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ISSUES	H.R.10 (as approved by the House Floor on July 1,1999)	S.900 (as approved by the Senate Floor on May 6,1999)	Gramm-Leach-Bliley Act (as approved by the House and the Senate on November 4,1999)
Holding Company Activities	Securities and Insurance underwriting are permitted in a holding company. Holding company may engage in activities financial in nature or incidental to financial activities. Regulators can deny a holding company's new activities if federal anti-redlining laws are violated by an affiliated insurer. Commercial activities are not permited, but activities complementary to financial activities are permitted as long as it remains small for holding companies. FRB and Treasury are required to submit a joint report every 4 years regarding financial,incidental and complimentary activities. The report would also list all commercial activities held by financial holding companies and whether such holdings have posted any safety and soundness problems. Holding company may add activities not yet determined to be financial up to 5% of gross revenue. (development basket) Holding company lawfully engaged in commercial activities on Sptember 30 1997 can retain non-financial activities for 10 years, as long as their financial activities represent at least 85% of the consolidated annual gross revenues. No expansion is allowed through merger, with the exception of a company that owns a broadcasting station, owned by an insurance company since January 1,1998.	Securities and Insurance underwriting are permitted in a holding company. Holding company may engage in activities financial in nature or incidental to financial activities. Securities and Insurance underwriting are permitted in a holding company. Activities complementary and any other services that the Fed determines do not pose a substantial risk to safety and soundness. No development basket provision.	Securities and Insurance underwriting are permitted in a holding company. Holding company may engage in activities which the Federal Reserve Board, subject to a Treasury coordinating process, determines is financial in nature or incidental to such financial activities. Commercial activities are not permited, but activities complementary to financial activities are permitted as long as it remains small for holding companies. FRB and Treasury are required to submit a joint report every 4 years regarding financial,incidental and complimentary activities. The report would also list all commercial activities held by financial holding companies and whether such holdings have posted any safety and soundness problems. Holding company lawfully engaged in commercial activities on Sptember 30 1997 can retain non-financial activities for at least 10 years but no more than 15 years, as long as their financial activities represent at least 85% of the consolidated annual gross revenues. No expansion is allowed through merger, with the exception of a company that owns a broadcasting station, owned by an insurance company since January 1,1998.
National Bank and its Operating Subsidiary Activities	Securities underwriting and merchant banking are permitted through subsidiaries of a national bank Insurance underwriting or real estate development are not permitted through subsidiaries of a national bank. Title insurance underwriting are not permitted for national banks or their subsidiaries, but existing authority is grandfathered as of the enactment date. Title insurance sales are allowed in any state that allows its state banks to sell title insurance, without requiring an express state authorization. National banks with $10 billion in assets or more must be subsidiaries of a holding company to be engaged in the new activities through operating subsidiaries. Municipal revenue bond underwriting is permitted for national banks and their subsidiaries.	Agency activities are permitted through operating subsidiaries, regardless of size of National banks. Securities and insurance underwriting are permitted through subsidiaries of a national bank, if the bank is under $1 billion in assets and does not have a holding company parent. Real estate develepment is not permitted through subsidiaries of a national bank. Title insurance underwriting is permitted for national banks and their subsidiaries. Municipal revenue bond underwriting is permitted for national banks and their subsidiaries.	Securities underwriting are permitted through subsidiaries of a well-capitalized and well-managed national bank, as long as the aggregate assets of all financial subsidiaries do not exceed the lesser of 45% of the total assets of the parent bank and $50 billion. Insurance underwriting, merchant banking (for five years from the enactment of the bill), or real estate investment & development is not permitted through subsidiaries of a national bank. Title insurance underwriting are not permitted for national banks or their subsidiaries, but existing authority is grandfathered as of the enactment date. Title insurance sales are allowed in any state that allows its state banks to sell title insurance, without requiring an express state authorization. Municipal revenue bond underwriting is permitted for national banks and their subsidiaries.
