This title is also known as the Bank and Savings Association Holding Company and Depository Institution Regulatory Improvements Act of 2010.

This article discusses the key provisions of Title VI.

Government accountability office study of exceptions under the bank holding company act of 1956

The Comptroller General of the United States shall carry out a study to determine whether it is necessary, in order to strengthen the safety and soundness of institutions or the stability of the financial system. It will undertake a study that describes the size and geographic locations of the institutions. It will determine the extent to which these institutions are held by holding companies that are commercial firms. It will also ascertain whether the institutions have any affiliates that are commercial firms. It will also help identify the Federal banking agency responsible for the supervision of the institutions. They will be responsible to determine the adequacy of the Federal bank regulatory framework applicable to each category of institution, the holding company of the institution, and any other affiliate of the institution.

The study will evaluate the potential consequences of subjecting the institutions to the requirements of the Bank Holding Company Act of 1956, including with respect to the availability and allocation of credit, the stability of the financial system and the economy, the safe and sound operation of each category of institution, and the impact on the types of activities in which such institutions, and the holding companies of such institutions, may engage.

Savings Associations

With respect to institutions , the study required will determine the adequacy of the Federal bank regulatory framework applicable to such institutions ,including any restrictions (including limitations on affiliate transactions or cross-marketing) that apply to transactions between an institution, the holding company of the institution, and any other affiliate of the institution. The study will evaluate the potential consequences of subjecting the institutions to the requirements of the Bank Holding Company Act of 1956, including with respect to the availability and allocation of credit, the stability of the financial system and the economy.

A report of the same will be presented no later than 18 months of enactment of the Act. This report will be submitted by the Comptroller General to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House.

Where available the Board will use:

• reports and other supervisory information that the bank holding company or any subsidiary that has been required to provide to other Federal or State regulatory agencies.

• externally audited financial statements of the bank holding company or subsidiary

• information otherwise available from Federal or State regulatory agencies; and

• information that is otherwise required to be reported publicly.

The bank holding company or a subsidiary of the bank holding company shall promptly provide  any information to the board on request. The Board may make examinations of a bank holding company and each subsidiary of a bank holding company in order to:

• inform the Board of  the nature of the operations and financial condition of the bank holding company and the subsidiary
• the financial, operational, and other risks within the bank holding company system that may pose a threat to the safety and soundness of the bank holding company or of any depository institution subsidiary of the bank holding company; or the stability of the financial system of the United States; and  the systems of the bank holding company for monitoring and controlling the risks .
• monitor the compliance of the bank holding  law.

Coordination with other regulators:

The Board needs to provide reasonable notice to, and consult with, the appropriate Federal banking agency, the Securities and Exchange Commission, the Commodity Futures Trading Commission, or State regulatory agency, as appropriate, for a subsidiary that is a depository institution or a functionally regulated subsidiary of a bank holding company before commencing an examination of the subsidiary under this section to the fullest extent possible, avoid duplication of examination activities, reporting requirements, and requests for information.

Authority to regulate functionally stability: In every case, the Board shall take into consideration the extent to which a proposed acquisition, merger, or consolidation would result in greater or more concentrated risks to the stability of the United States banking or financial system.

Appropriate federal banking agency backup examination Authority. If the Board does not undertake an examination 60 after a request or provide a written explanation or plan to the appropriate Federal banking agency making such recommendation responding to the concerns raised by the appropriate Federal banking agency for the lead insured depository institution, the appropriate Federal banking agency for the lead insured depository institution may, subject to the Consumer Financial Protection Act of 2010, examine the activities that are permissible for a depository institution subsidiary conducted by such nondepository institution subsidiary (other than a functionally regulated subsidiary or a subsidiary of a depository institution) of the depository institution holding company .

It can examine as if the nondepository institution subsidiary were an insured depository institution for which the appropriate Federal banking agency of the lead insured depository institution was the appropriate Federal banking agency, to determine whether the activities pose a material threat to the safety and soundness of any insured depository institution subsidiary of the depository institution holding company. Whether they are  conducted in accordance with applicable Federal law  and  are subject to appropriate systems for monitoring and controlling the financial, operating, and other material risks of the activities that may pose a material threat to the safety and soundness of the insured depository institution subsidiaries of the holding company.

A national banking association may not convert to a State bank or State savings association during any period in which the national banking association is subject to a cease and desist order (or other formal enforcement order) issued by, or a memorandum of understanding entered into with, the Comptroller of the Currency with respect to a significant supervisory matter.’’.

Conversion of a state bank or savings association:

The Comptroller of the Currency may not approve the conversion of a State bank or State savings association to a national banking association or Federal savings association during any period in which the State bank or State savings association is subject to a cease and desist order (or other formal enforcement order) issued by, or a memorandum of understanding entered into with, a State bank supervisor or the appropriate Federal banking agency with respect to a significant supervisory matter or a final enforcement action by a State Attorney General.

Limitation on certain conversions by federal savings associations:

A Federal savings association may not convert to a State bank or State savings association during any period in which the Federal savings association is subject to a cease and desist order (or other formal enforcement order) issued by, or a memorandum of understanding entered into with, the Office of Thrift Supervision or the Comptroller of the Currency with respect to a significant supervisory matter.

Source of financial strength means the ability of a company that directly or indirectly owns or controls an insured depository institution to provide financial assistance to such insured depository institution in the event of the financial distress of the insured depository institution.

Not later than 6 months after the date of enactment of this section, the Financial Stability Oversight Council will make recommendations on implementing the provisions of this section so as to:

• promote and enhance the safety and soundness of banking entities:

• protect taxpayers and consumers and enhance financial stability by minimizing the risk that insured

• depository institutions and the affiliates of insured depository institutions will engage in unsafe and unsound activities;

• limit the inappropriate transfer of Federal subsidies from institutions that benefit from deposit insurance

• and liquidity facilities of the Federal Government to unregulated entities

• reduce conflicts of interest between the self interest of banking entities and nonbank financial companies supervised by the Board, and the interests of the customers of such entities and companies limit activities that have caused undue risk or loss in banking entities and nonbank financial companies supervised by the Board, or that might reasonably be expected to create undue risk or loss in such banking entities and nonbank financial companies supervised by the Board

• appropriately accommodate the business of insurance within an insurance company, subject to regulation in accordance with the relevant insurance company investment laws, while protecting the safety and soundness of any banking entity with which such insurance company is affiliated and of the United States financial system appropriately time the divestiture of illiquid assets that are affected by the implementation of the prohibitions under subsection