Gramm-Leach-Bliley Act

Gramm-Leach-Bliley Act - Title I: Facilitating Affiliation Among Banks, Securities Firms, and Insurance Companies - Subtitle A: Affiliations - Amends the Banking Act of 1933 (Glass-Steagall Act) to repeal prohibitions: (1) against affiliation of any Federal Reserve member bank with an entity engaged principally in securities activities (securities affiliate); and (2) against simultaneous service by any officer, director, or employee of a securities firm as an officer, director, or employee of any member bank (interlocking directorates). (Sec. 103) Amends the Bank Holding Company Act of 1956 (BHCA) to permit a financial holding company (FHC) to engage in any activity or to acquire the shares of any company whose activities have been determined by the Board of Governors of the Federal Reserve System (the Board), after mandatory consultation with the Secretary of the Treasury (Secretary), to be either financial in nature, or incidental or complementary to financial activities without posing a substantial risk to the safety and soundness of depository institutions, or of the financial system generally. Prescribes consultation and coordination guidelines. Permits the Board and the Secretary to authorize financial subsidiaries of banks to engage in merchant banking. Permits such financial activities upon the condition that all insured bank holding company (BHC) subsidiary depository institutions are well capitalized and well-managed, and upon BHC certification that they meet certain Board standards. Authorizes the appropriate Federal banking agency to prohibit an FHC or insured depository institution from commencing any new activity, or acquiring control of a company engaged in such activity, if any of its insured depository institution subsidiaries or affiliates failed to receive a satisfactory rating at its most recent examination under the Community Reinvestment Act of 1977 (CRA). Instructs the Board to apply capital and management standards that are comparable to a U.S. counterpart of a foreign bank that operates a branch or agency, or owns or controls a commercial lending company in the United States, giving due regard to the principle of national treatment and equality of competitive opportunity. Cites circumstances under which certain companies that become BHCs after enactment of this Act are authorized to continue their commodities transactions and affiliations. Sets forth cross-marketing restrictions for FHC-controlled depository institutions. Nullifies a BHC election to become an FHC if its subsidiary insured depository institutions failed to achieve a rating of "satisfactory record of meeting community credit needs" at its most recent examination. (Sec. 104) Retains the McCarran-Ferguson Act as the law of the United States. Proscribes any State laws which impede or restrict insurance sales activities by an insured depository institution. Enumerates permissible State restrictions upon certain insurance sales practices conducted by insured depository institutions. Preserves certain State regulatory oversight over insurance. Preempts certain State affiliation laws governing insurance companies and affiliates. Prohibits State regulation of the insurance activities of an insured depository institution or its affiliate that in any way discriminates adversely between insured depository institutions and other entities engaged in insurance activities. (Sec. 105) Mandates that mutual BHCs be regulated on the same terms as BHCs. (Sec. 106) Amends the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 to apply to any branch of a bank owned by an out-of-State BHC its prohibition against interstate branching by an out-of-state bank primarily to establish deposit production offices. (Sec. 107) Amends the BHCA with regard to: (1) overdraft errors; (2) divestiture requirements; and (3) foreign bank subsidiaries of limited purpose credit card banks. (Sec. 108) Directs the Board and the Secretary to study and report to Congress on the feasibility of requiring large insured depository institutions and depository institution holding companies whose failure could have serious adverse effects upon financial stability to maintain some portion of their capital in the form of subordinated debt in order to reduce the risk to any deposit insurance fund, and to minimize financial instability ("too big to fail syndrome"). (Sec. 109) Instructs the Secretary to study and report to Congress on the extent to which credit is being provided to small businesses and farms as a result of this Act. Subtitle B: Streamlining Supervision of Financial Holding Companies - Prohibits the Board from imposing any capital or capital adequacy criteria upon a BHC subsidiary that is not an insured depository institution, and is: (1) in compliance with State or Federal capitalization rules; (2) registered under the Investment Advisers Act of 1940; or (3) licensed as an insurance agent in the State. Prohibits the Board, when developing capital adequacy requirements, from taking into consideration any affiliated investment company which is neither a BHC, nor controlled by one holding 25 percent or more shares of the investment company worth more than $1 million. (Sec. 111) Subjects securities and insurance activities conducted by a functionally regulated subsidiary of a bank to the jurisdiction of the Securities and Exchange Commission (SEC) and State regulatory authority, respectively. (Sec. 112) Declares ineffective and non-enforceable any Board actions requiring an insurance company BHC or a registered securities broker-dealer BHC to provide assets to a subsidiary insured depository institution if either the State insurance authority or the SEC determines in writing that such actions would have a material adverse effect on the BHC's financial condition. Permits the Board to order divestiture of the subsidiary in lieu of other action. States that BHCA restraints placed upon Board authority over BHCs and their functionally regulated subsidiaries also limit the authority of the Federal banking agencies with respect to those companies and their subsidiaries. Allows the Federal Deposit Insurance Corporation (FDIC) to examine the affiliate of any depository institution to disclose fully its relationship with the institution, and the effect of that relationship on the institution. (Sec. 113) Prohibits the Board from taking certain statutory action against a functionally regulated BHC subsidiary unless it is necessary to prevent or redress an unsafe or unsound practice or breach of fiduciary duty that poses a material risk to the financial safety, soundness, or stability of either an affiliated depository institution or to the domestic or international payment systems. (Sec. 114) Sets forth criteria under which the Comptroller of the Currency, the Board, and the FDIC, are authorized to restrict with prudential safeguards the relationships or transactions between entities and subsidiaries under their respective jurisdictions. (Sec. 115) Denies a Federal banking agency examination authority over a registered investment company that is neither a BHC nor a savings and loan holding company. Grants the FDIC examination authority over an insured depository institution affiliate if necessary to determine the condition of the insured depository institution for insurance purposes. (Sec. 116) Provides that a declaration filed by a company seeking to be an FHC shall satisfy BHC registration requirements but not any requirement to file an application to acquire a bank. Revises BHCA divestiture procedures to permit a BHC to elect divestiture of either a nonbanking subsidiary or an insured depository institution. (Sec. 117) Amends the FDIA to prohibit the use of the Bank Insurance Fund and the Savings Association Insurance Fund (SAIF) to benefit any shareholder or affiliate (other than an insured depository institution receiving FDIA assistance) (currently only any shareholder) of any insured depository institution: (1) in Federal conservatorship or receivership; (2) in default or in danger of default, or (3) in connection with the provision of certain insurance or other specified assistance. (Sec. 118) Amends the BHCA of 1956 to repeal strictures governing activities of BHC subsidiaries in connection with insurance and savings bank life insurance. Subtitle C: Subsidiaries of National Banks - Amends Federal banking law to set forth a statutory framework within which a national bank may control or hold an interest in a financial subsidiary. Restricts such subsidiary to activities that are: (1) financial in nature; or (2) permissible for a national bank to engage in directly. Bars such subsidiary from engaging in certain insurance, or real estate development and investment activities. (Sec. 121) Prescribes guidelines for mandatory coordination between the Secretary and the Board with respect to any determination of whether an activity is financial in nature or incidental to a financial activity. Requires a national bank that establishes or maintains a financial subsidiary to have in place: (1) procedures for identifying financial and operational risks within the bank and its subsidiary that adequately protect the bank from such risks; and (2) procedures to preserve the separate corporate identity and limited liability of the bank and its subsidiary. Amends the Federal Reserve Act (FRA) to set forth: (1) statutory parameters for transactions between national banks and their financial subsidiaries; (2) a rebuttable presumption of control of portfolio companies; and (3) a deadline by which the Board must adopt final rules regarding derivative transactions and intraday credit. Amends the FDIA to set forth requirements for safety and soundness firewalls applicable to financial subsidiaries of insured State banks that are in compliance with this Act. Permits State banks to retain interests or control in subsidiaries acquired prior to enactment of this Act. (Sec. 122) Authorizes the Board and the Secretary to jointly adopt rules permitting financial subsidiaries to engage in certain merchant banking activities five years after enactment of this Act. Subtitle D: Preservation of FTC Authority - Amends the BHCA to require the Board to notify the Federal Trade Commission (FTC) of its approval of a proposed acquisition, merger, or consolidation which involves acquisition of nonbanking interests. (Sec. 132) Directs designated Federal banking agencies to make data available to the Attorney General and the FTC that they deem necessary for antitrust review under specified statutes. Prescribes confidentiality guidelines for such data and banking agency information sharing. (Sec. 133) Excludes from FTC jurisdiction any nondepository institution subsidiary or affiliate of a bank or savings association. Amends the Clayton Act to apply its premerger notification and waiting period requirements to any portion of a merger or acquisition transaction that does require notice under BHCA but does not require approval. Subtitle E: National Treatment - Amends the International Banking Act of 1978 (IBA) to terminate immediately the grandfathered authority of a foreign bank or company to engage in any (nonbanking) financial activity if it files a BHCA declaration to function as a qualified BHC engaging in activities or acquiring and retaining shares of a company not permissible for a BHC before enactment of this Act. Allows imposition of restrictions and requirements comparable to those imposed on a domestic FHC if a grandfathered foreign bank or company does not file such a declaration within two years after enactment of this Act. (Sec. 142) Amends the IBA to authorize the Board to examine any affiliate of a foreign bank conducting business in any State in which the Board deems it necessary to determine and enforce compliance with Federal banking law. Subtitle F: Direct Activities of Banks - Amends Federal banking law to provide that limitations placed on securities transactions by a national banking association for its own account do not apply to State, local, or municipal bond transactions by a well-capitalized national banking association. Subtitle G: Effective Date - Sets forth the effective date of title I of this Act. Title II: Functional Regulation - Subtitle A: Brokers and Dealers - Amends the Securities Exchange Act of 1934 (Exchange Act) to include certain bank activities within the definition of "broker" and "dealer" (thus subjecting them to registration requirements and regulation under the Exchange Act). (Sec. 203) Requires a registered securities association to create a limited qualification category, without a testing requirement, for certain bank employees effecting sales as part of a non-public primary securities offering (private placement sales). (Sec. 205) Prohibits the SEC from requiring a bank to register as a broker or dealer because it engages in new hybrid product transactions unless such requirement has been promulgated pursuant to rulemaking procedures in accordance with this Act. Prohibits the SEC from imposing a requirement regarding a new hybrid product unless it determines that such product is a security necessitating such requirement in the public interest and for investor protection. Prescribes procedural guidelines under which the Board may obtain judicial review of any final SEC regulation. (Sec. 206) Amends the Exchange Act to include a qualified Canadian government obligation within the definition of: (1) an identified financial product; (2) a swap agreement; (3) a qualified investor; and (4) a government security. Subtitle B: Bank Investment Company Activities - Amends the Investment Company Act of 1940 to authorize the SEC (after consultation with designated Federal banking agencies) to prescribe conditions under which a bank or its affiliate, in addition to serving as promoter, organizer, or principal underwriter for either a registered management company, or a registered unit investment trust, may also serve as custodian of such company or trust. (Sec. 212) Declares it unlawful for an affiliate, promoter, or principal underwriter for a registered investment company to lend to such company or its subsidiaries in contravention of SEC requirements. (Sec. 213) Revises the definition of "interested person" to identify transactions, services, and loans taking place during the six months preceding determination of an "interested person" which would make a person an affiliated person of a broker or dealer. Prohibits a registered investment company from having a majority of its board of directors composed of personnel or senior officers of the subsidiaries of any one bank, or of any single BHC, its affiliates, and subsidiaries. (Sec. 214) Modifies guidelines pertaining to unlawful misrepresentation of guarantees, and to the deceptive use of names. (Sec. 215) Redefines "broker" to exclude any person who would be deemed a broker solely by reason of the fact that such person is an underwriter for one or more investment companies. (Sec. 216) Redefines "dealer" to exclude an insurance or an investment company. (Sec. 217) Amends the Investment Advisers Act of 1940 to redefine "investment adviser" to remove the exclusion for banks that advise investment companies. Revises