Sec. 46. SAFETY AND SOUNDNESS FIREWALLS APPLICABLE TO FINANCIAL SUBSIDIARIES OF BANKS
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## SEC. 46 SAFETY AND SOUNDNESS FIREWALLS APPLICABLE TO FINANCIAL SUBSIDIARIES OF BANKS **[**[12 U.S.C. 1831w](/us/usc/t12/s1831w)**]** ###
(a)In General An insured State bank may control or hold an interest in a subsidiary that engages in activities as principal that would only be permissible for a national bank to conduct through a financial subsidiary if— ####
(1)the State bank and each insured depository institution affiliate of the State bank are well capitalized (after the capital deduction required by paragraph (2)); ####
(2)the State bank complies with the capital deduction and financial statement disclosure requirements in section 5136A(c) of the Revised Statutes of the United States; ####
(3)the State bank complies with the financial and operational safeguards required by section 5136A(d) of the Revised Statutes of the United States; and ####
(4)the State bank complies with the amendments to sections 23A and 23B of the Federal Reserve Act made by section 121(b) of the Gramm-Leach-Bliley Act. ###
(b)Preservation of Existing Subsidiaries Notwithstanding subsection (a), an insured State bank may retain control of a subsidiary, or retain an interest in a subsidiary, that the State bank lawfully controlled or acquired before the date of the enactment of the Gramm-Leach-Bliley Act, and conduct through such subsidiary any activities lawfully conducted in such subsidiary as of such date. ###
(c)Definitions For purposes of this section, the following definitions shall apply: ####
(1)Subsidiary The term “**subsidiary**” means any company that is a subsidiary (as defined in section 3(w)(4)) of 1 or more insured banks. ####
(2)Financial subsidiary The term “**financial subsidiary**” has the meaning given the term in section 5136A(g) of the Revised Statutes of the United States. ###
(d)Preservation of Authority ####
(1)Federal deposit insurance act No provision of this section shall be construed as superseding the authority of the Federal Deposit Insurance Corporation to review subsidiary activities under section 24. ####
(2)Federal reserve act No provision of this section shall be construed as affecting the applicability of the 20th undesignated paragraph of section 9 of the Federal Reserve Act.
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Sec. 46
SAFETY AND SOUNDNESS FIREWALLS APPLICABLE TO FINANCIAL SUBSIDIARIES OF BANKS
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