S.Amdt. 4088

SA 4088. Mr. BAYH 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:

On page 486, strike lines 1 through 12 and insert the
following:
(3) the term ``sponsoring''--
(A) when used with respect to a hedge fund or private
equity fund, means--
(i) serving as a general partner, managing member, or
trustee of the fund;
(ii) in any manner selecting or controlling (or having
employees, officers, directors, or agents who constitute) a
majority of the directors, trustees, or management of the
fund; or
(iii) sharing with the fund, for corporate, marketing,
promotional, or other purposes, the same name or a variation
of the same name; and
(B) does not include an activity of a banking entity with
respect to a hedge fund or private equity fund, if--
(i) the banking entity provides bona fide trust, fiduciary
or investment advisory services;
(ii) the fund is sponsored and offered only in connection
with the provision of bona fide trust, fiduciary, or
investment advisory services and only to persons that are
customers of such services of the banking entity;
(iii) the banking entity does not acquire or retain an
equity interest, economic partnership interest, or ownership
interest in the fund, other than a partnership or ownership
interest acquired or retained solely in connection with the
provision of bona fide trust, fiduciary, or investment
advisory services;
(iv) the banking entity does not enter into or otherwise
engage in any transaction with the fund that is a covered
transaction, as defined in section 23A of the Federal Reserve
Act (12 U.S.C. 371c);
(v) the obligations of the fund are not guaranteed,
directly or indirectly, by the banking entity or any
subsidiary or affiliate of the banking entity; and
(vi) the banking entity does not share with the fund, for
corporate, marketing, promotional, or other purposes, the
same name or a variation of the same name.
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