the definitions of broker and dealer. (Sec. 220) Mandates interagency sharing between a Federal banking agency and the SEC regarding examination results and other information pertaining to the investment advisory activities of a registered BHC and its separately identifiable departments or divisions. (Sec. 221) Amends the Securities Act of 1933 and the Exchange Act to exclude from their purview any interest or participation in any common trust fund (or similar fund) that is excluded from the definition of "investment company" under the Investment Company Act of 1940. Amends the Investment Company Act of 1940 to revise such exclusion guidelines for certain bank common trust funds. Subtitle C: Securities and Exchange Commission Supervision of Investment Bank Holding Companies - Amends the Exchange Act to permit certain investment BHCs without a bank or savings association affiliate to elect SEC supervision. (Sec. 231) Provides for voluntary withdrawal from SEC supervision by specified investment bank holding companies. Sets forth the parameters of SEC supervision of investment bank holding companies. Mandates SEC deference to regulatory banking agencies and State insurance regulators with respect to the banking and insurance laws under their respective purviews. Shields the SEC from compulsory disclosure (except to Congress) of certain information furnished by a domestic or foreign regulatory agency regarding the financial or operational condition of: (1) any associated person of a broker or dealer; or (2) any investment bank holding company or its affiliate. Subtitle D: Banks and Bank Holding Companies - Requires the SEC to consult and coordinate comments with the appropriate Federal banking agency before taking action or rendering an opinion regarding the manner in which an insured depository institution or depository institution holding company reports loan loss reserves in its financial statement, including the amount of such reserves. Title III: Insurance - Subtitle A: State Regulation of Insurance - Mandates State functional regulation of insurance sales activity (including a national bank exercising FRA agency powers). (Sec. 302) Prohibits a national bank and its subsidiaries from providing insurance as principal in a State, except for certain authorized products (which may not include title insurance or taxable annuity contracts). (Sec. 303) Prohibits national banks and subsidiaries from selling or underwriting title insurance, except for certain grandfathered banks and subsidiaries already doing so. Permits a national bank and its subsidiary to sell title insurance as agent in a State which permits its State banks to do so, subject to the same conditions. (Sec. 304) Establishes expedited dispute resolution for regulatory conflicts between State insurance regulators and Federal financial regulators. (Sec. 305) Amends the FDIA to direct the Federal banking agencies to issue consumer protection regulations that: (1) prohibit an insured depository institution from conditioning the extension of consumer credit upon insurance product purchases from the institution; (2) require physical segregation of banking activities from insurance product activities; and (3) prohibit discrimination against victims of domestic violence. Mandates that the Federal banking agencies jointly establish a consumer complaint mechanism to address expeditiously violations of this Act. (Sec. 306) Preempts State law restricting: (1) insurance companies or insurance affiliates from becoming an FHC or acquiring control of a depository institution; and (2) the amount of an insurer's assets that can be invested in a bank (except that the insurer's State of domicile may limit such investments to five percent of the insurer's admitted assets). Preempts State laws that restrict reorganization by an insurer from mutual form to stock form. (Sec. 307) Declares that it is the intention of Congress that the Federal Reserve Board, as the umbrella supervisor for financial holding companies, and the State insurance regulators, as the functional regulators of companies engaged in insurance activities, coordinate efforts (including confidential sharing of information on financial condition, risk management policies, operations, transactions, and institutional relationship) to supervise companies that control both a depository institution and a company engaged in insurance activities regulated under State law. Subtitle B: Redomestication of Mutual Insurers - Declares this title applicable only to a mutual insurance company in a State which has not enacted legislation expressly establishing reasonable terms for a mutual insurance company domiciliary to reorganize into a mutual holding company. (Sec. 312) Authorizes a mutual insurer organized under the laws of any State to transfer its domicile to another State pursuant to a reorganization in which such insurer becomes a stock insurer that is a subsidiary of a mutual holding company. Requires prospective redomesticating insurers to comply with specified reorganization requirements of the State insurance regulator of the transferee domicile. Preempts State laws restricting such redomestication. Subtitle C: National Association of Registered Agents and Brokers - Sets forth a regulatory framework for uniform multistate licensing for insurance sales practices, to take effect only if a majority of the States have not enacted uniform laws and regulations governing the licensure of insurance sales by individuals and entities within three years after enactment of this Act. (Sec. 322) Establishes the National Association of Registered Agents and Brokers (the Association) as a nonprofit, non-Federal agency to provide a mechanism for uniform licensing, appointment, continuing education, and other insurance producer sales qualification requirements which can be adopted and applied on a multistate basis, while preserving the right of States to regulate insurance producers and insurance-related consumer protection and unfair trade practices. (Sec. 324) Subjects the Association to regulation by the National Association of Insurance Commissioners. Requires the Association to establish an office of consumer complaints. Vests management of the Association in a board of directors. Cites circumstances under which Association rules preempt State regulation of insurance producers. Requires the Association to coordinate with the National Association of Securities Dealers in order to mitigate administrative burdens that may result from dual membership. Subtitle D: Rental Car Agency Insurance Activities - Establishes a presumption for a three-year period that no State law imposes any licensing, appointment, or education requirements on any person who solicits the purchase or sells insurance in connection with a motor vehicle lease or rental. Declares the preeminence of pertinent State insurance law. Title IV: Unitary Savings and Loan Holding Companies - Amends the Home Owners' Loan Act to prohibit new affiliations between savings and loan holding companies and certain commercial firms, except in specified circumstances. Title V: Privacy - Subtitle A: Disclosure of Nonpublic Personal Information - Declares it is the policy of Congress that each financial institution has an affirmative, continuing obligation to respect the privacy and to protect the confidentiality of customer nonpublic personal information. (Sec. 501) Instructs specified regulatory agencies to establish standards for financial institution safeguards that: (1) ensure security and confidentiality of customer records and information; and (2) protect against hazards or unauthorized access to such information. (Sec. 502) Conditions financial institution disclosure of customer nonpublic personal information to a nonaffiliated third party upon compliance with consumer notification requirements that include: (1) clear, conspicuous disclosures that such information may be disseminated to third parties; and (2) consumer opportunity to prevent such dissemination. Prohibits a financial institution from disclosing a consumer's access number or code to a nonaffiliated third party for use in telemarketing, direct mail marketing, or other marketing through electronic mail to the consumer. (Sec. 504) Requires selected Federal regulatory agencies to jointly prescribe implementing regulations. Confers enforcement authority upon designated Federal functional regulators, State insurance authorities, and the FTC. (Sec. 506) Revamps the Fair Credit Reporting Act enforcement guidelines to require certain Federal banking agencies to jointly prescribe regulations governing dissemination by holding companies and their affiliates of customer nonpublic personal information. (Sec. 508) Directs the Secretary of the Treasury, in conjunction with Federal functional regulators and the FTC, to study and report to Congress on information sharing practices among financial institutions and their affiliates. Subtitle B: Fraudulent Access to Financial Information - Declares it is a violation of this Act to obtain, disclose, or provide documents under false pretenses pertaining to customer information of a financial institution. Exempts from such proscription: (1) law enforcement agencies; (2) financial institutions and insurance institutions which are engaged in specified activities; (3) customer information of financial institutions available as a public record under Federal securities laws; and (4) State-licensed private investigators acting under court authorization to collect child support from a person adjudged delinquent. (Sec. 522) Grants the FTC enforcement powers under this Act. Subjects violations of this Act to Federal civil and criminal penalties. (Sec. 525) Requires each Federal banking and securities regulatory agency to update guidelines applicable to the financial institutions under their respective jurisdictions to ensure such institutions have controls in place to deter and detect the activities proscribed by this Act. (Sec. 526) Requires the Comptroller General to report to Congress on: (1) the efficacy and adequacy of the remedies provided in this Act; and (2) recommendations for additional action to address threats to financial information privacy. Directs the FTC and the Attorney General to report annually to Congress on enforcement actions taken pursuant to this Act. Title VI: Federal Home Loan Bank System Modernization - Federal Home Loan Bank System Modernization Act of 1999 - Amends the Federal Home Loan Bank Act (FHLBA) to expand Federal Home Loan Bank (FHLB) membership parameters to make a Federal savings association's membership in the FHLB system voluntary instead of mandatory. (Sec. 604) Expands parameters governing long-term advances to: (1) include advances to any community financial institution for small farms, and small agri-businesses; (2) state that FHLB cash and deposits are eligible collateral for securing a bank's interest in a loan or advance; and (3) repeal the 30 percent capital cap on the aggregate amount of outstanding advances that are secured by real estate related collateral. States that, in the case of any community financial institution, the collateral that is eligible for an FHLB loan includes secured loans for small business, agriculture, or securities representing a whole interest in secured loans. Authorizes an FHLB to renew certain advances on its own determination without concurrence by the Federal Housing Finance Board (FHFB). Requires an FHLB member with an advance secured by insufficient eligible collateral to reduce its level of outstanding advances according to a schedule determined by the FHLB (currently, by the FHFB ). Authorizes such Board to: (1) review the collateral standards applicable to each FHLB for designated classes of collateral; and (2) require an increase in such standards for safety and soundness purposes. (Sec. 605) Revises eligibility criteria to permit certain community financial institutions to gain FHLB membership regardless of the percentage of total assets represented by residential mortgage loans. (Sec. 606) Amends the FHLBA to restructure the management of the FHLB boards of directors pertaining to: (1) residency requirements; (2) staggered terms of office; (3) election of chairpersons; and (4) compensation limitations and expenses. Repeals the mandates for: (1) a procedure for informal review of certain supervisory decisions; and (2) the Housing Opportunity Hotline program. Repeals: (1) the prohibition against an FHLB's acquisition of a bank building by purchase or over ten-year lease; (2) the requirement for FHFB approval of personnel decisions as well as the exercise of corporate powers by any FHLB; and (3) the authorization for an FHLB president to be a member of the FHLB board. Empowers the FHFB to: (1) charge an FHLB or any executive officer or director with violation of law or regulation in connection with the granting of any application or other request by the bank, or any written agreement between the bank and the FHFB; (2) take affirmative action to correct conditions resulting from violations or practices; (3) limit FHLB activities; and (4) address any insufficiencies in capital levels resulting from application of statutory requirements of FHLB membership. Repeals FHFB jurisdiction to approve the granting by an FHLB of a member's application to secure an advance. Revises guidelines governing reserves and dividends to permit dividend payments out of previously retained earnings or current net earnings (currently, only out of net earnings). Repeals the requirement for: (1) FHFB approval for such dividend payments; and (2) investment of FHLB reserves exclusively in U.S. obligations or certain other Federal Government-related securities. (Sec. 607) States that FHLB payments to the Resolution Funding Corporation to cover interest payments on obligations shall be a specified percentage of net earnings (currently an aggregate sum certain). (Sec. 608) Revamps FHLB capital structure parameters to direct: (1) the Finance Board to issue uniform capital standards regulations governing FHLB leverage limitation and risk-based capital requirements; and (2) each FHLB board of directors to submit for FHFB approval a capital structure plan determined to be best suited for the bank's condition and operation as well as for the interests of its shareholders. Prescribes plan contents. Title VII: Other Provisions - Subtitle A: ATM Fee Reform - ATM Fee Reform Act of 1999 - Amends the Electronic Fund Transfer Act to mandate fee disclosures at the time of service by any automated teller machine (ATM) operator which imposes a fee for providing host transfer services to a consumer. (Sec. 703) Mandates disclosure at the time the consumer contracts for electronic fund transfer services that fees may be imposed for initiating electronic fund transfers from an electronic terminal which is not operated by the issuer of the consumer's access card. (Sec. 704) Requires the Comptroller General to study and report to Congress the feasibility of requiring specified fee disclosures to the consumer before such consumer is irrevocably committed to completing the transaction. Subtitle B: Community Reinvestment - Amends the FDIA to require full public disclosure