To impose appropriate limitations on affiliations with certain member banks.

SA 3884. Ms. CANTWELL (for herself, Mr. McCain, Mr. Kaufman, Mr.
Harkin, Mr. Feingold, and Mr. Sanders) submitted an amendment intended
to be proposed to amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd
(for himself and Mrs. Lincoln)) to the bill S. 3217, to promote the
financial stability of the United States by improving accountability
and transparency in the financial system, to end ``too big to fail'',
to protect the American taxpayer by ending bailouts, to protect
consumers from abusive financial services practices, and for other
purposes; which was ordered to lie on the table; as follows:

At the end of subtitle C of title I, add the following:

SEC. 171. LIMITATIONS ON BANK AFFILIATIONS.

(a) Limitation on Affiliation.--The Banking Act of 1933 (12
U.S.C. 221a et seq.) is amended by inserting before section
21 the following:
``Sec. 20.  Beginning 1 year after the date of enactment of
the Restoring American Financial Stability Act of 2010, no
member bank may be affiliated, in any manner described in
section 2(b), with any corporation, association, business
trust, or other similar organization that is engaged
principally in the issue, flotation, underwriting, public
sale, or distribution at wholesale or retail or through
syndicate participation stocks, bonds, debenture, notes, or
other securities, except that nothing in this section shall
apply to any such organization which shall have been placed
in formal liquidation and which shall transact no business,
except such as may be incidental to the liquidation of its
affairs.''.
(b) Limitation on Compensation.--The Banking Act of 1933
(12 U.S.C. 221 et seq.) is amended by inserting after section
31 the following:
``Sec. 32.  Beginning 1 year after the date of enactment of
the Restoring American Financial Stability Act of 2010, no
officer, director, or employee of any corporation or
unincorporated association, no partner or employee of any
partnership, and no individual, primarily engaged in the
issue, flotation, underwriting, public sale, or distribution,
at wholesale or retail, or through syndicate participation,
of stocks, bonds, or other similar securities, shall serve
simultaneously as an officer, director, or employee of any
member bank, except in limited classes of cases in which the
Board of Governors of the Federal Reserve System may allow
such service by general regulations when, in the judgment of
the Board of Governors, it would not unduly influence the
investment policies of such member bank or the advice given
to customers by the member bank regarding investments.''.
(c) Prohibiting Depository Institutions From Engaging in
Insurance-Related Activities.--
(1) In general.--Beginning 1 year after the date of
enactment of this Act, and notwithstanding any other
provision of law, in no case may a depository institution
engage in the business of insurance or any insurance-related
activity.
(2) Definition.--As used in this section, the term
``business of insurance'' means the writing of insurance or
the reinsuring of risks by an insurer, including all acts
necessary to such writing or reinsuring and the activities
relating to the writing of insurance or the reinsuring of
risks conducted by persons who act as, or are, officers,
directors, agents, or employees of insurers or who are other
persons authorized to act on behalf of such persons.
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