Bank Holding Company Amendments of 1979

Bank Holding Company Amendments of 1979 - Amends the Bank Holding Company Act of 1956 to prohibit bank mergers or acquisitions by bank holding companies if such transactions would result in a monopoly, furtherance of a combination or conspiracy to monopolize, or substantially lessen competition in any section of the country unless such anticompetitive effects are clearly outweighed in the public interest by the probable effect of the transaction in meeting the convenience and needs of the community to be served. Prohibits such transactions if the Board of Governors of the Federal Reserve System finds that as a result of such transaction any one bank or holding company will control more than 20 percent of the banking assets held by banks in the States in which such bank or holding company is located. Excepts from such 20 percent prohibition a transaction which the Board finds to be immediately necessary to prevent the probable failure of a bank and that a less anticompetitive alternative is not available. Gives the Board discretion to prohibit such a transaction even if it is not disallowed by any other part of this Act if it is found to have probable adverse effects on competition or market concentration which are not clearly outweighed by the public interest.

Gives the Department of Justice an independent right to seek a court injunction for any violation of this Act. Gives the district courts of the United States jurisdiction to prevent and restrain violations of this Act.

Restricts standards for the entry of bank holding companies into bank related activities by stating that such companies may not enter into such activities unless they are so closely and directly related to banking or managing or controlling banks that they are considered a proper and necessary incident thereto. Requires that such activity be likely to produce substantial benefits to the public which clearly and significantly outweigh possible adverse affects. Declares not closely related to banking, specified activities relating to insurance, securities, investments, banking at excessive interest rates, real estate, and the leasing of motor vehicles.

Allows a bank holding company to continue specified activities so long as it has continuously engaged in those activities.

Prohibits enlargement of the scope or size of such activities to any significant degree if they do not conform to the substantial benefit test of this Act. Permits the Federal Reserve Board to terminate such continuous activities if it determines that they are of an anticompetitive nature inconsistent with the purposes of this Act.

Excludes from the definition of the term "bank", savings banks, Morris Plan banks, industrial banks or loan companies, consumer finance institutions, and thrift institutions.

Prohibits national banking associations and District banks from engaging in those activities this Act specifies as not closely related to banking.