U.S Code last checked for updates: Nov 22, 2024
All TitlesTitle 12Chapter 16
§ 1831w.
Safety and soundness firewalls applicable to financial subsidiaries of banks
(a)
In general
An insured State bank may control or hold an interest in a subsidiary that engages in activities as principal that would only be permissible for a national bank to conduct through a financial subsidiary if—
(1)
the State bank and each insured depository institution affiliate of the State bank are well capitalized (after the capital deduction required by paragraph (2));
(2)
the State bank complies with the capital deduction and financial statement disclosure requirements in section 24a(c) of this title;
(3)
the State bank complies with the financial and operational safeguards required by section 24a(d) of this title; and
(4)
the State bank complies with the amendments to sections 23A and 23B of the Federal Reserve Act [12 U.S.C. 371c and 371c–1] made by section 121(b) of the Gramm-Leach-Bliley Act.
(b)
Preservation of existing subsidiaries
(c)
Definitions
For purposes of this section, the following definitions shall apply:
(1)
Subsidiary
(2)
Financial subsidiary
(d)
Preservation of authority
(1)
This chapter
(2)
Federal Reserve Act
(Sept. 21, 1950, ch. 967, § 2[46], as added Pub. L. 106–102, title I, § 121(d)(1), Nov. 12, 1999, 113 Stat. 1380.)
cite as: 12 USC 1831w
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