Financial Safety and Equity Act of 2005 - Amends the Bank Holding Company Act of 1956 regarding interests in nonbanking organizations to provide that any company that controls an industrial loan company, industrial bank, or similar institution shall become a financial holding company.
Requires such entity to comply with all federal conditions, requirements, restrictions and limitations applicable to a financial holding company.
Grants a five-year divestiture period for nonconforming activities to an entity that: (1) owned or controlled an industrial loan company, industrial bank, or similar institution on January 1, 2005; and (2) was not a bank holding company or a foreign bank on that date.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3882 Introduced in House (IH)]
109th CONGRESS
1st Session
H. R. 3882
To preserve competitive equity in financial services.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 22, 2005
Mr. Leach introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To preserve competitive equity in financial services.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Financial Safety and Equity Act of
2005''.
SEC. 2. PRESERVATION OF COMPETITIVE EQUITY IN FINANCIAL SERVICES.
Section 4 of the Bank Holding Company Act of 1956 (12 U.S.C. 1843)
is amended by adding at the end the following new subsection:
``(p) Preservation of Competitive Equity in Financial Services.----
``(1) In general.--Any company that controls an industrial
loan company, industrial bank or similar institution described
in section 2(c)(2)(H) of this Act shall become a financial
holding company and shall comply with all of the conditions,
requirements, restrictions and limitations that apply to a
financial holding company under Federal law.
``(2) Extended divestiture period for nonconforming
activities.--Notwithstanding paragraph (1) of this subsection
or subsection (a), a company that owned or controlled an
industrial loan company, industrial bank or similar institution
described in section 2(c)(2)(H) on January 1, 2005, and that
was not a bank holding company or a foreign bank (as defined in
section 1(b)(7) of the International Banking Act of 1978) on
that date shall conform its activities and investments to the
requirements of this Act no later than the date that is 5 years
after the effective date of this subsection.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
Referred to the Subcommittee on Financial Institutions and Consumer Credit.
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