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U.S. Code as of:
01/19/04
Section 1848a. Limitation on rulemaking, prudential, supervisory, and enforcement authority of the Board
(a) Limitation on direct action
The Board may not prescribe regulations, issue or seek entry of
orders, impose restraints, restrictions, guidelines, requirements,
safeguards, or standards, or otherwise take any action under or
pursuant to any provision of this chapter or section 1818 of this
title against or with respect to a functionally regulated
subsidiary of a bank holding company unless -
(1) the action is necessary to prevent or redress an unsafe or
unsound practice or breach of fiduciary duty by such subsidiary
that poses a material risk to -
(A) the financial safety, soundness, or stability of an
affiliated depository institution; or
(B) the domestic or international payment system; and
(2) the Board finds that it is not reasonably possible to
protect effectively against the material risk at issue through
action directed at or against the affiliated depository
institution or against depository institutions generally.
(b) Limitation on indirect action
The Board may not prescribe regulations, issue or seek entry of
orders, impose restraints, restrictions, guidelines, requirements,
safeguards, or standards, or otherwise take any action under or
pursuant to any provision of this chapter or section 1818 of this
title against or with respect to a bank holding company that
requires the bank holding company to require a functionally
regulated subsidiary of the holding company to engage, or to
refrain from engaging, in any conduct or activities unless the
Board could take such action directly against or with respect to
the functionally regulated subsidiary in accordance with subsection
(a) of this section.
(c) Actions specifically authorized
Notwithstanding subsection (a) or (b) of this section, the Board
may take action under this chapter or section 1818 of this title to
enforce compliance by a functionally regulated subsidiary of a bank
holding company with any Federal law that the Board has specific
jurisdiction to enforce against such subsidiary.
(d) Functionally regulated subsidiary defined
For purposes of this section, the term "functionally regulated
subsidiary" has the meaning given the term in section 1844(c)(5) of
this title.
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