101 STAT. 558
PUBLIC LAW 100-86—AUG. 10, 1987
"(f) CERTAIN COMPANIES.—
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COMPANIES
NOT
TREATED
AS
BANK
HOLDING
"(1) IN GENERAL.—Except as provided in paragraph (9), any company which— "(A) on March 5, 1987, controlled an institution which became a bank as a result of the enactment of the CompetiA} tive Equality Amendments of 1987; and "(B) was not a bank holding company on the day before the date of the enactment of the Competitive Equality Amendments of 1987, shall not be treated as a bank holding company for purposes of this Act solely by virtue of such company's control of such institution. "(2) Loss OF EXEMPTION.—Paragraph (1) shall cease to apply to any company described in such paragraph if— "(A) such company directly or indirectly— "(i) acquires control of an additional bank or an insured institution (other than an insured institution described in paragraph (10) of this subsection) after March 5, 1987; or
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"(ii) acquires control of more than 5 percent of the shares or assets of an additional bank or an insured institution other than— "(I) shares acquired in a bona fide fiduciary capacity; "(II) shares held temporarily pursuant to an underwriting commitment in the normal course of an underwriting business; "(III) shares held in an account solely for trading purposes; "(IV) loans or other accounts receivable acquired .;. V in the normal course of business; and "(V) shares or assets of an insured institution described in paragraph (10) of this subsection; or "(B) any bank subsidiary of such company fails to comply with the restrictions contained in paragraph (3)(B). "(3) LIMITATION ON BANKS CONTROLLED BY PARAGRAPH COMPANIES.—
'
(D
"(A) FINDINGS.—The Congress finds that banks controlled by companies referred to in paragraph (1) may, because of relationships with affiliates, be involved in conflicts of interest, concentration of resources, or other effects adverse to bank safety and soundness, and may also be able to compete unfairly against banks controlled by bank holding companies by combining banking services with financial services not permissible for bank holding companies. The purpose of this paragraph is to minimize any such potential adverse effects or inequities by temporarily restricting the activities of banks controlled by companies referred to in paragraph (1) until such time as the Congress has enacted proposals to allow, with appropriate safeguards, all banks or bank holding companies to compete on a more equal basis with banks controlled by companies referred to in paragraph (1) or, alternatively, proposals to permanently restrict the activities of banks controlled by companies referred to in paragraph (1).
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