and an annual status report of any agreement entered into pursuant to or in connection with the CRA, between an insured depository institution, its affiliate, and any non-governmental party, that involves depository institution resources (including full text disclosure to the appropriate Federal banking regulatory agency). Imposes sanctions for violation of such mandate by a non-depository institution. (Sec. 712) Amends the CRA to set forth a graduated schedule of decreasing CRA examinations of certain small-sized banks commensurate with their record of meeting CRA "community credit needs". Emphasizes retention of the CRA examination schedule for regulated financial institutions in connection with deposit facility applications. (Sec. 713) Directs the Board of Governors of the Federal Reserve System to conduct a comprehensive study of the CRA and report to Congress and the public on CRA default, delinquency, and profitability data. (Sec. 715) Instructs the Secretary of the Treasury to study and report to Congress on the extent to which adequate services are being provided as intended by the CRA. Subtitle C: Other Regulatory Improvements - Instructs the Comptroller General to study and report to Congress on selected possible revisions to rules governing S corporations, and the impact such revisions might have on community banks. (Sec. 722) Mandates a "plain language" requirement for Federal banking agency rules. (Sec. 723) Amends Federal law to declare that any depository institution whose charter is converted from that of a Federal savings association to a national or State bank after enactment of this Act may retain "Federal" in its name so long as it remains an insured depository institution. Program for Investment in Microentrepreneurs Act of 1999 (PRIME Act) - Amends the Reigle Community Development and Regulatory Improvement Act of 1994 to add a new subtitle C, Microenterprise Technical Assistance and Capacity Building Program. Directs the Administrator of the Small Business Administration to establish a microenterprise technical assistance and capacity building program to provide grants to qualified nonprofit organizations for: (1) training and technical assistance to disadvantaged entrepreneurs; (2) training and capacity building services to help microenterprise development organizations and programs develop training and services; and (3) aid in researching and developing the best practices for disadvantaged entrepreneurs. Sets forth an allocation formula for such assistance and for grants benefitting very low-income persons, including those residing on Indian reservations. Authorizes a qualified organization to provide subgrants to small and emerging microenterprise entities. Mandates matching funds from non-Federal sources. Authorizes appropriations. (Sec. 726) Amends the FRA to direct the Board to order an annual independent audit of the financial statements of each Federal reserve bank and of the Board. (Sec. 727) Authorizes such Board to release confidential supervisory information concerning a State member bank to any Federal or State regulatory counterpart. Amends the Right to Financial Privacy Act of 1978 to authorize the Federal Financial Institutions Examination Council, the Securities and Exchange Commission, and the Commodities Futures Trading Commission to share information regarding a financial institution. (Sec. 728) Instructs the Comptroller General to study and report to Congress on conflict of interest issues confronting the Board of Governors of the Federal Reserve System in its role as: (1) primary regulator of the banking industry; (2) vendor of services to the banking and financial services industry; and (3) both regulator of the payment system and its participation in such system as a competitor with private entities providing payment services. (Sec. 729) Directs the Federal banking agencies to: (1) study and report to Congress on banking regulations governing the delivery of financial services; and (2) submit recommendations on adapting existing requirements to online banking and lending. (Sec. 730) Amends the FDIA to cite circumstances under which a Federal banking agency (including an appointed conservator or receiver) is shielded from liability (source of strength doctrine) regarding assets transferred to a depository institution by a controlling shareholder or depository institution holding company (including its affiliates or subsidiaries). (Sec. 731) Amends the FDIA to prescribe a statutory formula for maximum interest rates or other charges levied by interstate branches of an insured depository institution. (Sec. 732) Amends the IBA to permit a foreign bank to upgrade its interstate branches or agencies to Federal or State status. (Sec. 733) Expresses the sense of Congress that individuals offering financial advice and products should offer such services and products in a nondiscriminatory, nongender-specific manner. (Sec. 734) Amends the Emergency Steel Loan Guarantee Act of 1999 and the Emergency Oil and Gas Guarantee Loan Program Act to include as alternative members of both the Emergency Steel Loan Guarantee Board and the Emergency Oil and Gas Loan Guarantee Board: (1) a member of the Board of Governors of the Federal Reserve System; and (2) a commissioner of the Securities and Exchange Commission (each designated by the pertinent Chairman). (Sec. 735) Amends the Federal Reserve Act to repeal: (1) the Board's power to restrict the percentage of individual bank capital and surplus represented by loans secured by stock or bond collateral; and (2) the Board's duty to establish such restrictions with a view to preventing the undue use of bank loans for the speculative carrying of securities. (Sec. 736) Amends the FDIA and the Deposit Insurance Funds Act of 1996 to eliminate the Special Reserve of the SAIF and of the Deposit Insurance Fund, respectively (established to provide emergency funds if the reserve ratio of either fund is below 50 percent of its designated ratio for one year). (Sec. 737) Amends the Federal Power Act to cite circumstances under which its proscriptions against interlocking directorates (enacted to address abuses of interlocking directorates) are inapplicable to a person that holds or proposes to hold the positions of an officer or director of: (1) a public utility; and (2) a bank, trust company, banking association, or firm authorized to underwrite or participate in the marketing of securities of a public utility. (Sec. 738) Amends the FRA proscription against bank securities transactions with affiliates to permit securities acquisitions approved as sound by a majority of the bank directors, irrespective of the fact that a bank affiliate is a principal underwriter of such securities. (Sec. 739) Permits Federal savings associations, with the approval of the Comptroller of the Currency or the appropriate State bank supervisor, to convert into national banks if the resulting bank meets all applicable financial, management, and capital requirements. (Sec. 740) Amends Federal criminal law to cite circumstances under which a court may direct disclosure of grand jury information concerning a banking law violation to certain personnel of a Federal or State financial institution.

TABLE OF CONTENTS: Title I: Facilitating Affiliation Among Securities Firms, Insurance Companies, and Depository Institutions Subtitle A: Affiliations Subtitle B: Streamlining Supervision of Financial Holding Companies Subtitle C: Subsidiaries of National Banks Subtitle D: Wholesale Financial Holding Companies; Wholesale Financial Institutions Subtitle E: Preservation of FTC Authority Subtitle F: National Treatment Subtitle G: Federal Home Loan Bank System Modernization Subtitle H: ATM Fee Reform Subtitle I: Direct Activities of Banks Subtitle J: Deposit Insurance Funds Subtitle K: Miscellaneous Provisions Subtitle L: Effective Date of Title Title II: Functional Regulation Subtitle A: Brokers and Dealers Subtitle B: Bank Investment Company Activities Subtitle C: Securities and Exchange Commission Supervision of Investment Bank Holding Companies Subtitle D: Disclosure of Customer Costs of Acquiring Financial Products Subtitle E: Banks and Holding Companies Title III: Insurance Subtitle A: State Regulation of Insurance Subtitle B: Redomestication of Mutual Insurers Subtitle C: National Association of Registered Agents and Brokers Subtitle D: Rental Car Agency Insurance Activities Subtitle E: Confidentiality Title IV: Unitary Savings and Loan Holding Companies Title V: Privacy of Consumer Information Subtitle A: Disclosure of Nonpublic Personal Information Subtitle B: Fraudulent Access to Financial Information Financial Services Act of 1999 - Title I: Facilitating Affiliation Among Securities Firms, Insurance Companies, and Depository Institutions - Subtitle A: Affiliations - Amends the Banking Act of 1933 (Glass-Steagall Act) to repeal the prohibitions: (1) against affiliation of any Federal Reserve member bank with an entity engaged principally in securities activities (securities affiliate); and (2) against simultaneous service by any officer, director, or employee of a securities firm as an officer, director, or employee of any member bank (interlocking directorates). (Sec. 102) Amends the Bank Holding Company Act of 1956 (BHCA) to exempt from its prohibition against interests in nonbanking organizations the shares of any company whose activities had been determined by the Board of Governors of the Federal Reserve System (the Board), as of the day before the date of enactment of this Act, to be so closely related to banking as to be a proper incident thereto. (Sec. 103) Creates a statutory mechanism for the establishment of financial holding companies (FHCs) whose subsidiary depository institutions are well-capitalized and well-managed and meet other specified criteria. Instructs the Board to establish and apply comparable capital standards to a foreign bank with a subsidiary bank or commercial lending company in the United States. Permits an FHC to engage in any activity and acquire the shares of any company whose activities have been determined by the Board to be either financial in nature, or incidental to financial activities. Mandates consultation and coordination, between the Board and the Secretary of the Treasury (the Secretary) regarding determination of whether an activity is financial in nature, or incidental to financial activities. Includes among such activities any investments, lending, insurance, securities transactions, certain financial operations abroad, and ownership or control of banking interests. Mandates notification to the Board of certain large business combinations with FHCs. Requires an FHC to make assurances that risk management procedures adequately protect insured depository institution subsidiaries, including reasonable measures to preserve separate corporate identity and limited liability. Cites circumstances under which an FHC (and its foreign counterpart) may engage in nonfinancial activities. Permits FHCs which were not BHCs or foreign banks before becoming FHCs to retain limited non-financial activities and affiliations. Sets forth cross-marketing restrictions for FHC-controlled depository institutions. Requires the Board, when considering an FHC acquisition, merger, or consolidation, to consider the extent to which its subsequent failure or default after consummation could have serious adverse economic effects, or trigger financial instability ("too big to fail" factor). (Sec. 104) Preempts State anti-affiliation laws restricting transactions among insured depository institutions, wholesale financial institutions, insurance concerns, and national banks. Cites exceptions to such preemption, especially for State regulation of the business of insurance, including the retention of State capitalization requirements for an insurance entity acquired by another entity. Declares that this Act shall not affect State antitrust and general corporate law. Retains State oversight authority over specified financial activities other than insurance. Prohibits State regulation of the insurance activities of an insured depository institution or wholesale financial institution in any way that discriminates adversely between insured depository institutions or wholesale financial institutions and other entities engaged in insurance activities. (Sec. 105) Requires that mutual bank holding companies be regulated on the same terms as bank holding companies. (Sec. 105A) Amends the following banking acts to mandate public meetings concerning proposed large bank mergers and acquisitions: (1) BHCA of 1956; (2) the Federal Deposit Insurance Act (FDIA); (3) National Bank Consolidation and Merger Act; and (4) the Home Owners' Loan Act. (Sec. 106) Amends the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 (RNIBBEA) to apply its prohibition against deposit production offices to interstate branches acquired or established under this Act, including all branches of a bank owned by an out-of-State BHC. (Sec. 107) Amends the FDIA to apply to any branch of a bank controlled by an out-of-State BHC certain requirements for branch closures by an interstate bank. (Sec. 108) Authorizes well-capitalized and well-managed limited purpose banks to engage in any banking activity. (Maintains the restriction that such banks may accept demand deposits or make commercial loans, but not both.) Prohibits such banks from permitting any overdraft (including intraday overdrafts), or incurring overdrafts in their accounts at a Federal Reserve Bank, on behalf of an affiliate, with certain exceptions. Permits such banks to: (1) issue corporate credit cards; (2) cross market affiliates; and (3) avoid divestiture by correcting violations within six months of receiving notice from the Board. (Sec. 109) Directs the Comptroller General to study and report to Congress on the projected impact that enactment of this Act will have upon: (1) financial institutions with total assets of $100 million or less; and (2) upon insurance agents and consumers. (Sec. 110) Instructs the Secretary of the Treasury to study and report to Congress on the extent to which: (1) adequate services are being provided as intended by the Community Reinvestment Act of 1977 (CRA), as a result of enactment of this Act (including services in low- and moderate-income neighborhoods and for persons of modest means); and (2) credit is being provided to small businesses and farms as a result of this Act. Subtitle B: Streamlining Supervision of Financial Holding Companies - Amends the BHCA of 1956 to prohibit the Board from imposing any capital or capital adequacy criteria upon a non-depository institution FHC subsidiary that is: (1) in compliance with State or Federal capitalization rules; (2) registered under the Investment Advisers Act of 1940; and (3) duly licensed under State law. Prohibits the Board, in developing holding company capital adequacy requirements, from taking into consideration any affiliated investment company which is not a bank holding company (BHC) nor controlled by one holding 25 percent or more shares of the investment company worth more than $1 million. (Sec. 111) Authorizes the Board to transfer its BHC oversight authority to the