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Code · BILL · 113th Congress · S. 798 (Introduced in Senate) — To address equity capital requirements for financial institutions, bank holding companies, subsidiaries, and affiliat... · Sec. 5

Sec. 5. Limitation on the Federal safety net

260 words·~1 min read·/bill/113/s/798/is/section-5

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Except in connection with the resolution of any insured depository institution or financial company for which the Corporation has been appointed as receiver, no affiliate or subsidiary of a financial institution, or affiliate of an insured depository institution or nonbank financial institution may receive any assistance through— asset purchases made by the United States Government, loans from the United States Government, investments in debt or equity made by the United States Government, or capital injections from the United States Government; the Exchange Stabilization Fund, as established under section 2 of the Gold Reserve Act of 1934; the Deposit Insurance Fund established under section 11(a)(4) of the Federal Deposit Insurance Act ( 12 U.S.C. 1821(a)(4) ); the Board, pursuant to its authority under section 10B, 13, or 13A of the Federal Reserve Act ( 12 U.S.C. 347b , 342, and 343); or the Board, pursuant to its authority under the third paragraph of section 13 of the Federal Reserve Act ( 12 U.S.C. 343 ).
Subsection
(a)shall not apply to transactions or operations implementing monetary policy matters under the direction of the Federal Open Market Committee or the Board of Governors of the Federal Reserve System. Section 806 of the Dodd-Frank Wall Street Reform and Consumer Protection Act ( 12 U.S.C. 6455 ) is amended— by striking subsections
(a)through (c); and redesignating subsections
(d)and
(e)as subsections
(a)and (b), respectively. Section 13(c)(4)(G) of the Federal Deposit Insurance Act ( 12 U.S.C. 1823(c)(4) ) is amended— by striking subparagraph (G); and by redesignating subparagraph
(H)as subparagraph (G).
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