Other Securities Provisions	The current bank exemption from registration as a broker under the Securities Exchange Act is replaced with a list of specific exempt activities. The SEC, in consultation with FRB, is authorized to determine by rulemaking that a specific future product is a security and must be pushed-out to a broker-dealer affiliate. Banks can offer or sell traditional banking products, as defined in the section, without becoming subject to registration with the SEC. SEC authority language is adoped from the Commerce bill with certain bank-friendly adjustments. Federal banking regulators shall promptly notice SEC when depository institutions require their broker-dealers or investment companies to provide funds. SEC determines that funds shall not be transferred when such action has a material adverse effect on the subsidiaries. In that case, federal regulators may impose conditions or restrictions or may order divesture of the subsidiaries.	The current bank exemption from registration as a broder under the Securities Exchange Act is replaced with a list of specific exempt activities. The SEC, in consultation with FRB, is authorized to determine by rulemaking that a specific future product is a security and must be pushed-out to a broker-dealer affiliate. Banks can offer or sell traditional banking products, as defined in the section, without becoming subject to registration with the SEC. It is clarified that securities activities are regulated by securities regulators.	The functional regulation of bank securities activities is codified with detailed scope and limitations. The current bank exemption from registration as a broker under the Securities Exchange Act is replaced with a list of specific exempt activities, which covers transactions in connection with trust, safekeeping, custodian, employee benefit plans, sweep accounts, self-directed IRAs, third party networking arrangements to offer brokerage services to bank customers, etc. Banks can offer or sell traditional banking products, as defined in the section without becoming subject to registration with the SEC. Banks are allowed to continue derivatives business, including all credit swaps and equity swaps not offered to retail customers. The SEC, in consultation with FRB, is authorized to determine by rulemaking that a specific future product is a security and must be pushed-out to a broker-dealer affiliate. Federal banking regulators shall promptly notice SEC when depository institutions require their broker-dealers or investment companies to provide funds. SEC determines that funds shall not be transferred when such action has a material adverse effect on the subsidiaries. In that case, federal regulators may impose conditions or restrictions or may order divesture of the depository institutions. To address conflicts of interest, banks are required to register as investment advisors when mutual funds.
Other Insurance Provisions	Insurance is defined as the products regulated as insurance as of January 1,1999. Establish certain insurance products banks and bank subsdiaries may provide as principal. Insurance activities are functionally regulated by states, including national banks selling insurance, and states are given greater power such as blocking the acquisition of insurers by financial holding comapnies. Federal banking regulators shall promptly notice state insurance regulators when depository institutions require their insurance companies to provide funds. State insurance regulators determine that funds shall not be transferred when such action has a material adverse effect on the subsidiaries. In that case, federal regulators may impose conditions or restrictions or may order divesture of the subsidiaries. In the event of a regulatory conflict, a state insurance regulator and a federal regulator, the court must review under federal and state law. For agency issues, federal banking regulators would receive deference to preempt state laws adopted before September 3,1998, but for the state laws adopted after the date, the state and the federal regulator are not granted unequal deference. No unequal deference for underwriting issue. Thirteen areas of state insurance laws are protected from federal preemption. (a safe harbor) Outside the safe harbor, discrimination against banks selling insurance that have a discriminatory effect are preempted. It can also be subject to the Supreme Court's Barnett decision. State anti-affiliation laws are preempted. State laws to protect recently demutualized insurers from being acquired are respected for the period not exceeding 3 years. States may require organizations at any time since January 1, 1987 to claim the section 833 special deductions to meet conditions for reorganization, consolidation, demutualization, etc. Under certain conditions, mutual insurers are permitted to redomesticate in order to reorganize into mutual holding companies. Unless a majority of states have enacted uniform or reciprocity agent licensing laws and regulations within 3 years, NARAB, a private agent licensing organization would be created. Federal banking regulators are required to adopt consumer protection regulations such as disclosure requirement when depository institutions sell insurance products.	Insurance is defined as the products regulated as insurance as of January 1,1999. Insurance activities are functionally regulated by states. In the event of a regulatory conflict, a state insurance regulator and a federal regulator, the court must review under federal and state law. For agency issues, federal banking regulators would receive deference to preempt state laws adopted before September 3,1998, but for the state laws adopted after the date, the state and the federal regulator are granted equal deference. Equal deference for underwriting issue. Thirteen areas of state insurance laws are protected from federal preemption. (a safe harbor) Outside the safe harbor, discrimination against banks selling insurance that have a discriminatory effect are preempted, subject to the Supreme Court's Barnett decision. Title insurance is excluded from the 13 safe harbor provisions. State anti-affiliation laws are preempted, but it is not intended to limit the jurisdiction of State laws relating to the governance of corporations or other entities or the applicability of State antitrust laws or similar state laws. States should implement fully reciprocal licensing laws within 3 years, otherwise federal Congress would intervent. Federal banking regulators are required to adopt consumer protection regulations such as disclosure requirements when depository institutions sell insurance products.	Insurance is defined as the products regulated as insurance as of January 1,1999. Establish certain insurance products banks and bank subsdiaries may provide as principal. Insurance activities are functionally regulated by states, including national banks selling insurance. Federal banking regulators shall promptly notice state insurance regulators when depository institutions require their insurance companies to provide funds. State insurance regulators determine that funds shall not be transferred when such action has a material adverse effect on the subsidiaries. In that case, federal regulators may impose conditions or restrictions or may order divesture of the deposit intitutions. Thirteen areas of state insurance laws are protected from federal preemption. (a safe harbor) Outside the safe harbor, discrimination against banks selling insurance that have a discriminatory effect are preempted. It can also be subject to the Supreme Court's Barnett decision. In the event of a regulatory conflict, a state insurance regulator and a federal regulator, the court must review under federal and state law. For agency issues, federal banking regulators would receive deference to preempt state laws adopted before September 3,1998, but for the state laws adopted after the date, the state and the federal regulator are not granted unequal deference. No unequal deference for underwriting issue. State anti-affiliation laws are preempted. State laws to protect recently demutualized insurers from being acquired are respected unless it discriminates depository institutions. Under certain conditions, mutual insurers are permitted to redomesticate in order to reorganize into mutual holding companies. Unless a majority of states have enacted uniform or reciprocity agent licensing laws and regulations within 3 years, NARAB, a private agent licensing organization would be created. Federal banking regulators are required to establish consumer protection regulations when depository institutions sell insurance products. These federal standards would not apply when conflicted with state laws and regulations, except they are more strict than state rules.