appropriate Federal banking agency if a BHC is not significantly engaged in non-banking activities. Mandates Board deference to the SEC and relevant State securities and insurance authorities with respect to interpretations and enforcement of activities within their respective jurisdictions (functional regulation). (Sec. 112) Provides that a declaration filed by a company seeking to be an FHC shall satisfy BHC registration requirements but not any requirement to file an application to acquire a bank. Revises BHCA divestiture procedures to permit a BHC to elect divestiture of either a nonbanking subsidiary or an insured depository institution. (Sec. 113) Amends the BHCA and the FDIA, respectively, to declare ineffective and non-enforceable any Board or Federal banking agency action that requires an insurance company BHC, a registered securities broker-dealer BHC, or a bank subsidiary to provide assets to a subsidiary insured depository institution if the State insurance authority, or the SEC, determines in writing that such actions would have a material adverse effect on the BHC's financial condition. Permits the Board to order divestiture of the subsidiary in lieu of other action. (Sec. 114) Sets forth prudential safeguards criteria under which the Comptroller of the Currency, the Board, and the Federal Deposit Insurance Corporation (FDIC), are authorized to restrict the relationships or transactions between entities and subsidiaries under their respective jurisdictions. (Sec. 115) Grants the SEC exclusive authority to examine and inspect any non-BHC registered investment company. Prohibits a Federal banking agency from inspecting or examining such non-BHC company. (Sec. 116) Prohibits the Board from taking any action under the BHCA or the FDIA against a BHC-regulated subsidiary unless it is necessary to prevent or redress an unsafe or unsound practice or breach of fiduciary duty by the subsidiary that poses a material risk to the financial safety, soundness, or stability of an affiliated depository institution or to the domestic or international payment systems. (Sec. 117) Declares that BHCA restrictions placed upon Board authority over bank holding companies and their nonbank subsidiaries also limit FDIC authority with respect to such companies and their nonbank subsidiaries. (Sec. 118) Amends the FDIA to prohibit the use of the Bank Insurance Fund (BIF) and the Savings Association Insurance Fund (SAIF) to benefit any affiliates or subsidiaries of certain insured depository institutions in receivership, in default, or in danger of default, or of any insured depository institution in such circumstances that is acquiring another insured depository institutions. (Sec. 119) Amends the BHCA of 1956 to repeal strictures governing activities of bank holding company subsidiaries in connection with insurance and savings bank life insurance. Subtitle C: Subsidiaries of National Banks - Amends Federal law governing national banks to prohibit a national bank subsidiary from: (1) engaging in any activity or owning shares of a company engaged in any activity that is impermissible for a national bank; or (2) engaging in activity that is conducted under terms other than those that govern national bank activities (unless a national bank is expressly authorized to do so by Federal statute). (Sec. 121) Sets forth parameters within which a national bank may control or hold an interest in a financial subsidiary that is controlled by an insured depository institution. Prohibits a national bank subsidiary from engaging: (1) as principal in specified insurance activities (except credit-related insurance), or in providing or issuing annuities; (2) in real estate investment or development activities; or (3) in insurance company investment activities that are permissible by statute for an FHC. Prohibits certain large-sized national banks (assets of $10 billion or more) from controlling a subsidiary engaged in financial activities unless such national banks are themselves subsidiaries of a bank holding company. Provides an interim period for the exclusion of certain newly affiliated depository institutions from CRA community needs requirements if the appropriate Federal banking agency has accepted an affirmative plan from the institution to achieve a "satisfactory rating" at its next examination. Prescribes procedural guidelines for mandatory consultation between the Secretary of the Treasury and the Board regarding any determination whether an activity is financial in nature or incidental to a financial activity. Enumerates identifying factors. Cites circumstances under which a national bank financial subsidiary may engage in activities which the Secretary has not determined to be either financial in nature or incidental to financial activities. Grants the Comptroller of the Currency enforcement powers, including subsidiary divestiture injunctions. (Sec. 122) Amends the FDIA and the FRA to prescribe safety and soundness firewalls applicable to banks and their financial subsidiaries, and to transactions between financial subsidiaries and other affiliates, including: (1) a proscription against consolidation of the assets and liabilities of financial subsidiaries with those of the bank; (2) mandatory procedures for bank identification and management of financial and operational risks posed by a financial subsidiary; (3) maintenance of separate corporate identity and separate legal status; and (4) Federal oversight examinations. (Sec. 123) Amends Federal criminal law to proscribe misrepresentations regarding depository institution liability for obligations of affiliates. (Sec. 124) Amends the FRA to repeal: (1) the Board's power to restrict the percentage of individual bank capital and surplus represented by loans secured by stock or bond collateral; and (2) the Board's duty to establish such restrictions with a view to preventing the undue use of bank loans for the speculative carrying of securities. Subtitle D: Wholesale Financial Holding Companies; Wholesale Financial Institutions - Chapter 1: Wholesale Financial Holding Companies - Amends the BHCA to set forth a statutory mechanism for regulation of wholesale financial holding companies that do not control a bank other than a wholesale financial institution (WFI) or specified, limited-purpose institutions. (Sec. 131) Specifies the limits of Board examinations of such companies. Prohibits the Board, in developing capital adequacy requirements, from taking into consideration any affiliated investment company which is not a bank holding company nor controlled by one holding 25 percent or more shares of the investment company worth more than $1 million. Specifies the kinds of nonfinancial activities in which Board-supervised companies may engage. Sets forth guidelines for the treatment of certain nonfinancial investments and affiliations of foreign banks operating within the United States as Board-supervised wholesale financial holding companies. Encompasses within CRA jurisdiction the domestic branches of a foreign bank that is either: (1) a WFI affiliate; or (2) accorded WFI treatment. Chapter 2: Wholesale Financial Institutions - Amends the Revised Statutes to permit a national bank to operate as a noninsured national WFI subject to FRA and the regulatory authority of the Comptroller of the Currency. Amends FRA to prescribe procedural guidelines for State bank membership as a noninsured WFI in the Federal Reserve System, subject to FDIA enforcement authority and prompt corrective action requirements. Subjects such institutions to the Community Reinvestment Act of 1977. (Sec. 136) Prohibits a WFI from receiving initial deposits of $100,000 or less except on an incidental and occasional basis. Limits incidental deposits of $100,000 or less to a maximum five percent of a WFI's total deposits. Sets forth capital and managerial requirements for certain WFIs controlled by companies under the jurisdiction of either the SEC or the BHCA. Empowers the Comptroller of the Currency (in the case of a national WFI) and the Board to direct a WFI conservator or receiver to file a petition under the Federal bankruptcy code. Amends FDIA to prescribe procedures whereby an insured State-chartered bank or a national bank may voluntarily terminate its status as an insured depository institution. Requires any such terminated bank to become a WFI in order to accept any deposits. Subjects a State bank that is a WFI to the Community Reinvestment Act of 1977. Amends Federal bankruptcy law to prescribe WFI liquidation guidelines. Subtitle E: Preservation of FTC Authority - Amends the BHCA to require the Board to notify the Federal Trade Commission (FTC) of its approval of a proposed acquisition, merger, or consolidation which involves acquisition of nonbanking interests. (Sec. 142) Directs certain Federal banking agencies to make data available to the Attorney General and the FTC that they deem necessary for antitrust review under specified statutes. (Sec. 143) Excludes from FTC jurisdiction any nondepository institution subsidiary or affiliate of a bank or savings association. Amends the Clayton Act to apply its premerger notification and waiting period requirements to any portion of a merger or acquisition transaction that does require notice under BHCA but does not require approval. (Sec. 144) Instructs the Comptroller General to report annually to Congress for five years on market concentration in the financial services industry and its impact on consumers. Subtitle F: National Treatment - Amends the International Banking Act of 1978 (IBA) to terminate the grandfathered authority of a foreign bank or company under the IBA to engage in any financial activity, if it files a BHCA declaration to function as a qualified BHC (QBHC). (Consequently, foreign banks with grandfathered affiliates would be permitted to keep them on the same terms and conditions that govern domestic banking organizations.) (Sec. 152) Amends the FDIA to allow insured foreign banks and foreign WFIs to terminate deposit insurance voluntarily in the same manner and to the same extent as insured State or national banks. (Sec. 153) Amends the International Banking Act of 1978 to authorize the Board to examine any affiliate of a foreign bank conducting business in any State in which the Board deems it necessary to determine and enforce compliance with Federal banking law. (Sec. 154) Requires the Secretary of Commerce, whenever a foreign person announces its intention to acquire a bank, a securities entity, or an insurance company ranked in the top 50 domestic firms in that line of business, to submit a national treatment report to Congress on whether a U.S. person would be able to acquire an equivalent sized firm in the country in which such foreign person is located. Requires the Secretary, at least six months before commencement of the financial services negotiations of the World Trade Organization, to report to Congress: (1) an assessment of the 30 largest financial services markets with regard to whether reciprocal access is available in them to U.S. financial services providers; and (2) with respect to any such markets in which reciprocal access is not available to U.S. financial services providers, recommendations as to what legislative, regulatory, or enforcement changes would be required to ensure such full reciprocity. Subtitle G: Federal Home Loan Bank System Modernization - Federal Home Loan Bank System Modernization Act of 1999 - Amends the Federal Home Loan Bank Act (FHLBA) to expand Federal Home Loan Bank (FHLB) membership parameters to make a Federal savings association's membership in the FHLB system voluntary instead of mandatory. (Sec. 164) Modifies guidelines governing long-term advances to: (1) allow advances to any community financial institution for small businesses, agricultural, rural development, or low-income community development lending; (2) make the cash (as well as the deposits) of an FHLB eligible collateral for securing a bank's interest in a loan or advance; and (3) repeal the 30 percent of capital cap on the aggregate amount of outstanding advances secured by real estate related collateral. Includes within the categories of collateral eligible for bank loans any secured loans for small business, agriculture, rural development, or low-income community development, or securities representing a whole interest in such secured loans, in the case of any community financial institution. Authorizes an FHLB to renew certain advances on its own determination without concurrence by the Federal Housing Finance Board (FHFB). Requires an FHLB member with an advance secured by insufficient eligible collateral to reduce its level of outstanding advances according to a schedule determined by the FHLB (currently, by the FHFB). Authorizes such Board to: (1) review the collateral standards applicable to each Federal home loan bank for designated classes of collateral; and (2) require an increase in such standards for safety and soundness purposes. (Sec. 165) Revises eligibility criteria to permit certain community financial institutions to gain FHLB membership regardless of the percentage of total assets represented by residential mortgage loans. (Sec. 166) Amends the FHLBA to increase from two years to four years the term of an elective director of a Federal home loan bank. Repeals the mandates for: (1) a procedure for informal review of certain supervisory decisions; and (2) the Housing Opportunity Hotline program. Repeals: (1) the prohibition against an FHLB's acquisition of a bank building by purchase or over ten-year lease; (2) the requirement for FHFB approval of personnel decisions as well as the exercise of corporate powers by any FHLB; and (2) authorization for an FHLB president to be a member of the FHLB board. Grants the FHFB power to: (1) issue charges upon an FHLB or any executive officer or director for violation of law or regulation in connection with the granting of any application or other request by the bank, or any written agreement between the bank and the FHFB, and take affirmative action to correct conditions resulting from violations or practices, or to limit FHLB activities; (2) address insufficiencies in capital levels resulting from automatic membership of a Federal savings association in the local FHLB; and (3) sue and be sued. Repeals FHFB jurisdiction to approve the granting by an FHLB of a member's application to secure an advance. Expands the mandate of FHLB Affordable Housing Programs to include providing subsidies (in addition to subsidized interest rates) on advances for member lending for low- and moderate-income housing. Authorizes each FHLB board of directors to approve member requests for Affordable Housing Program subsidies. Revises guidelines governing reserves and dividends to permit dividend payments out of previously retained earnings or current net earnings (currently, only out of net earnings). Repeals the requirement for: (1) FHFB approval for such dividend payments; and (2) investment of FHLB reserves exclusively in U.S. obligations or certain other Federal Government-related securities. (Sec. 167) States that FHLB payments to the Resolution Funding Corporation to cover interest payments on obligations