Page:United States Statutes at Large Volume 124.djvu/1631

 124 STAT. 1605 PUBLIC LAW 111–203—JULY 21, 2010 ‘‘(2) ALTERNATING EXAMINATIONS PERMITTED.—The examinations required under subsection (b) may be conducted in joint or alternating manner with a State regulator, if the Board determines that an examination of a nondepository institution subsidiary conducted by the State carries out the purposes of this section. ‘‘(d) APPROPRIATE FEDERAL BANKING AGENCY BACKUP EXAMINA- TION AUTHORITY.— ‘‘(1) IN GENERAL.—In the event that the Board does not conduct examinations required under subsection (b) in the same manner, subject to the same standards, and with the same frequency as would be required if such activities were conducted by the lead insured depository institution subsidiary of the depository institution holding company, the appropriate Federal banking agency for the lead insured depository institution may recommend in writing (which shall include a written expla- nation of the concerns giving rise to the recommendation) that the Board perform the examination required under subsection (b). ‘‘(2) EXAMINATION BY AN APPROPRIATE FEDERAL BANKING AGENCY.—If the Board does not, before the end of the 60- day period beginning on the date on which the Board receives a recommendation under paragraph (1), begin an examination as required under subsection (b) or provide a written expla- nation or plan to the appropriate Federal banking agency making such recommendation responding to the concerns raised by the appropriate Federal banking agency for the lead insured depository institution, the appropriate Federal banking agency for the lead insured depository institution may, subject to the Consumer Financial Protection Act of 2010, examine the activi- ties that are permissible for a depository institution subsidiary conducted by such nondepository institution subsidiary (other than a functionally regulated subsidiary or a subsidiary of a depository institution) of the depository institution holding company as if the nondepository institution subsidiary were an insured depository institution for which the appropriate Federal banking agency of the lead insured depository institu- tion was the appropriate Federal banking agency, to determine whether the activities— ‘‘(A) pose a material threat to the safety and soundness of any insured depository institution subsidiary of the depository institution holding company; ‘‘(B) are conducted in accordance with applicable Fed- eral law; and ‘‘(C) are subject to appropriate systems for monitoring and controlling the financial, operating, and other material risks of the activities that may pose a material threat to the safety and soundness of the insured depository institution subsidiaries of the holding company. ‘‘(3) AGENCY COORDINATION WITH THE BOARD.—An appro- priate Federal banking agency that conducts an examination pursuant to paragraph (2) shall coordinate examination of the activities of nondepository institution subsidiaries described in subsection (b) with the Board in a manner that— ‘‘(A) avoids duplication; ‘‘(B) shares information relevant to the supervision of the depository institution holding company; Time period.