124 STAT. 1631 PUBLIC LAW 111–203—JULY 21, 2010 this subparagraph, the Board shall take into consider- ation the terms of investment for the hedge fund or private equity fund, including contractual obligations, the ability of the fund to divest of assets held by the fund, and any other factors that the Board deter- mines are appropriate. ‘‘(B) HEDGE FUND.—For the purposes of this paragraph, the term ‘hedge fund’ means any fund identified under subsection (h)(2), and does not include a private equity fund, as such term is used in section 203(m) of the Invest- ment Advisers Act of 1940 (15 U.S.C. 80b-3(m)).’’. SEC. 620. STUDY OF BANK INVESTMENT ACTIVITIES. (a) STUDY.— (1) IN GENERAL.—Not later than 18 months after the date of enactment of this Act, the appropriate Federal banking agen- cies shall jointly review and prepare a report on the activities that a banking entity, as such term is defined in the Bank Holding Company Act of 1956 (12 U.S.C. 1841 et. seq.), may engage in under Federal and State law, including activities authorized by statute and by order, interpretation and guid- ance. (2) CONTENT.—In carrying out the study under paragraph (1), the appropriate Federal banking agencies shall review and consider— (A) the type of activities or investments; (B) any financial, operational, managerial, or reputa- tion risks associated with or presented as a result of the banking entity engaged in the activity or making the invest- ment; and (C) risk mitigation activities undertaken by the banking entity with regard to the risks. (b) REPORT AND RECOMMENDATIONS TO THE COUNCIL AND TO CONGRESS.—The appropriate Federal banking agencies shall submit to the Council, the Committee on Financial Services of the House of Representatives, and the Committee on Banking, Housing, and Urban Affairs of the Senate the study conducted pursuant to sub- section (a) no later than 2 months after its completion. In addition to the information described in subsection (a), the report shall include recommendations regarding— (1) whether each activity or investment has or could have a negative effect on the safety and soundness of the banking entity or the United States financial system; (2) the appropriateness of the conduct of each activity or type of investment by banking entities; and (3) additional restrictions as may be necessary to address risks to safety and soundness arising from the activities or types of investments described in subsection (a). SEC. 621. CONFLICTS OF INTEREST. (a) IN GENERAL.—The Securities Act of 1933 (15 U.S.C. 77a et seq.) is amended by inserting after section 27A the following: ‘‘SEC. 27B. CONFLICTS OF INTEREST RELATING TO CERTAIN SECURITIZATIONS. ‘‘(a) IN GENERAL.—An underwriter, placement agent, initial purchaser, or sponsor, or any affiliate or subsidiary of any such entity, of an asset-backed security (as such term is defined in 15 USC 77z–2a. Deadline.