shall be a specified percentage of net earnings (currently an aggregate sum certain). (Sec. 168) Revamps FHLB capital structure parameters to direct: (1) the Finance Board to issue uniform capital standards regulations governing FHLB leverage limitation and risk-based capital requirements; and (2) each FHLB board of directors to submit for approval of the Federal Housing Finance Board a capital structure plan determined to be best suited for the bank's condition and operation as well as for the interests of its shareholders. Prescribes plan contents. Subtitle H: ATM Fee Reform - ATM Fee Reform Act of 1999 - Amends the Electronic Fund Transfer Act to mandate fee disclosures at the time of service by any automated teller machine operator which imposes a fee for providing host transfer services to a consumer. (Sec. 173) Mandates disclosure at the time the consumer contracts for electronic fund transfer services that fees may be imposed for initiating electronic fund transfers from an electronic terminal which is not operated by the issuer of the consumer's access card. Requires the Comptroller General to study and report to Congress the feasibility of requiring specified fee disclosures to the consumer before such consumer is irrevocably committed to completing the transaction. Subtitle I: Direct Activities of Banks - Amends Federal banking law to provide that limitations placed on securities transactions by a national banking association for its own account do not apply to State, local, or municipal bond transactions by a well-capitalized national banking association. Subtitle J: Deposit Insurance Funds - Directs the FDIC Board of Directors to study and report to Congress on specified issues regarding the Bank Insurance Fund (BIF) and the Savings Association Insurance Fund (SAIF), including their safety and soundness, and the adequacy of their reserve requirements in light of mergers and consolidations within the industry. (Sec. 187) Amends the FDIA and the Deposit Insurance Funds Act of 1996 to eliminate the Special Reserve of the SAIF, and the Deposit Insurance Fund (DIF), respectively (established to provide emergency funds if the reserve ratio of either fund remains below 50 percent of its designated ratio for one year). Subtitle K: Miscellaneous Provisions - Bars publication in final form of specified "know your customer" regulations proposed by the: (1) Comptroller of the Currency; (2) Director of the Office of Thrift Supervision; (3) the Board of Governors of the Federal Reserve System; and (4) the FDIC. Declares that any such regulation which becomes effective before the date of enactment of this Act ceases to be effective as of such date. (Sec. 192) Directs the Secretary of the Treasury to conduct a feasibility study and report to Congress on selected aspects of Federal electronic fund transfers. (Sec. 193) Instructs the Comptroller General to study and report to Congress on conflict of interest issues confronting the Board of Governors of the Federal Reserve System in its role: (1) as primary regulator of the banking industry and its role as vendor of services to the banking and financial services industry; and (2) as regulator of the payment system, generally, and its participation in the payment system as a competitor with private entities who are providing payment services. (Sec. 194) Instructs the Board to study and report to Congress on the total annual costs and benefits of all Federal financial regulations and regulatory requirements applicable to banks. (Sec. 195) Directs the Federal banking agencies to study and report to Congress on banking regulations governing the delivery of financial services, and submit recommendations on adapting existing requirements to online banking and lending. (Sec. 196) Amends the Federal Reserve Act to subject uninsured State member banks to FDIA enforcement authority in the same manner and extent as insured State member banks. (Sec. 197) Amends the FDIA to cite circumstances under which a Federal banking agency (including any conservator or receiver appointed by it) is shielded from any liability (source of strength doctrine) with respect to assets transferred to a depository institution by a controlling shareholder or depository institution holding company (including its affiliates or subsidiaries). (Sec. 198) Amends the FDIA to prescribe a statutory formula for maximum interest rates or other charges that may be levied by interstate branches of an insured depository institution. (Sec. 198A) Amends the IBA to permit a foreign bank to upgrade its interstate branches or agencies to Federal or State status. (Sec. 198B) Expresses the sense of Congress that financial planners and advisers should: (1) eliminate training material examples which portray women as incapable and foolish; and (2) develop presentations that eliminate outmoded stereotypical examples which lead clients to take actions financially detrimental to their wives and daughters. Subtitle L: Effective Date of Title - Sets forth the effective date of Title I of this Act. Title II: Functional Regulation - Subtitle A: Brokers and Dealers - Amends the Securities Exchange Act of 1934 (Exchange Act) to include certain bank activities within the definition of "broker" and "dealer" (thus subjecting them to registration requirements and regulation under the Exchange Act). (Sec. 203) Requires a registered securities association to create a limited qualification category, without a testing requirement, for certain bank employees effecting sales as part of a non-public primary securities offering (private placement sales). (Sec. 205) Prohibits the SEC from requiring a bank to register as a broker or dealer because it engages in new hybrid product transactions unless such requirement has been promulgated pursuant to rulemaking procedures in accordance with this Act. Prohibits the SEC from imposing a requirement regarding a new hybrid product unless it determines that such product is a security necessitating such requirement in the public interest and for investor protection. (Sec. 206) Amends the Securities Exchange Act of 1934 to define: (1) excepted financial product; (2) derivative instrument to exclude specified excepted financial products; (2) qualified investor; and (3) government security to include a qualified Canadian government obligation. Subtitle B: Bank Investment Company Activities - Amends the Investment Company Act of 1940 to authorize the SEC to prescribe conditions under which a bank or its affiliate serving as promoter, organizer, or principal underwriter for a registered management company or a registered unit investment trust may also serve as custodian of such company or trust. Permits the SEC to bring a civil action against a custodian for a registered investment company for breach of fiduciary duty involving personal misconduct. (Sec. 212) Declares it is unlawful for an affiliate, promoter, or principal underwriter for a registered investment company to lend to it or its subsidiaries in contravention of SEC prescriptions. (Sec. 213) Modifies the definition of "interested person" to identify transactions, services, and loans taking place during the six months preceding determination of an interested person which would make a person an affiliated person of a broker or dealer. Prohibits a registered investment company from having a majority of its board of directors consisting of personnel or senior officers of the subsidiaries of any one bank, or of any single BHC, its affiliates, and subsidiaries. (Sec. 214) Modifies guidelines pertaining to unlawful misrepresentation of guarantees and the deceptive use of names. (Sec. 215) Modifies the definition of "broker" to exclude any person who would be deemed a broker solely by reason of the fact that such person is an underwriter for one or more investment companies. (Sec. 216) Modifies the definition of "dealer" to exclude an insurance or an investment company. (Sec. 217) Amends the Investment Advisers Act of 1940 to modify the definition of investment adviser to remove the exclusion for banks that advise investment companies. Revises the definitions of broker and dealer. (Sec. 220) Mandates interagency sharing between the appropriate Federal banking agency and the SEC of examination results and other information pertaining to the investment advisory activities of a registered BHC and its separately identifiable departments or divisions. (Sec. 221) Amends the Securities Act of 1933 and the Securities Exchange Act of 1934 to revise the exclusion from their purview of certain bank common trust funds to specify the exclusion of any interest or participation in any common trust fund or similar fund that is excluded from the definition of "investment company" under the Investment Company Act of 1940. Amends the Investment Company Act of 1940 to revise such exclusion guidelines for certain bank common trust funds. (Sec. 222) Amends the Investment Company Act of 1940 to prescribe circumstances under which an investment adviser holding shares of an investment company in a fiduciary capacity must transfer the power to vote such shares to the beneficial owners or to another non-affiliated fiduciary. (Sec. 226) Amends the Investment Company Act of 1940, with respect to the exclusion of church plans from the meaning of investment company, to exempt from certain requirements regarding the company's shares any investment adviser to a registered investment company that would be an exempted church plan but for the failure of some of the company's assets to satisfy specified criteria. Subtitle C: Securities and Exchange Commission Supervision of Investment Bank Holding Companies - Amends the Securities Exchange Act of 1934 to permit certain investment bank holding companies that do not have a bank or savings association affiliate to elect SEC supervision. (Sec. 231) Provides for voluntary withdrawal from SEC supervision by specified investment bank holding companies. Sets forth the parameters of SEC supervision of investment bank holding companies, including authority to set capital adequacy standards. Instructs the SEC, in developing its rules, to consider use of debt and other liabilities (double leverage) by the supervised investment BHC in order to fund capital investments in affiliates. Prohibits the SEC from imposing capital adequacy requirements on regulated nonbanking entities (other than a broker or a dealer) that are in compliance with the capital requirements of another Federal regulatory body or State insurance authority. Mandates SEC deference to appropriate regulatory banking agencies and State insurance regulators with respect to the banking and insurance laws under their respective purviews. Shields the SEC from compulsory disclosure (except to Congress) of certain information furnished by a domestic or foreign regulatory agency relating to the financial or operational condition of: (1) any associated person of a broker or dealer; or (2) any investment bank holding company or its affiliate. Subtitle D: Disclosure of Customer Costs of Acquiring Financial Products - Requires each Federal financial regulatory agency to revamp its rules in order to provide improved and consistent disclosures concerning costs incurred by customers in the acquisition of financial products. Subtitle E: Banks and Bank Holding Companies - Requires the SEC to consult and coordinate comments with the appropriate Federal banking agency before taking any action or rendering any opinion regarding the manner in which an insured depository institution or depository institution holding company reports loan loss reserves in its financial statement, including the amount of such reserves. Title III: Insurance - Subtitle A: State Regulation of Insurance - Declares that the McCarran-Ferguson Act remains the law of the United States. (Sec. 302) Mandates: (1) State licensure of any entity providing insurance in a State as principal or agent; and (2) State functional regulation of insurance sales activity (including a national bank exercising agency powers under the FRA). (Sec. 304) Prohibits a national bank and its subsidiaries from providing insurance as principal in a State, except for certain authorized products (which may not include title insurance or taxable annuity contracts). (Sec. 305) Prohibits national banks and subsidiaries from selling or underwriting title insurance, except for certain grandfathered banks and subsidiaries already doing so. Permits a national bank and its subsidiary to sell title insurance as agent in a State which permits its State banks to do so, subject to the same conditions. (Sec. 306) Establishes expedited dispute resolution for regulatory conflicts between State insurance regulators and Federal financial regulators. (Sec. 307) Amends the FDIA to direct the Federal banking agencies to issue consumer protection regulations that: (1) prohibit an insured depository institution from conditioning the extension of consumer credit upon insurance product purchases from the institution; (2) require physical segregation of banking activities from insurance product activities; and (3) prohibit discrimination against victims of domestic violence. Expresses the sense of Congress that the States should adopt regulations prohibiting such discrimination regarding insurance products that are at least as stringent as those under this Act. Mandates that the Federal banking agencies jointly establish a consumer complaint mechanism to address expeditiously violations of this Act. (Sec. 308) Preempts State law restricting: (1) insurance companies or insurance affiliates from becoming a financial holding company or acquiring control of a bank; and (2) the amount of an insurer's assets that can be invested in a bank (except that the insurer's State of domicile may limit such investments to five percent of the insurer's admitted assets). Preempts State laws that restrict reorganization by an insurer from mutual form to stock form. (Sec. 309) Declares that it is the intention of Congress that the Federal Reserve Board, as the umbrella supervisor for financial holding companies, and the State insurance regulators, as the functional regulators of companies engaged in insurance activities, coordinate efforts (including confidential sharing of information on financial condition, risk management policies, operations, transactions, and institutional relationship) to supervise companies that control both a depository institution and a company engaged in insurance activities regulated under State law. Subtitle B: Redomestication of Mutual Insurers - Declares this title applicable only to a mutual insurance company in a State which has not enacted legislation expressly establishing reasonable terms for a mutual insurance company domiciliary to reorganize into a mutual holding company. (Sec. 312) Authorizes a mutual insurer organized under the laws of any State to transfer its domicile to another State pursuant to a reorganization in which such insurer becomes a stock insurer that is a subsidiary of a mutual holding company. Requires prospective redomesticating insurers to comply with specified reorganization requirements of the State insurance regulator of the transferee domicile. Preempts State laws