Page:United States Statutes at Large Volume 113 Part 2.djvu/341

 PUBLIC LAW 106-102—NOV. 12, 1999 113 STAT. 1361 "(ii) submitted a plan to the Board for approval to cease the activity or correct the condition in a timely manner (which shall not exceed 1 year); and Hjr «(g) implemented procedures that are reasonably adapted to avoid the reoccurrence of such condition or activity.", (f) FOREIGN BANK SUBSIDIARIES OF LIMITED PURPOSE CREDIT CARD BANKS.— Section 4(f) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(f)) is amended by adding at the end the following new paragraph: " (14) FOREIGN BANK SUBSIDIARIES OF LIMITED PURPOSE CREDIT CARD BANKS.— "(A) IN GENERAL.—An institution described in section 2(c)(2)(F) may control a foreign bank if— "(i) the investment of the institution in the foreign bank meets the requirements of section 25 or 25A of the Federal Reserve Act and the foreign bank qualifies under such sections; "(ii) the foreign bank does not offer any products ^^ or services in the United States; and Ij "(iii) the activities of the foreign bank are permissible under otherwise applicable law. "(B) OTHER LIMITATIONS INAPPLICABLE.—The limita- Ail tions contained in any clause of section 2(c)(2)(F) shall ?•3 ' '" not apply to a foreign bank described in subparagraph (A) that is controlled by an institution described in such section.". SEC. 108. USE OF SUBORDINATED DEBT TO PROTECT FINANCIAL 12 USC 4801 SYSTEM AND DEPOSIT FUNDS FROM "TOO BIG TO FAIL" note. INSTITUTIONS. (a) STUDY REQUIRED.— The Board of Governors of the Federal Reserve System and the Secretary of the Treasury shall conduct a study of— (1) the feasibility and appropriateness of establishing a requirement that, with respect to large insured depository i institutions and depository institution holding companies the failure of which could have serious adverse effects on economic conditions or financial stability, such institutions and holding companies maintain some portion of their capital in the form of subordinated debt in order to bring market forces and market discipline to bear on the operation of, and the assessment of the viability of, such institutions and companies and reduce the risk to economic conditions, financial stability, and any deposit insurance fund; (2) if such requirement is feasible and appropriate, the appropriate amount or percentage of capital that should be subordinated debt consistent with such purposes; and (3) the manner in which any such requirement could be incorporated into existing capital standards and other issues relating to the transition to such a requirement. (b) REPORT.—Before the end of the 18-month period beginning on the date of the enactment of this Act, the Board of Governors of the Federal Reserve System and the Secretary of the Treasury shall submit a report to the Congress containing the findings and conclusions of the Board and the Secretary in connection with

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