12 U.S.C. § 1828a — Prudential safeguards

Page 1128 TITLE 12—BANKS AND BANKING § 1828a ‘‘(c) DEFINITION.—For purposes of this section, the terms ‘appropriate Federal banking agency’, ‘deposit insurance fund’, and ‘insured depository institution’ have the same meanings as in section 3 of the Federal Deposit Insurance Act [12 U.S.C. 1813]. ‘‘(d) EFFECTIVE DATE.—This section shall apply after the end of the 60-day period beginning on the date of the enactment of this Act [Dec. 19, 1991].’’ ELIMINATION OF INTEREST RATE DIFFERENTIALS Pub. L. 97–320, title III, § 326(b)–(d), Oct. 15, 1982, 96 Stat. 1500, provided that: ‘‘(b)(1) Interest rate differentials for all categories of deposits or accounts between (i) any bank (other than a savings bank) the deposits of which are insured by the Federal Deposit Insurance Corporation, and (ii) any savings and loan, building and loan, or homestead asso- ciation (including cooperative banks) the deposits or accounts of which are insured by the Federal Savings and Loan Insurance Corporation or any mutual savings bank as defined in section 3(f) of the Federal Deposit Insurance Act (12 U.S.C. 1813(j)) [12 U.S.C. 1813(f)], shall be phased out on or before January 1, 1984. ‘‘(2) Any differential which is being phased out pursu- ant to a schedule established by regulations prescribed by the Depository Institutions Deregulation Com- mittee prior to the date of enactment of this Act [Oct. 15, 1982] shall be phased out as soon as practicable, but in no event later than such schedule provides. ‘‘(3) Notwithstanding any other provision of law, no differential for any category of deposits or accounts shall be established or maintained on or after January 1, 1984. ‘‘(c) No interest rate differential may be established or maintained in the case of the deposit account au- thorized pursuant to section 204(c) of the Depository In- stitutions Deregulation Act of 1980 [12 U.S.C. 3503(c)]. ‘‘(d) In the case of the elimination or reduction of any interest rate differential under subsection (b) with re- spect to any category of deposits or accounts between (1) any bank (other than a savings bank) the deposits of which are insured by the Federal Deposit Insurance Corporation and (2) any savings and loan, building and loan, or homestead association (including cooperative banks) the deposits or accounts of which are insured by the Federal Savings and Loan Insurance Corporation or any mutual savings bank as defined in section 3(f) of the Federal Deposit Insurance Act [12 U.S.C. 1813(f)], the maximum rate of interest which shall be estab- lished for such category of deposits for banks (other than savings banks) the deposits of which are insured by the Federal Deposit Insurance Corporation shall be equal to the highest rate of interest which savings and loan associations the deposits or accounts of which are insured by the Federal Savings and Loan Insurance Corporation were permitted to pay on such category of deposits immediately prior to the elimination or reduc- tion of such interest rate differential.’’ STATES HAVING CONSTITUTIONAL PROVISIONS REGARDING MAXIMUM INTEREST RATES Pub. L. 96–161, title II, § 213, Dec. 28, 1979, 93 Stat. 1240, provided that the provisions of title II of Pub. L. 96–161, which enacted subsec. (k) of this section and repealed provisions which had formerly amended this section, to continue to apply until July 1, 1981, in the case of any State having a constitutional provision regarding max- imum interest rates. INTEREST RATES; CONTROLS Reduction of interest rates to maximum extent fea- sible in light of prevailing money market and general economic conditions, see section 1 of Pub. L. 89–597, set out as a note under section 461 of this title. REINSTATEMENT OF WITHDRAWN OR ABANDONED APPLI- CATIONS MADE BEFORE FEBRUARY 21, 1966, FOR AP- PROVAL OF MERGERS Pub. L. 89–356, § 3, Feb. 21, 1966, 80 Stat. 10, provided that: ‘‘Any application for approval of a merger trans- action (as the term ‘merger transaction’ is used in sec- tion 18(c) of the Federal Deposit Insurance Act) [subsec. (c) of this section] which was made before the date of enactment of this Act [Feb. 21, 1966], but was with- drawn or abandoned as a result of any objections made or any suit brought by the Attorney General, may be reinstituted and shall be acted upon in accordance with the provisions of this Act without prejudice by such withdrawal, abandonment, objections, or judicial pro- ceedings.’’ SPECIAL ANTITRUST TREATMENT OF MERGER TRANS- ACTIONS CONSUMMATED BEFORE FEBRUARY 21, 1966, AND OF LITIGATION PENDING ON OR AFTER FEBRUARY 21, 1966, WITH RESPECT TO MERGER TRANSACTIONS CONSUMMATED AFTER JUNE 16, 1963 Pub. L. 89–356, § 2, Feb. 21, 1966, 80 Stat. 10, provided that: ‘‘(a) Any merger, consolidation, acquisition of assets, or assumption of liabilities involving an insured bank which was consummated prior to June 17, 1963, the bank resulting from which has not been dissolved or di- vided and has not effected a sale or distribution of as- sets and has not taken any other similar action pursu- ant to a final judgment under the antitrust laws prior to the enactment of this Act [Feb. 21, 1966], shall be conclusively presumed to have not been in violation of any antitrust laws other than section 2 of the Act of July 2, 1890 (section 2 of the Sherman Antitrust Act, 15 U.S.C. 2). ‘‘(b) No merger, consolidation, acquisition of assets, or assumption of liabilities involving an insured bank which was consummated after June 16, 1963, and prior to the date of enactment of this Act [Feb. 21, 1966] and as to which no litigation was initiated by the Attorney General prior to the date of enactment of this Act [Feb. 21, 1966] may be attacked after such date in any judicial proceeding on the ground that it alone and of itself constituted a violation of any antitrust laws other than section 2 of the Act of July 2, 1890 (section 2 of the Sherman Antitrust Act, 15 U.S.C. 2). ‘‘(c) Any court having pending before it on or after the date of enactment of this Act [Feb. 21, 1966] any litigation initiated under the antitrust laws by the At- torney General after June 16, 1963 with respect to the merger, consolidation, acquisition of assets, or assump- tion of liabilities of an insured bank consummated after June 16, 1963, shall apply the substantive rule of law set forth in section 18(c)(5) of the Federal Deposit Insurance Act [subsec. (c)(5) of this section], as amend- ed by this Act. ‘‘(d) For the purposes of this section, the term ‘anti- trust laws’ means the Act of July 2, 1890 (the Sherman Antitrust Act, 15 U.S.C. 1–7), the Act of October 15, 1914 (the Clayton Act, 15 U.S.C. 12–27), and any other Acts in pari materia.’’ § 1828a. Prudential safeguards (a) Comptroller of the Currency (1) In general The Comptroller of the Currency may, by regulation or order, impose restrictions or re- quirements on relationships or transactions between a national bank and a subsidiary of the national bank that the Comptroller finds are— (A) consistent with the purposes of this Act, title LXII of the Revised Statutes of the United States, and other Federal law appli- cable to national banks; and (B) appropriate to avoid any significant risk to the safety and soundness of insured depository institutions or the Deposit Insur- ance Fund or other adverse effects, such as undue concentration of resources, decreased or unfair competition, conflicts of interests, or unsound banking practices. Page 1129 TITLE 12—BANKS AND BANKING § 1828a (2) Review The Comptroller of the Currency shall regu- larly— (A) review all restrictions or requirements established pursuant to paragraph (1) to de- termine whether there is a continuing need for any such restriction or requirement to carry out the purposes of the Act, including the avoidance of any adverse effect referred to in paragraph (1)(B); and (B) modify or eliminate any such restric- tion or requirement the Comptroller finds is no longer required for such purposes. (b) Board of Governors of the Federal Reserve System (1) In general The Board of Governors of the Federal Re- serve System may, by regulation or order, im- pose restrictions or requirements on relation- ships or transactions— (A) between a depository institution sub- sidiary of a bank holding company and any affiliate of such depository institution (other than a subsidiary of such institution); or (B) between a State member bank and a subsidiary of such bank; if the Board makes a finding described in para- graph (2) with respect to such restriction or requirement. (2) Finding The Board of Governors of the Federal Re- serve System may exercise authority under paragraph (1) if the Board finds that the exer- cise of such authority is— (A) consistent with the purposes of this Act, the Bank Holding Company Act of 1956 [12 U.S.C. 1841 et seq.], the Federal Reserve Act [12 U.S.C. 221 et seq.], and other Federal law applicable to depository institution sub- sidiaries of bank holding companies or State member banks, as the case may be; and (B) appropriate to prevent an evasion of any provision of law referred to in subpara- graph (A) or to avoid any significant risk to the safety and soundness