restricting such redomestication. Subtitle C: National Association of Registered Agents and Brokers - Sets forth a regulatory framework for uniform multistate licensing for insurance sales practices, to take effect only if a majority of the States have not enacted uniform laws and regulations governing the licensure of insurance sales by individuals and entities within three years after enactment of this Act. (Sec. 322) Establishes the National Association of Registered Agents and Brokers (the Association) as a non-profit, non-Federal agency, to provide a mechanism for uniform licensing, appointment, continuing education, and other insurance producer sales qualification requirements which can be adopted and applied on a multistate basis, while preserving the right of States to regulate insurance producers and insurance-related consumer protection and unfair trade practices. (Sec. 324) Subjects the Association (which shall not be considered a Federal agency or instrumentality) to regulation by the National Association of Insurance Commissioners. Requires the Association to establish an office of consumer complaints. Vests management of the Association in a board of directors. Cites circumstances under which Association rules preempt State regulation of insurance producers. Requires the Association to coordinate with the National Association of Securities Dealers in order to mitigate administrative burdens that may result from dual membership. Subtitle D: Rental Car Agency Insurance Activities - Establishes a presumption for a three-year period that no State law imposes any licensing, appointment, or education requirements on any person who solicits the purchase or sells insurance in connection with a motor vehicle lease or rental. Declares the preeminence of pertinent State insurance law. Subtitle E: Confidentiality - Prescribes guidelines under which an underwriter or vendor of annuities contracts or contracts insuring, guaranteeing, or indemnifying against loss, harm, or damage to health or medical status must protect the confidentiality of individually identifiable customer health, medical, and genetic information. Authorizes State enforcement of such guidelines. Title IV: Unitary Savings and Loan Holding Companies - Amends the Home Owners' Loan Act to prohibit new affiliations between savings and loan holding companies and certain commercial firms, except in specified circumstances. Sets forth a notice process for nonfinancial activities by a successor unitary holding company. (Sec. 402) Amends specified Federal law to declare that any depository institution whose is converted from that of a Federal savings association to a national bank or a State bank after enactment of this Act may retain the term "Federal" in its name so long as it remains an insured depository institution. Title V: Privacy of Consumer Information - Subtitle A: Disclosure of Nonpublic Personal Information - Declares it is the policy of Congress that each financial institution has a affirmative, continuing obligation to respect privacy and protect the confidentiality of customer nonpublic personal information. (Sec. 501) Instructs specified regulatory agencies to establish standards for financial institution safeguards that: (1) ensure security and confidentiality of customer records and information; and (2) protect against hazards or unauthorized access to such information. (Sec. 502) Conditions financial institution disclosure of customer nonpublic personal information to a nonaffiliated third party upon compliance with consumer notification prescriptions that include: (1) clear, conspicuous disclosures that such information may be disseminated to third parties; and (2) consumer opportunity to prevent such dissemination. Prohibits a financial institution from disclosing a consumer's access number or code to a nonaffiliated third party for use in telemarketing, direct mail marketing, or other marketing through electronic mail to the consumer. (Sec. 504) Requires selected Federal regulatory agencies to jointly prescribe implementing regulations. Confers enforcement authority upon designated Federal functional regulators, State insurance authorities, and the FTC. (Sec. 506) Revamps the Fair Credit Reporting Act enforcement guidelines to require certain Federal banking agencies to jointly prescribe regulations governing dissemination by holding companies and their affiliates of customer nonpublic personal information. (Sec. 508) Directs the Secretary of the Treasury, in conjunction with Federal functional regulators and the FTC, to study and report to Congress on information sharing practices among financial institutions and their affiliates. Subtitle B: Fraudulent Access to Financial Information - Declares it a violation of this Act to obtain, disclose, or provide documents under false pretenses pertaining to customer information of a financial institution. Exempts from such proscription: (1) law enforcement agencies; (2) financial institutions (and insurance institutions) engaged in testing security procedures, investigating misconduct or negligence, or recovering customer information obtained or received under false pretenses; (3) customer information of financial institutions available as a public record under Federal securities laws; and (4) State-licensed private investigators acting under court authorization to collect child support from a person adjudged delinquent. (Sec. 522) Grants the FTC enforcement powers under this Act. Subjects violations of this Act to Federal civil and criminal penalties. (Sec. 525) Requires each Federal banking and securities regulatory agency to update guidelines applicable to the financial institutions under their respective jurisdictions to ensure such institutions have controls in place to deter and detect the activities proscribed by this Act. (Sec. 526) Requires the Comptroller General to report to Congress on: (1) the efficacy and adequacy of the remedies provided in this Act; and (2) recommendations for additional action to address threats to financial information privacy. Directs the FTC and the Attorney General to report annually to Congress on enforcement actions taken pursuant to this Act.

TABLE OF CONTENTS: Title I: Facilitating Affiliation Among Banks, Securities Firms, and Insurance Companies Subtitle A: Affiliations Subtitle B: Streamlining Supervision of Bank Holding Companies Subtitle C: Activities of National Banks Subtitle D: National Treatment of Foreign Financial Institutions Title II: Insurance Customer Protections Title III: Regulatory Improvements Title IV: Federal Home Loan Bank System Modernization Title V: Functional Regulation of Brokers and Dealers Title VI: Unitary Savings and Loan Holding Companies Title VII: ATM Fee Reform Financial Services Modernization Act of 1999 - Title I: Facilitating Affiliation Among Banks, Securities Firms, and Insurance Companies - Subtitle A: Affiliations - Amends the Banking Act of 1933 (Glass-Steagall Act) to repeal prohibitions: (1) against affiliation of any Federal Reserve member bank with an entity engaged principally in securities activities (securities affiliate); and (2) against simultaneous service by any officer, director, or employee of a securities firm as an officer, director, or employee of any member bank (interlocking directorates). (Sec. 102) Amends the Bank Holding Company Act of 1956 (BHCA) to permit a bank holding company (BHC) to engage in any activity or to acquire the shares of any company whose activities have been determined by the Board of Governors of the Federal Reserve System (the Board) to be either financial in nature, or incidental to financial activities. Prescribes guidelines governing consultation and coordination between the Board and the Department of the Treasury to determine the financial nature of such activities. Prohibits such financial activities unless all insured BHC subsidiary depository institutions are well capitalized and well- managed, and the BHC has certified that they meet certain Board standards. Instructs the Board to apply comparable capital and management standards to a foreign bank that operates a branch or agency, or owns or controls a commercial lending company in the United States, giving due regard to the principle of national treatment and equality of competitive opportunity. Cites circumstances under which certain companies that become BHCs after enactment of this Act are authorized to continue their commodities transactions and affiliations. Amends the BHCA to exempt from its prohibition against interests in nonbanking organizations the shares of any company whose activities had been determined by the Board, as of the day before enactment of this Act, to be so closely related to banking as to be a proper incident thereto. (Sec. 104) Retains the McCarran-Ferguson Act as the law of the United States. Proscribes any State laws which impede or restrict insurance sales activities by an insured depository institution. Enumerates permissible State restrictions upon certain insurance sales practices conducted by insured depository institutions. Preserves certain State regulatory oversight over insurance. Preempts certain State affiliation laws governing insurance companies and affiliates. Exempts short-term motor vehicle leases or rentals from mandatory insurance licensing requirements. Subtitle B: Streamlining Supervision of Bank Holding Companies - Prohibits the Board from imposing any capital or capital adequacy criteria upon a BHC subsidiary that is not an insured depository institution, but is either in compliance with State or Federal capitalization rules, or is registered under the Investment Advisers Act of 1940. Prohibits the Board, in developing capital adequacy requirements, from taking into consideration any affiliated investment company which is neither a BHC nor controlled by one holding 25 percent or more shares of the investment company worth more than $1 million. Subjects securities and insurance activities conducted by a functionally regulated subsidiary of a bank to the jurisdiction of the Securities and Exchange Commission and State regulatory authorities. (Sec. 112) Declares ineffective and non-enforceable any Board actions requiring an insurance company BHC or a registered securities broker-dealer BHC to provide assets to an insured depository institution subsidiary if either the State insurance authority, or the SEC, determines in writing that such actions would have a material adverse effect on the BHC's financial condition. Permits the Board to order divestiture of the subsidiary in lieu of other action. (Sec. 113) Prohibits the Board from taking certain statutory action against a functionally regulated BHC subsidiary unless it is necessary to prevent or redress an unsafe or unsound practice, or breach of fiduciary duty that poses a material risk to the financial safety, soundness or stability of either an affiliated depository institution, or to the domestic or international payment system. (Sec. 114) Denies a Federal banking agency examination authority over a registered investment company that is neither a BHC nor a savings and loan holding company. Grants the Federal Deposit Insurance Corporation (FDIC) examination authority over an affiliate of an insured depository institution if the FDIC finds it necessary to determine the condition of the insured depository institution for insurance purposes. (Sec. 115) Declares that BHCA restrictions upon Board authority over BHCs and their functionally regulated subsidiaries also limit the authority of a Federal banking agency with respect to such companies and their subsidiaries. (Exempts the FDIC from such proscription in the exercise of its insurance oversight.) (Sec. 116) Prescribes guidelines under which the Board, a Federal banking agency, and a state insurance regulator may, upon request, exchange certain financial status information concerning a BHC in control of a company engaged in insurance activities (including a relationship between an insurance company and any affiliated depository institution). (Sec. 117) Amends the Federal Deposit Insurance Act (FDIA) to prohibit the use of the Bank Insurance Fund (BIF) and the Savings Association Insurance Fund (SAIF) to benefit any shareholder, subsidiary, or nondepository affiliate. Subtitle C: Activities of National Banks - Amends Federal banking law to provide that limitations placed on securities transactions by a national banking association for its own account do not apply to State, local, or municipal bond transactions by a well-capitalized national banking association. (Sec. 122) Delineates conditions under which a national bank may control or hold an interest in a financial subsidiary. Amends the Federal Reserve Act (FRA) to set forth statutory parameters for transactions between national banks, their financial subsidiaries, and nonbank affiliates. (Sec. 123) Permits a national bank to control or hold an interest in a company that engages in agency activities that have been deemed permissible for national banks if the company transacts such activities solely as agent and not as principal. (Sec. 124) Revises Federal criminal law to subject an institution- affiliated party to criminal sanctions for fraudulent misrepresentations concerning financial institution liability for obligations of such affiliate. (Sec. 125) Permits a national bank and its subsidiaries to provide insurance in a State as principal only in accordance with the Revised Statutes of the United States (as amended by this Act). Exempts authorized insurance products from such statutory parameters. Subtitle D: National Treatment of Foreign Financial Institutions - Amends the International Banking Act of 1978 (IBA) to terminate the grandfathered authority of a foreign bank or company to conduct specified activities if it files a certain BHCA declaration pertaining to interests in nonbanking organizations. Authorizes the Board to: (1) place restrictions upon a foreign bank or company comparable to those imposed upon a domestic counterpart if such entity has not timely filed a BHCA declaration regarding its status as a bank holding company; or (2) conduct examinations of a foreign bank or company in order to enforce compliance with Federal banking law. Title II: Insurance Customer Protections - Declares that the States shall functionally regulate the insurance activity of any person or entity, subject to the requirements of this Act. (Sec. 201) Amends the FDIA to require each Federal banking agency to promulgate insurance customer protection regulations which address: (1) sales practices; (2) disclosures and advertising; (3) antitying and anticoercion prohibitions relating to credit practices; (4) separation of banking and nonbanking activities (including physical segregation of banking activities from insurance product activities). Sets forth Federal preemption guidelines and Federal and State dispute resolution procedures. Title III: Regulatory Improvements - Amends the FDIA and the Deposit Insurance Funds Act of 1996 to eliminate the Special Reserve of the SAIF and of the Deposit Insurance Fund (DIF) (established to provide emergency funds if the reserve ratio of either fund remains below 50 percent of its