Financial Institutions Supervisory Act Amendments

Financial Institutions Supervisory Act Amendments - Title I: Supervisory Authority over Depository Institutions - Creates civil penalties for specified insider loans and loans to affiliates prohibited by the Federal Reserve Act; for violations of reserve requirements under such Act; and for violations of the National Bank Act relating to one borrower loan limits.

Amends the Federal Reserve Act and the Federal Deposit Insurance Act to prohibit member banks and State nonmember banks from making loans to specified insiders where the amount of such loan, when aggregated with the amount of all other loans then outstanding by such bank to such insider, would exceed 25 percent of the limits on loans to a single borrower established by the Federal Reserve Act.

Grants cease and desist and removal authority to the Board of Governors of the Federal Reserve System with respect to bank holding companies and to the Federal Home Loan Bank Board with respect to savings and loan holding companies.

Sets forth civil penalties for violations of the Bank Holding Company Act.

Authorizes financial regulatory agencies, including the National Credit Union Administration and the Federal Home Loan Bank Board, to initiate cease and desist actions against officers, directors, stockholders, or any person participating in the affairs of a financial institution (as well as against the institution itself as is allowed current law) when there have been violations of laws and regulations or unsafe and unsound banking practices which are likely to seriously weaken the condition of the institution in question.

Amends the Federal Reserve Act to increase the allowable amount of loans which member banks may make to any executive officer for mortgages, education expenses, and other purposes.

Sets forth a procedure to be followed for removal of officers and directors for breach of fiduciary duty, which is defined as personal dishonesty or continuing disregard for the safety of the institution.

Creates a hearing process for removal of a bank officer or director based on an indictment for or conviction of a felony.

Title II: Interlocking Directors - Depository Institution Management Interlocks Act - Prohibits interlocking management and director relations between any depository institution located in the same metropolitan area, city, town or village as that in which an office of the other institution or any affiliate depository institution is located, or in any city, town or village contiguous or adjacent thereto. States that this prohibition applies without regard to geographical limits where such an institution has assets exceeding $1,000,000,000 and seeks an interlocking relationship with any institution with assets over $500,000,000. Permits any person who is operating as a management official and whose activity was not in violation of this Act at the beginning of such service to continue to serve in that position for a period of ten years after the enactment of this Act.

Delegates authority for the enforcement of this Act.

Title III: Foreign Branching - Amends the Federal Deposit Insurance Act to prohibit any State nonmember insured bank from operating any foreign branch without prior written consent of the Federal Deposit Insurance Corporation (FDIC). Permits such bank to acquire evidence of ownership in any foreign bank with such consent.

States that when the liabilities of an insured bank for deposits are assumed by another insured bank the following shall occur: (1) termination of the insured status of the bank whose liabilities are assumed on the date of receipt by the FDIC of evidence of such assumption; (2) termination of separate insurance of all assumed deposits at the end of six months from the effective date; and (3) notification of such assumption by the assuming bank to each of the depositors of the assumed bank.

Subjects performance of any bank services for a bank which is examined by a Federal supervisory agency to regulation by such agency. Requires such bank to notify such agency of the service relationship.

Title IV: Conflicts of Interest - Depository Institutions Conflict of Interest Act - Amends the Federal Reserve Act to provide for the appointment by the President of the Senate of a chairman and a vice chairman of the Federal Reserve Board.

Amends the Federal Deposit Insurance Act, the Federal Reserve Act, and the Federal Home Loan Bank Act to prohibit specified Presidential-appointee bank regulatory agency heads and members of such agencies from being employed within two years after they leave office by institutions under their regulatory jurisdiction or with a holding company of affiliate.

Makes changes to the salaries of the Board of Governors of the Federal Reserve System, the Chairman of the Board of Directors of the Federal Deposit Insurance Corporation, the Chairman of the Federal Home Loan Bank Board and the Comptroller of the Currency.

Title V: Credit Union Restructuring - Amends the Federal Credit Union Act to place the National Credit Union Administration under the management of a National Credit Union Administration Board.

Directs the Chairperson of such Board to be the spokesperson of the Board and to represent the Board and the National Credit Union Administration in its official relations with other branches of the Government.

Requires each Federal credit union to pay the Administration an annual operating fee and to make annual financial reports to the Board.

Title VI: Amendments to National Banking Laws - Makes changes with respect to the following: (1) the power of national banks to purchase, hold, and convey real property; (2) the trust powers of national banks; and (3) the emergency restrictions on Federal Reserve banks.

Title VII: Termination of National Bank Closed Receivership Fund - Directs the Comptroller of the Currency to disburse the liquidating dividends from national banks closed on or before January 22, 1934, held by the Comptroller in his capacity as successor to receivers of those banks.

Title VIII: Holding Companies - Eliminates the exemption for agricultural, labor, and horticultural organizations under the Bank Holding Company Act.

Permits the waiver of the 30 day notice requirement for acquisitions of banks by bank holding companies when the action would facilitate the acquisition of a failing bank.

Title IX: Extensions of Credit and Correspondent Balances - Prohibits the extension of loans to officers, directors and specified stockholders of banks which maintain correspondent accounts with the lending bank. Prohibits the establishment of a correspondent account where a loan to an insider already exists.

Sets forth civil penalties for violations of this Act.

Title X: Financial Institutions Examination Council - Financial Institutions Examination Council Act - Establishes a Financial Institutions Examination Council to prescribe uniform principles and standards for the Federal examination of financial institutions. Directs the Council to make recommendations for uniformity in other supervisory matters, including classification of loans subject to risk and identification of financial institutions in need of special supervisory attention.

Requires the Council to establish a liaison committee composed of five representatives of State supervisory agencies in order to encourage the application of uniform examination principles and standards by State and Federal supervisory agencies.

Authorizes the Comptroller of the Currency, upon the request of the Board of Governors of the Federal Reserve System, to examine foreign operations of State member banks.

Title XI: Effective Date - States that the provisions of this Act shall take effect 30 days after their enactment.