the public. Allows the Board to reduce the post-approval waiting period for: (1) bank holding company acquisitions; and (2) bank mergers.

This text is taken from the official record. PoliticalRepo does not editorialize.

Timeline

1. 20 November 1987

   Introduced

   Read twice and referred to the Committee on Banking.

   Source: IntroReferral

2. 20 November 1987

   Introduced

   Introduced in Senate

   Source: IntroReferral

3. 1 December 1987

   Committee

   Committee on Banking, Housing, and Urban Affairs. Hearings held. Hearings printed: S.Hrg. 100-426.

   Source: Committee

4. 2 December 1987

   Committee

   Committee on Banking, Housing, and Urban Affairs. Hearings held. Hearings printed: S.Hrg. 100-426.

   Source: Committee

5. 3 December 1987

   Committee

   Committee on Banking, Housing, and Urban Affairs. Hearings held. Hearings printed: S.Hrg. 100-426.

   Source: Committee

6. 8 December 1987

   Committee

   Committee on Banking, Housing, and Urban Affairs. Hearings held. Hearings printed: S.Hrg. 100-426.

   Source: Committee

7. 9 December 1987

   Committee

   Committee on Banking, Housing, and Urban Affairs. Hearings held. Hearings printed: S.Hrg. 100-426.

   Source: Committee

8. 10 December 1987

   Committee

   Committee on Banking, Housing, and Urban Affairs. Hearings held. Hearings printed: S.Hrg. 100-426.

   Source: Committee

9. 2 March 1988

   Reported

   Committee on Banking. Ordered to be reported with an amendment in the nature of a substitute favorably.

   Source: Committee

10. 22 March 1988

    Calendars

    Placed on Senate Legislative Calendar under General Orders. Calendar No. 595.

    Source: Calendars

11. 22 March 1988

    Reported

    Committee on Banking. Reported to Senate by Senator Proxmire with an amendment in the nature of a substitute and an amendment to the title. With written report No. 100-305. Additional views filed.

    Source: Committee

12. 22 March 1988

    Reported

    Committee on Banking. Reported to Senate by Senator Proxmire with an amendment in the nature of a substitute and an amendment to the title. With written report No. 100-305. Additional views filed.

    Source: Committee

13. 30 March 1988

    Floor

    Measure laid before Senate.

    Source: Floor

14. 30 March 1988

    Vote

    Passed/agreed to in Senate: Passed Senate with amendments and an amendment to the Title by Yea-Nay Vote. 94-2. Record Vote No: 82.

    Source: Floor

15. 2 May 1988

    Introduced

    Referred to House Committee on Banking, Finance and Urban Affairs.

    Source: IntroReferral

16. 9 May 1988

    Referred

    Referred to Subcommittee on Telecommunications and Finance.

    Source: Committee

17. 12 May 1988

    Referred

    Referred to Subcommittee on Financial Institutions Supervision, Regulation and Insurance.

    Source: Committee

Votes

Versions

No version snapshots stored. Document URLs remain at the source.

Documents

3 official files

• Passed Senate amended

  summary · EN · 30 March 1988

  Open at official source

• Reported to Senate with amendment(s)

  summary · EN · 22 March 1988

  Open at official source

• Introduced in Senate

  summary · EN · 20 November 1987

  Open at official source

Sponsors

• Sen. Proxmire, William [D-WI] · D · Sponsor
• Sen. Garn, E. J. (Jake) [R-UT] · R · Sponsor
• · hsba00 · Standing
• · hsif00 · Standing
• · ssbk00 · Standing

Related records

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