Its actually bloody difficult to simplify the bill.
It might be better to re-introduce it but make amendments - Comptroller of Currency to Attorney General etc and introduce Senate control over the confirmation of the nominated conservator. And other such things to make it fit with our system.
This was the first draft.
Bank Conservation Act 2008Section 1Section 1a. The Senate recognises than depository institutions possess considerably financial power by virtue of their control of the money of others. Its extent must be limited to ensure soundness and competition in the market for funds, loans and investments.
Section 1b. The Senate further recognises that securities activities involve risk that if miscalculated can lead to enormous losses. Any such losses can, in return threaten the integrity of deposits. In turn, the Federal Government insures deposits and could be required, in times of prolonged loss, to pay large sums if depository institutions were to collapse as the result of securities losses.
Section 1c. Therefore, it is understood that it is the national interest for depository institutions be managed to limit risk.
Section 2. The Gramm-Leach-Bliley Act is hereby repealed.
Section 3.Section 3a. This title may be cited as the ''Bank Conservation Act.''
Section 3b. As used in this title, the term ''bank'' means (1) any national banking association, and (2) any bank or trust company located in the District of Columbia and operating under the supervision of the Comptroller of the Currency; and the term ''State'' means any State, Territory, or possession of Atlasia.
Section 3c. Whenever he shall deem it necessary in order to conserve the assets of any bank for the benefit of the depositors and other creditors thereof, the Attorney General may nominate, a conservator for such bank and require of him such bond and security as the Attorney General deems proper.
Section 3d. The approval of the nominated conservator will be at the discretion of the Senate.
Section 3e. The conservator, under the direction of the Attorney General, shall take possession of the books, records, and assets of every description of such bank, and take such action as may be necessary to conserve the assets of such bank pending further disposition of its business as provided by law. Such conservator shall have all the rights, powers, and privileges now possessed by or hereafter given receivers of insolvent national banks and shall be subject to the obligations and penalties, not inconsistent with the provisions of this title, to which receivers are now or may hereafter become subject.
Section 3f. The conservator shall receive as salary an amount no greater than that paid to employees of the Federal Government for similar services.
Section 4.Section 4a. The Attorney General shall cause to be made such examinations of the affairs of such bank as shall be necessary to inform him as to the financial condition of such bank, and the examiner shall make a report thereon to the Attorney General at the earliest practicable date.
Section 4b. If the Attorney General becomes satisfied that it may safely be done and that it would be in the public interest, he may, in his discretion, terminate the conservatorship and permit such bank to resume the transaction of its business subject to such terms, conditions, restrictions and limitations as he may prescribe.
Section 4c. In any reorganization of any national banking association under a plan of a kind which, under existing law, requires the consent, as the case may be, (a) of depositors and other creditors or (b) of stockholders or (c) of both depositors and other creditors and stockholders, such reorganization shall become effective only (1) when the Attorney General shall be satisfied that the plan of reorganization is fair and equitable as to all depositors, other creditors and stockholders and is in the public interest and shall have approved the plan subject to such conditions, restrictions and limitations as he may prescribe.
Section 4d. The Attorney General is hereby authorized and empowered, with the approval of the Senate, to prescribe such rules and regulations as he may deem necessary in order to carry out the provisions of this title. Whoever violates any rule or regulation made pursuant to this section shall be deemed guilty of a misdemeanor and, upon conviction thereof, shall be fined not more than $50,000, or imprisoned not more than one year, or both.