Community Reinvestment Act	A holding company's bank affiliates and wholesale financial institutions are required to have and maintain a satisfactory or better CRA rating to engage in the new financial activities. National banks are required to have and maintain a satisfactory CRA rating to engage in the new financial activities through their operating subsidiaries. A study of the impact of this legilation on community lending.	A holding company is not required to have or maintain a satisfactory or better CRA rating to engage in the new financial activities. Depository institutions are deemed to be in compliance with CRA if their rating has been satisfactory or better during the immediately preceding 36 months. Small banks with less than $100 million in assets exempt from CRA requirement. All CRA-related agreements signed after May 5,1999 worth $10,000 or more per year should be disclosed. The agreements must be filed with federal bank and thrift regulators and made available to the public. Annual reports including data on loans, investments and services are also required.	A holding company's bank affiliates are required to have and maintain a satisfactory or better CRA rating to engage in the new financial activities. National banks are required to have and maintain a satisfactory CRA rating to engage in the new financial activities through their operating subsidiaries. A study of the impact of this legilation on community lending. Banks and thrifts no more than $250 million in assets with an outstanding CRA rating would be subjected to CRA examinations once every 5 years, and small banks and thrifts with an satisfactory CRA rating would be examined once every 4 years. Sunshine provision, with amendments, to require disclosure of CRA agreements. The provision to create Wholesale financial institutions, which would have not been subject to CRA requirement, was eliminated.
Thrift Provisions	Unitary thrift holding companies (UTHC) applied after March 4,1999 are permitted to engage only in financial, incidental and complementary activities. UTHCs existing or applied before March 4,1999 are grandfathered and permitted to engage in non-financial activities. The acquirers of UTHC can enjoy grandfathered power. The sale of UTHCs to commercial companies are permitted. The sale of UTHCs to commercial companies are permitted with the approval of FRB and OTS. Mutual thirft holding companies may engage in the new activities through holding company, while multiple thrift holding companies may not. SAIF special reserve is repealed.	Unitary thrift holding companies (UTHC) applied after May 4,1999 are permitted to engage only in financial, incidental, complementary and other activities as permitted for bank holding companies. UTHCs existing or applied before May 4,1999 are grandfathered and permitted to engage in non-financial activities. The acquirers of UTHC can enjoy grandfathered power. However, the sale of UTHCs to commercial companies are prohibited. Multiple thirft holding companies may engage in the new activities through holding company, while mutual thrift holding company continues to be prohibited from insurance agency business. SAIF special reserve is repealed. The extention of unequal FICO sharing by BIF and SAIF for 3 years was eliminated.	Unitary thrift holding companies (UTHC) applied after May 4,1999 are permitted to engage only in financial, incidental and complementary activities. UTHCs existing or applied before May 4,1999 are grandfathered and permitted to engage in non-financial activities. The acquirers of UTHC can enjoy grandfathered power. The sale of UTHCs to commercial companies are limited. SAIF special reserve is repealed.