designated ratio for one year). (Sec. 302) Directs the Comptroller General to study and report to Congress on the impact upon community banks of specified possible revisions to rules governing S corporations. (Sec. 303) Deems an insured depository institution rated "satisfactory" or better in its most recent examination (including each examination in the immediately preceding 36-month period) to be in compliance with the Community Reinvestment Act (CRA) until completion of a subsequent regularly scheduled examination. Places the burden of proving the substantial verifiable nature of information alleging CRA noncompliance upon the party filing such information. (Sec. 304) Financial Information Anti-Fraud of 1999 - Amends the Consumer Credit Protection Act to: (1) specify the types of enterprises constituting a financial institution within its purview; and (2) authorize the Federal Trade Commission (FTC) to prescribe regulations clarifying or describing the types of institutions which shall be treated as financial institutions for purposes of this Act. Declares it a violation of this Act to obtain or solicit customer information of a financial institution relating to another person under false pretenses with intent to deceive. Exempts from such proscription: (1) law enforcement agencies; (2) financial institutions engaged in testing security procedures, investigating misconduct or negligence, or recovering customer information obtained or received under false pretenses; as well as (3) customer information of financial institutions available as a public record under Federal securities laws. Grants the FTC, certain banking regulatory agencies, and the States enforcement powers under this Act. Subjects violations of this Act to Federal civil and criminal penalties. Requires each Federal banking agency to issue advisories to the depository institutions under its jurisdiction relating to the deterrence and detection of the activities proscribed by this Act. Requires the Comptroller General to report to the Congress: (1) on the efficacy and adequacy of the remedies provided in this Act addressing attempts to obtain financial information by fraudulent means or by false pretenses; and (2) any recommendations for additional action to address threats to the privacy of financial information created by such attempts. Directs the FTC to submit an interim report to Congress at the conclusion of each stage of its ongoing multistage study of consumer privacy issues. Directs the Federal banking agencies jointly to establish a consumer complaint mechanism to address expeditiously allegations of violations of certain FDIA regulations. (Sec. 305) Amends the BHCA concerning interests in nonbanking organizations to repeal limitations, including cross marketing restrictions, placed on banks which are controlled by certain banks not statutorily treated as BHCs. Redefines "permissible overdrafts." Prescribes procedures under which certain companies may avoid mandatory divestiture of banks under their control upon: (1) cessation of noncompliant conditions; and (2) implementation of procedures to avoid their reoccurrence. (Sec. 306) Mandates a "plain language" requirement for the promulgation of Federal agency banking rules. (Sec. 307) Amends Federal law to declare that any depository institution whose charter is converted from that of a Federal savings association to a national bank or a State bank after enactment of this Act may retain the term "Federal" in its name so long as it remains an insured depository institution. (Sec. 308) Exempts from CRA purview a community financial institution located in a non-metropolitan area whose aggregate assets do not exceed $100 million. (Sec. 309) Amends the Federal Power Act to cite circumstances under which its proscriptions against interlocking directorates (enacted to address abuses of interlocking directorates) are inapplicable to a person that holds or proposes to hold the positions of an officer or director of: (1) a public utility; and (2) a bank, trust company, banking association, or firm authorized to underwrite or participate in the marketing of securities of a public utility. (Sec. 311) Expresses the sense of the Congress that: (1) the States should implement uniform insurance agent and broker licensing requirements that result in a fully reciprocal licensing system, and eliminate requirements that have the effect of discriminating against non-resident insurance agents or brokers; (2) if the States fail to do so, Congress should take steps to rectify certain duplicative requirements among the States relating to insurance licensing, administration, and anticompetitive provisions; and (3) the National Association of Insurance Commissioners should supervise and exercise oversight over any entity congressionally established to rectify such problems. (Sec. 312) Amends the FDIA to require full public disclosure and an annual status report of any agreement entered into between an insured depository institution, its affiliate, and any non- governmental party, pursuant to, or in connection with the CRA, involving funds or other depository institution resources (including full text disclosure to the appropriate Federal banking regulatory agency). Establishes sanctions for violations of such mandate, including non-enforcement of the agreement for any violation by a nondepository institution. (Sec. 313) Amends the IBA to permit a foreign bank to upgrade its interstate branches or agencies to Federal or State status. (Sec. 314) Amends the Truth in Lending Act to mandate conspicuous disclosures of late payment deadlines and penalties on billing statements to consumers. Prescribes additional notice requirements governing introductory ("teaser") rates for identification of the fixed or variable interest rate which will apply following the introductory period. (Sec. 315) Revises FRA strictures regarding member bank transactions with affiliates to permit securities acquisition if a majority of bank directors determines that it is a sound investment, irrespective of the fact that a bank affiliate is principal underwriter of such securities. Repeals the current requirement that such directors be neither officers nor employees of the bank or any affiliate. (Sec. 316) Program for Investment in Microentrepreneurs Act of 1999 (or PRIME Act) - Amends the Riegle Community Development and Regulatory Improvement Act of 1994 to add to Title I a new subtitle C, which may be cited as the Program for Investment in Microentrepreneurs Act of 1999 (or PRIME Act). Directs the Administrator of the Community Development Financial Institutions Fund to establish a microenterprise technical assistance and capacity building program to provide Fund grants to qualified non-profit organizations to: (1) provide training and technical assistance to disadvantaged entrepreneurs; (2) provide training and capacity building services to help microenterprise development organizations and programs develop microenterprise training and services; and (3) aid in researching and developing the best practices in the field of microenterprise and technical assistance programs for disadvantaged entrepreneurs. Sets forth an allocation formula for such assistance and for grants benefitting very low-income persons, including those residing on Indian reservations. Authorizes a qualified organization to provide subgrants to small and emerging microenterprise entities. Mandates matching funds from non-Federal sources. Authorizes appropriations. (Sec. 317) Prescribes procedural guidelines for an annual independent audit of: (1) each Federal Reserve bank; and (2) the Board of Governors of the Federal Reserve System. Directs the Board to: (1) obtain annual independent audits of the consolidated financial statements of the Federal Reserve System based upon audit reports of the Board and of the Federal reserve banks; and (2) submit annually to certain congressional committees all requisite audits. Makes the transportation of paper checks in the clearing process a service covered by the Federal reserve banks' fee schedule. Modifies fee schedule guidelines to require that fees be established in each fiscal year (current law states "over the long run"). (Sec. 318) Directs the Securities and Exchange Commission (SEC) to study and report to Congress on: (1) certain advertising practices of online brokerage services as well as conventional media; and (2) recommended changes to protect investors and potential investors from improper or deceptive advertising. (Sec. 319) Amends the FHLBA to provide that: (1) advances to nonmember mortgagees must be subject to regulatory oversight of some governmental agency or a community development financial institution (not an insured depository institution or subsidiary) that, at the time the advance is made, is certified under the Community Development Banking and Financial Institutions Act of 1994; and (2) such mortgagees' principal activity in the mortgage field must consist of lending their own funds, with any advances permissively subject to the same collateralization requirements as applied to other nonmember borrowers. TITLE IV: Federal Home Loan Bank System Modernization - Federal Home Loan Bank System Modernization Act of 1999 - Amends the Home Owners' Loan Act (HOLA) to expand Federal Home Loan Bank (FHLB) membership parameters to make a Federal savings association's membership in the FHLB system voluntary instead of mandatory. Amends the Federal Home Loan Bank Act (FHLBA) to permit any member to withdraw if the Federal Housing Finance Board (FHFB) certifies that such withdrawal will not cause the FHLB system to fail to meet its obligation to contribute to the debt service for obligations of the Resolution Funding Corporation. (Currently such withdrawal is prohibited). (Sec. 404) Expands parameters governing long-term advances to: (1) include advances to any community financial institution for small businesses, small farms, and small agri-businesses; (2) state that FHLB cash (as well as, currently, deposits) are eligible collateral for securing a bank's interest in a loan or advance; and (3) repeal the 30 percent capital cap on the aggregate amount of outstanding advances that are secured by real estate related collateral. States that, in the case of any community financial institution, the collateral that is eligible for an FHLB loan includes secured loans for small business, agriculture, or securities representing a whole interest in secured loans. Authorizes an FHLB to renew certain advances on its own determination without concurrence by the FHFB. Requires an FHLB member with an advance secured by insufficient eligible collateral to reduce its level of outstanding advances according to a schedule determined by the FHLB (instead of, as currently, by the FHFB). Authorizes such Board to: (1) review the collateral standards applicable to each FHLB for designated classes of collateral; and (2) require an increase in such standards for safety and soundness purposes. (Sec. 405) Revises eligibility criteria to permit certain community financial institutions to gain FHLB membership regardless of the percentage of total assets represented by residential mortgage loans. (Sec. 406) Amends the FHLBA to increase from two years to four years the term of an elective director of a Federal home loan bank. Repeals the mandates for: (1) a procedure for informal review of certain supervisory decisions; and (2) the Housing Opportunity Hotline program. Repeals: (1) the prohibition against an FHLB's acquisition, without prior FHFB approval, of a bank building by purchase or an over-ten-year lease; (2) the requirement for FHFB approval of personnel decisions as well as the exercise of corporate powers by any FHLB; and (2) authorization for an FHLB president to be a member of the FHLB board. Grants the FHFB power to: (1) issue charges upon an FHLB or any executive officer or director for violation of law or regulation in connection with the granting of any application or other request by the bank, or any written agreement between the bank and the FHFB, and take affirmative action to correct conditions resulting from violations or practices, or to limit FHLB activities; and (2) sue and be sued. Repeals FHFB jurisdiction to approve the granting by an FHLB of a member's application to secure an advance. Revises guidelines governing reserves and dividends to permit dividend payments out of previously retained earnings or current net earnings (currently, only out of net earnings). Repeals the requirement for: (1) FHFB approval for such dividend payments; and (2) investment of FHLB reserves exclusively in U.S. obligations or certain other Federal Government-related securities. (Sec. 407) States that FHLB payments to the Resolution Funding Corporation to cover interest payments on obligations shall be a specified percentage of net earnings (currently an aggregate sum certain). (Sec. 408) Instructs the Comptroller General to study and report to Congress on possible revisions to the capital structure of the FHLB System and their possible impact upon the System's operations and a specified statutory obligation. Title V: Functional Regulation of Brokers and Dealers - Declares that it is the intent of this Act to ensure that securities transactions effected by a bank are regulated by securities regulators, subject to carefully defined exceptions which do not undermine the dominant the principle of functional regulation. (Sec. 501) Amends the Securities Exchange Act of 1934 to include: (1) certain bank activities within the definition of "broker" and "dealer" (thus subjecting them to registration requirements and regulation under such Act); and (2) a qualified Canadian government obligation within the definition of "government security." Title VI: Unitary Savings and Loan Holding Companies - Amends the HOLA to: (1) prohibit new affiliations between savings and loan holding companies and certain commercial firms, except in specified circumstances; and (2) permit certain Federal savings associations to convert, with approval of the Comptroller of the Currency, into one or more National banks, each of which may encompass one or more branches of the Federal savings association if the resulting National bank meets all requisite criteria applicable to such banks. Title VII: ATM Fee Reform - ATM Fee Reform Act of 1999 - Amends the Electronic Fund Transfer Act to mandate fee disclosures at the time of service by any automated teller machine (ATM) operator which imposes a fee for providing host transfer services to a consumer. (Sec. 703) Mandates disclosure at the time the consumer contracts for electronic fund transfer services that fees may be imposed for initiating electronic fund transfers from an electronic terminal which is not operated by the issuer of the consumer's access card. (Sec. 704) Requires the Comptroller General to study and report to Congress on the feasibility of requiring specified fee disclosures to the consumer before such consumer is irrevocably committed to completing the transaction. (Sec. 705) Shields an operator from liability under this Act if the operator has posted required notices, but they are subsequently removed, damaged, or altered by others.