of depository insti- tutions or the Deposit Insurance Fund or other adverse effects, such as undue con- centration of resources, decreased or unfair competition, conflicts of interests, or un- sound banking practices. (3) Review The Board of Governors of the Federal Re- serve System shall regularly— (A) review all restrictions or requirements established pursuant to paragraph (1) or (4) to determine whether there is a continuing need for any such restriction or requirement to carry out the purposes of the Act, includ- ing the avoidance of any adverse effect re- ferred to in paragraph (2)(B) or (4)(B); and (B) modify or eliminate any such restric- tion or requirement the Board finds is no longer required for such purposes. (4) Foreign banks The Board may, by regulation or order, im- pose restrictions or requirements on relation- ships or transactions between a branch, agen- cy, or commercial lending company of a for- eign bank in the United States and any affil- iate in the United States of such foreign bank that the Board finds are— (A) consistent with the purposes of this Act, the Bank Holding Company Act of 1956, the Federal Reserve Act, and other Federal law applicable to foreign banks and their af- filiates in the United States; and (B) appropriate to prevent an evasion of any provision of law referred to in subpara- graph (A) or to avoid any significant risk to the safety and soundness of depository insti- tutions or the Deposit Insurance Fund or other adverse effects, such as undue con- centration of resources, decreased or unfair competition, conflicts of interests, or un- sound banking practices. (c) Federal Deposit Insurance Corporation (1) In general The Federal Deposit Insurance Corporation may, by regulation or order, impose restric- tions or requirements on relationships or transactions between a State nonmember bank (as defined in section 3 of the Federal De- posit Insurance Act [12 U.S.C. 1813]) and a sub- sidiary of the State nonmember bank that the Corporation finds are— (A) consistent with the purposes of this Act, the Federal Deposit Insurance Act [12 U.S.C. 1811 et seq.], or other Federal law ap- plicable to State nonmember banks; and (B) appropriate to avoid any significant risk to the safety and soundness of deposi- tory institutions or the Deposit Insurance Fund or other adverse effects, such as undue concentration of resources, decreased or un- fair competition, conflicts of interests, or unsound banking practices. (2) Review The Federal Deposit Insurance Corporation shall regularly— (A) review all restrictions or requirements established pursuant to paragraph (1) to de- termine whether there is a continuing need for any such restriction or requirement to carry out the purposes of the Act, including the avoidance of any adverse effect referred to in paragraph (1)(B); and (B) modify or eliminate any such restric- tion or requirement the Corporation finds is no longer required for such purposes. (Pub. L. 106–102, title I, § 114, Nov. 12, 1999, 113 Stat. 1369; Pub. L. 109–173, § 9(i), Feb. 15, 2006, 119 Stat. 3618.) Editorial Notes REFERENCES IN TEXT This Act and the Act, referred to in text, probably are references to Pub. L. 106–102, Nov. 12, 1999, 113 Stat. 1338, known as the Gramm-Leach-Bliley Act. For com- plete classification of this Act to the Code, see Short Title of 1999 Amendment note set out under section 1811 of this title and Tables. Title LXII of the Revised Statutes, referred to in sub- sec. (a)(1)(A), consists of R.S. §§ 5133 to 5244, which are classified to sections 16, 21, 22 to 24a, 25a, 25b, 26, 27, 29, 35 to 37, 39, 43, 52, 53, 55 to 57, 59 to 62, 66, 71, 72 to 76, Page 1130 TITLE 12—BANKS AND BANKING § 1828b 81, 83 to 86, 90, 91, 93, 93a, 94, 141 to 144, 161, 164, 181, 182, 192 to 194, 196, 215c, 481 to 485, 501, 541, 548, and 582 of this title. See, also, sections 8, 333, 334, 475, 656, 709, 1004, and 1005 of Title 18, Crimes and Criminal Proce- dure. For complete classification of R.S. §§ 5133 to 5244 to the Code, see Tables. The Bank Holding Company Act of 1956, referred to in subsec. (b)(2)(A), (4)(A), is act May 9, 1956, ch. 240, 70 Stat. 133, which is classified principally to chapter 17 (§ 1841 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 1841 of this title and Tables. The Federal Reserve Act, referred to in subsec. (b)(2)(A), (4)(A), is act Dec. 23, 1913, ch. 6, 38 Stat. 251, which is classified principally to chapter 3 (§ 221 et seq.) of this title. For complete classification of this Act to the Code, see References in Text note set out under sec- tion 226 