Privacy Provisions	Obtaining of financial information from financial institutions by false means is prohibited, and criminal penalities may be provided. All financial institutions are imposed an "affirmative and continuing obligation" to respect the privacy of customers and to protect the security and confidentiality of customer's nonpublic personal information. Financial institutions may share consumer information with affiliated insurers or secrities companies, or legitimate joint ventures. Consumers have right to opt-out of the disclosure of their private information with unaffiliated third parties with limited exceptions for handling of consumer initiated transactions, consumer reporting, compliance, etc. A study of current information sharing among affiliates and unaffiliated third parties. Regulations are required to implement privacy protection and security standards. Regulatory authority to detect and enforce violations of consumer privacy requirement is enhanced. Insurance companies could not share consumers' medical and health information with their affiliates, subsidiaries or third parties, with certain exceptions, unless the consumers consent , or "opt in".	Criminal and civil penalties are provided for pretext calls, posing as customers to obtain confidential information from banks and other financial service providers. Federal banking regulators are required to establish a consumer grievance process to deal with privacy violations. GAO is required to prepare a report on the effectiveness of remedies for pretext calling.	To attempt to obtain private customer financial information through fraudulent or deceptive means such as "pretext calling." is a federal crime, punishable by up to five years in prison. All financial institutions are imposed an "affirmative and continuing obligation" to respect the privacy of customers and to protect the security and confidentiality of customer's nonpublic personal information. Financial institutions may share consumer information with affiliated insurers or secrities companies, or legitimate joint ventures. Consumers have right to opt-out, for the first time, of sharing their private information with unaffiliated third parties with exceptions for customer transactions, consumer reporting, compliance, etc. A financial institution could share information with companies performing functions on behalf of the institution or for joint marketing arrangements for financial services, as long as the institution disclose to the consumers and require the third party to keep confidentiality. Financial institutions are barred, with certain exceptions, from disclosing customer account numbers or access codes to unaffiliated third parties for telemarketing or other direct marketing purposes A study of current information sharing among affiliates and unaffiliated third parties. Privacy policy and disclosure of information are required to be disclosed annually. Federal and state regulators are required to establish comprehensive standards for ensuring the security and confidentiality of consumersEpersonal information. State laws with greater privacy protection are granted supremacy over the provision of this bill. Federal banking agencies and NCUA are authorized to prescribe joint regulations, and FRB is given authority to prescribe Fair Credit Reporting Act regulations for BHCs and their affiliates.
Other provisions	Federal banking regulators shall hold public hearings, as necessary, on proposed mergers, acquisitions and consolidations, when federally-insured depository institutions with more than $1 billion in assets are involved. A risk-based capital structure and a leverage capital requirement are provided for the Federal Home Loan Banks. GAO is required to study potential conflicts by Fed in its role as a regulator and a vendor to banks. Disclosure of ATM charges are required on ATM machines and on the screens of ATM machines. The source of strength doctrine was enhanced, protecting the federal banking agencies and the deposit insurance funds from claims brought by the bankruptcy trustee of a bank or other person for the return of capital infusions. SEC is required to consult and coordicate comments with the federal banking agencies on the issues of loan loss reserves. FRB is required to conduct a cost-benefit study of bank regulation. Banking agencies are required to report to Congress on applicability of banking regulations to internet banking. Treasury secretary are requred to conduct studies on federal electronic fund transfers. GAO is required to file three consective reports over a two year period to Congress regarding the actual economic impact of the Act on financial institutions.	Community banks are allowed to become Federal Home Loan Bank members without regard to the percentage of total assets represented by residential mortgage loans. GAO is required to study possible revisions to the capital structure of the Federal Home Loan Bank System.	Banks under $500 million in assets may use long-term advances for loans to small businesses, small farms and small agricultural business through federal home loan bank system. Capital standards are provided for the Federal Home Loan Banks. GAO is required to study possible revision to S corporation rules. GAO is required to study potential conflicts by Fed in its role as a regulator and a vendor to banks. Disclosure of ATM charges are required on ATM machines and on the screens of ATM machines. Consumers would be guaranteed the right to cancel a transaction before a fee is charged. The source of strength doctrine was enhanced, protecting the federal banking agencies and the deposit insurance funds from claims brought by the bankruptcy trustee of a bank or other person for the return of capital infusions. Federal banking regulators are required to use plain language in the rules after January 1, 2000. A loophole regarding off-shore insurance activities by banks are closed. Banking agencies are required to report to Congress on applicability of banking regulations to internet banking. Information sharing is authorized among FRB, federal regulators, and state regulators. Directors serving on the boards of public utility companies are allowed to serve on the boards of banks.

This color is for the contents in the bills approved by the House Banking Committee or the Senate Banking Committee.

This color is for the amendments at the House Commerce Subcommittee on Finance & Hazardous Materials.

This color is for the amendments at the House Full Committee on Commerce.

This color is for the amendments at the House Floor or the Senate Floor.

This color is for the contents in the Chairmen's Mark at the Conference Committee.

This color is for the amendments before the agreement at the Conference Committee.