TABLE OF CONTENTS: Title I: Facilitating Affiliation Among Banks, Securities Firms, and Insurance Companies Subtitle A: Affiliations Subtitle B: Streamlining Supervision of Bank Holding Companies Subtitle C: Activities of National Banks Subtitle D: National Treatment of Foreign Financial Institutions Title II: Insurance Customer Protections Title III: Regulatory Improvements Title IV: Federal Home Loan Bank System Modernization Title V: Functional Regulation of Brokers and Dealers Title VI: Unitary Savings and Loan Holding Companies Financial Services Modernization Act of 1999 - Title I: Facilitating Affiliation Among Banks, Securities Firms, and Insurance Companies - Subtitle A: Affiliations - Amends the Banking Act of 1933 (Glass-Steagall Act) to repeal prohibitions: (1) against affiliation of any Federal Reserve member bank with an entity engaged principally in securities activities (securities affiliate); and (2) against simultaneous service by any officer, director, or employee of a securities firm as an officer, director, or employee of any member bank (interlocking directorates). (Sec. 102) Amends the Bank Holding Company Act of 1956 (BHCA) to permit a bank holding company (BHC) to engage in any activity or to acquire the shares of any company whose activities have been determined by the Board of Governors of the Federal Reserve System (the Board) to be either financial in nature, or incidental to financial activities. Prescribes guidelines governing consultation and coordination between the Board and the Department of the Treasury to determine the financial nature of such activities. Prohibits such financial activities unless all insured BHC subsidiary depository institutions are well capitalized and well- managed, and the BHC has certified that they meet certain Board standards. Instructs the Board to apply comparable capital and management standards to a foreign bank that operates a branch or agency, or owns or controls a commercial lending company in the United States, giving due regard to the principle of national treatment and equality of competitive opportunity. Cites circumstances under which certain companies that become BHCs after enactment of this Act are authorized to continue their commodities transactions and affiliations. Amends the BHCA to exempt from its prohibition against interests in nonbanking organizations the shares of any company whose activities had been determined by the Board, as of the day before enactment of this Act, to be so closely related to banking as to be a proper incident thereto. (Sec. 104) Retains the McCarran-Ferguson Act as the law of the United States. Proscribes any State laws which impede or restrict insurance sales activities by an insured depository institution. Enumerates permissible State restrictions upon certain insurance sales practices conducted by insured depository institutions. Preserves certain State regulatory oversight over insurance. Preempts certain State affiliation laws governing insurance companies and affiliates. Exempts short-term motor vehicle leases or rentals from mandatory insurance licensing requirements. Subtitle B: Streamlining Supervision of Bank Holding Companies - Prohibits the Board from imposing any capital or capital adequacy criteria upon a BHC subsidiary that is not an insured depository institution, but is either in compliance with State or Federal capitalization rules, or is registered under the Investment Advisers Act of 1940. Prohibits the Board, in developing capital adequacy requirements, from taking into consideration any affiliated investment company which is neither a BHC nor controlled by one holding 25 percent or more shares of the investment company worth more than $1 million. Subjects securities and insurance activities conducted by a functionally regulated subsidiary of a bank to the jurisdiction of the Securities and Exchange Commission and State regulatory authorities. (Sec. 112) Declares ineffective and non-enforceable any Board actions requiring an insurance company BHC or a registered securities broker-dealer BHC to provide assets to an insured depository institution subsidiary if either the State insurance authority, or the SEC, determines in writing that such actions would have a material adverse effect on the BHC's financial condition. Permits the Board to order divestiture of the subsidiary in lieu of other action. (Sec. 113) Prohibits the Board from taking certain statutory action against a functionally regulated BHC subsidiary unless it is necessary to prevent or redress an unsafe or unsound practice, or breach of fiduciary duty that poses a material risk to the financial safety, soundness or stability of either an affiliated depository institution, or to the domestic or international payment system. (Sec. 114) Denies a Federal banking agency examination authority over a registered investment company that is neither a BHC nor a savings and loan holding company. Grants the Federal Deposit Insurance Corporation (FDIC) examination authority over an affiliate of an insured depository institution if the FDIC finds it necessary to determine the condition of the insured depository institution for insurance purposes. (Sec. 115) Declares that BHCA restrictions upon Board authority over BHCs and their functionally regulated subsidiaries also limit the authority of a Federal banking agency with respect to such companies and their subsidiaries. (Exempts the FDIC from such proscription in the exercise of its insurance oversight.) (Sec. 116) Prescribes guidelines under which the Board, a Federal banking agency, and a state insurance regulator may, upon request, exchange certain financial status information concerning a BHC in control of a company engaged in insurance activities (including a relationship between an insurance company and any affiliated depository institution). (Sec. 117) Amends the Federal Deposit Insurance Act (FDIA) to prohibit the use of the Bank Insurance Fund (BIF) and the Savings Association Insurance Fund (SAIF) to benefit any shareholder, subsidiary, or nondepository affiliate. Subtitle C: Activities of National Banks - Amends Federal banking law to provide that limitations placed on securities transactions by a national banking association for its own account do not apply to State, local, or municipal bond transactions by a well-capitalized national banking association. (Sec. 122) Delineates conditions under which a national bank may control or hold an interest in a financial subsidiary. Amends the Federal Reserve Act to set forth statutory parameters for transactions between national banks, their financial subsidiaries, and nonbank affiliates. (Sec. 123) Permits a national bank to control or hold an interest in a company that engages in agency activities that have been deemed permissible for national banks if the company transacts such activities solely as agent and not as principal. (Sec. 124) Revises Federal criminal law to subject an institution- affiliated party to criminal sanctions for fraudulent misrepresentations concerning financial institution liability for obligations of such affiliate. (Sec. 125) Permits a national bank and its subsidiaries to provide insurance in a State as principal only in accordance with the Revised Statutes of the United States (as amended by this Act). Exempts authorized insurance products from such statutory parameters. Subtitle D: National Treatment of Foreign Financial Institutions - Amends the International Banking Act of 1978 (IBA) to terminate the grandfathered authority of a foreign bank or company to conduct specified activities if it files a certain BHCA declaration pertaining to interests in nonbanking organizations. Authorizes the Board to: (1) place restrictions upon a foreign bank or company comparable to those imposed upon a domestic counterpart if such entity has not timely filed a BHCA declaration regarding its status as a bank holding company; or (2) conduct examinations of a foreign bank or company in order to enforce compliance with Federal banking law. Title II: Insurance Customer Protections - Declares that the States shall functionally regulate the insurance activity of any person or entity, subject to the requirements of this Act. (Sec. 201) Amends the FDIA to require each Federal banking agency to promulgate insurance customer protection regulations which address: (1) sales practices; (2) disclosures and advertising; (3) antitying and anticoercion prohibitions relating to credit practices; (4) separation of banking and nonbanking activities (including physical segregation of banking activities from insurance product activities). Sets forth Federal preemption guidelines and Federal and State dispute resolution procedures. Title III: Regulatory Improvements - Amends the FDIA and the Deposit Insurance Funds Act of 1996 to eliminate the Special Reserve of the SAIF and of the Deposit Insurance Fund (DIF) (established to provide emergency funds if the reserve ratio of either fund remains below 50 percent of its designated ratio for one year). (Sec. 302) Directs the Comptroller General to study and report to Congress on the impact upon community banks of specified possible revisions to rules governing S corporations. (Sec. 303) Deems an insured depository institution rated "satisfactory" or better in its most recent examination (including each examination in the immediately preceding 36-month period) to be in compliance with the Community Reinvestment Act (CRA) until completion of a subsequent regularly scheduled examination. Places the burden of proving the substantial verifiable nature of information alleging CRA noncompliance upon the party filing such information. (Sec. 305) Amends the BHCA concerning interests in nonbanking organizations to repeal limitations, including cross marketing restrictions, placed on banks which are controlled by certain banks not statutorily treated as BHCs. Redefines "permissible overdrafts." Prescribes procedures under which certain companies may avoid mandatory divestiture of banks under their control upon: (1) cessation of noncompliant conditions; and (2) implementation of procedures to avoid their reoccurrence. (Sec. 306) Mandates a "plain language" requirement for the promulgation of Federal agency banking rules. (Sec. 307) Amends Federal law to declare that any depository institution whose charter is converted from that of a Federal savings association to a national bank or a State bank after enactment of this Act may retain the term "Federal" in its name so long as it remains an insured depository institution. (Sec. 308) Exempts from CRA purview a community financial institution located in a non-metropolitan area whose aggregate assets do not exceed $100 million. (Sec. 309) Amends the Federal Power Act to cite circumstances under which its proscriptions against interlocking directorates (enacted to address abuses of interlocking directorates) are inapplicable to a person that holds or proposes to hold the positions of an officer or director of: (1) a public utility; and (2) a bank, trust company, banking association, or firm authorized to underwrite or participate in the marketing of securities of a public utility. (Sec. 311) Expresses the sense of the Congress that: (1) the States should implement uniform insurance agent and broker licensing requirements that result in a fully reciprocal licensing system, and eliminate requirements that have the effect of discriminating against non-resident insurance agents or brokers; (2) if the States fail to do so, Congress should take steps to rectify certain duplicative requirements among the States relating to insurance licensing, administration, and anticompetitive provisions; and (3) the National Association of Insurance Commissioners should supervise and exercise oversight over any entity congressionally established to rectify such problems. TITLE IV: Federal Home Loan Bank System Modernization - Federal Home Loan Bank System Modernization Act of 1999 - Amends the Home Owners' Loan Act (HOLA) to expand Federal Home Loan Bank (FHLB) membership parameters to make a Federal savings association's membership in the FHLB system voluntary instead of mandatory. Amends the Federal Home Loan Bank Act (FHLBA) to permit any member to withdraw if the Federal Housing Finance Board (FHFB) certifies that such withdrawal will not cause the FHLB system to fail to meet its obligation to contribute to the debt service for obligations of the Resolution Funding Corporation. (Currently such withdrawal is prohibited). (Sec. 404) Expands parameters governing long-term advances to: (1) include advances to any community financial institution for small businesses, small farms, and small agri-businesses; (2) state that FHLB cash (as well as, currently, deposits) are eligible collateral for securing a bank's interest in a loan or advance; and (3) repeal the 30 percent capital cap on the aggregate amount of outstanding advances that are secured by real estate related collateral. States that, in the case of any community financial institution, the collateral that is eligible for an FHLB loan includes secured loans for small business, agriculture, or securities representing a whole interest in secured loans. Authorizes an FHLB to renew certain advances on its own determination without concurrence by the FHFB. Requires an FHLB member with an advance secured by insufficient eligible collateral to reduce its level of outstanding advances according to a schedule determined by the FHLB (instead of, as currently, by the FHFB). Authorizes such Board to: (1) review the collateral standards applicable to each FHLB for designated classes of collateral; and (2) require an increase in such standards for safety and soundness purposes. (Sec. 405) Revises eligibility criteria to permit certain community financial institutions to gain FHLB membership regardless of the percentage of total assets represented by residential mortgage loans. (Sec. 406) Amends the FHLBA to increase from two years to four years the term of an elective director of a Federal home loan bank. Repeals the mandates for: (1) a procedure for informal review of certain supervisory decisions; and (2) the Housing Opportunity Hotline program. Repeals: (1) the prohibition against an FHLB's acquisition, without prior FHFB approval, of a bank building by purchase or an over-ten-year lease; (2) the requirement for FHFB approval of personnel decisions as well as the exercise of corporate powers by any FHLB; and (2) authorization for an FHLB president to be a member of the FHLB board. Grants the FHFB power to: (1) issue charges upon an FHLB or any executive officer or director for violation of law or regulation in connection with the granting of any application or other request by the bank, or any written agreement between the bank and the FHFB, and take affirmative action to correct conditions resulting from violations or practices, or to limit FHLB activities; and (2) sue and be sued. Repeals FHFB jurisdiction to approve the granting by an FHLB of a member's application to secure an advance. Revises guidelines governing reserves and dividends to permit dividend payments out of previously retained earnings or current net earnings (currently, only out of net earnings). Repeals the requirement for: (1) FHFB approval for such dividend payments; and (2) investment of FHLB reserves exclusively in U.S. obligations or certain other Federal Government-related securities. (Sec. 407) States that FHLB payments to the Resolution Funding Corporation to cover interest payments on obligations shall be a specified percentage of net earnings (currently an aggregate sum certain). (Sec. 408) Instructs the Comptroller General to study and report to Congress on possible revisions to the capital structure of the FHLB System and their possible impact upon the System's operations and a specified statutory obligation. Title V: Functional Regulation of Brokers and Dealers - Amends the Securities Exchange Act of 1934 to include: (1) certain bank activities within the definition of "broker" and "dealer" (thus subjecting them to registration requirements and regulation under such Act); and (2) a qualified Canadian government obligation within the definition of "government security". Title VI: Unitary Savings and Loan Holding Companies - Amends HOLA to declare specified restrictions inapplicable to certain unitary savings and loan holding companies in existence on or before a specified deadline, or whose applications were either filed or pending before such deadline. (Thus prohibits establishment of new unitary savings and loan holding companies.