of this title and Tables. The Federal Deposit Insurance Act, referred to in subsec. (c)(1)(A), is act Sept. 21, 1950, ch. 967, § 2, 64 Stat. 873, which is classified generally to this chapter. For complete classification of this Act to the Code, see Short Title note set out under section 1811 of this title and Tables. CODIFICATION Section was enacted as part of the Gramm-Leach-Bli- ley Act, and not as part of the Federal Deposit Insur- ance Act which comprises this chapter. AMENDMENTS 2006—Subsecs. (a)(1)(B), (b)(2)(B), (4)(B), (c)(1)(B). Pub. L. 109–173 substituted ‘‘the Deposit Insurance Fund’’ for ‘‘any Federal deposit insurance fund’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2006 AMENDMENT Amendment by Pub. L. 109–173 effective Mar. 31, 2006, see section 9(j) of Pub. L. 109–173, set out as a note under section 24 of this title. EFFECTIVE DATE Section effective 120 days after Nov. 12, 1999, see sec- tion 161 of Pub. L. 106–102, set out as an Effective Date of 1999 Amendment note under section 24 of this title. § 1828b. Interagency data sharing (a) In general To the extent not prohibited by other law, the Comptroller of the Currency, the Director of the Office of Thrift Supervision, the Federal Deposit Insurance Corporation, and the Board of Gov- ernors of the Federal Reserve System shall make available to the Attorney General and the Federal Trade Commission any data in the pos- session of any such banking agency that the antitrust agency deems necessary for antitrust review of any transaction requiring notice to any such antitrust agency or the approval of such agency under section 1842 or 1843 of this title, section 1828(c) of this title, the National Bank Consolidation and Merger Act [12 U.S.C. 215 et seq.], section 1467a of this title, or the antitrust laws. (b) Confidentiality requirements (1) In general Any information or material obtained by any agency pursuant to subsection (a) shall be treated as confidential. (2) Procedures for disclosure If any information or material obtained by any agency pursuant to subsection (a) is pro- posed to be disclosed to a third party, written notice of such disclosure shall first be pro- vided to the agency from which such informa- tion or material was obtained and an oppor- tunity shall be given to such agency to oppose or limit the proposed disclosure. (3) Other privileges not waived by disclosure under this section The provision by any Federal agency of any information or material pursuant to sub- section (a) to another agency shall not con- stitute a waiver, or otherwise affect, any privilege any agency or person may claim with respect to such information under Federal or State law. (4) Exception No provision of this section shall be con- strued as preventing or limiting access to any information by any duly authorized com- mittee of the Congress or the Comptroller General of the United States. (c) Banking agency information sharing The provisions of subsection (b) shall apply to— (1) any information or material obtained by any Federal banking agency (as defined in sec- tion 1813(z) of this title) from any other Fed- eral banking agency; and (2) any report of examination or other con- fidential supervisory information obtained by any State agency or authority, or any other person, from a Federal banking agency. (Pub. L. 106–102, title I, § 132, Nov. 12, 1999, 113 Stat. 1382.) Editorial Notes REFERENCES IN TEXT The National Bank Consolidation and Merger Act, re- ferred to in subsec. (a), is act Nov. 7, 1918, ch. 209, as added by Pub. L. 86–230, § 20, Sept. 8, 1959, 73 Stat. 460, which is classified generally to subchapter XVI (§ 215 et seq.) of chapter 2 of this title. For complete classifica- tion of this Act to the Code, see Short Title note set out under section 215 of this title and Tables. CODIFICATION Section was enacted as part of the Gramm-Leach-Bli- ley Act, and not as part of the Federal Deposit Insur- ance Act which comprises this chapter. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective 120 days after Nov. 12, 1999, see sec- tion 161 of Pub. L. 106–102, set out as an Effective Date of 1999 Amendment note under section 24 of this title. § 1829. Penalty for unauthorized participation by convicted individual (a) Prohibition (1) In general Except with the prior written consent of the Corporation— (A) any person who has been convicted of any criminal offense involving dishonesty or a breach of trust or money laundering, or has agreed to enter into a pretrial diversion or similar program in connection with a prosecution for such offense, may not—