Financial Industry Reform and Capital Enforcement Act

Financial Industry Reform and Capital Enforcement Act - Title I: Creation and Control of Depository Institution Holding Companies - Sets forth the terms and conditions under which a depository institution holding company (DIHC) can be established and must be operated.

Requires any DIHC seeking to acquire control of an insured bank, an insured institution, a bank holding company, a savings and loan holding company, or a depository institution holding company to comply with the requirements of the Change in Bank Control Act.

Permits the appropriate Federal regulatory agency (the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Board of Directors of the Federal Deposit Insurance Corporation, or the Federal Home Loan Bank Board) to adopt rules and regulations to prevent an insured bank or institution that is controlled by a DIHC from engaging in unsafe or unsound practices.

Subjects DIHCs to the same restrictions on affiliate transactions that are imposed upon member banks (banks which are members of a Federal Reserve bank) under the Federal Reserve Act.

Requires the appropriate Federal regulatory agency to notify a DIHC immediately upon finding that an insured depository institution under its control is not in compliance with minimum capital adequacy requirements. Authorizes such agency to require the DIHC to: (1) provide a bond or guarantee; (2) maintain a segregated account of cash or investment securities earmarked for such noncomplying institution; or (3) contribute to the noncomplying institution's surplus capital an amount necessary to bring it into compliance. Prohibits an insured depository institution that has been notified of its noncompliant status from declaring or paying out any dividends. Requires the DIHC to return to the noncomplying institution immediately any dividends received during a specified period before receipt of such notification. Prescribes guidelines for the appointment of a Federal conservator or for divestiture if a DHIC does not bring a noncomplying institution within Federal guidelines. Authorizes judicial review of a Federal conservatorship or divestiture order. Prohibits Federal regulatory agencies from imposing requirements pertaining to the capitalization of a DIHC.

Subjects interstate acquisitions: (1) of an insured bank by a DIHC to the same restrictions applicable to bank holding companies under the Bank Holding Company Act of 1956; and (2) of an additional savings association by a DIHC to the same restrictions applicable to savings and loan companies.

Prohibits Federal and State governments from enacting laws that discriminate against DIHCs.

Prohibits insured banks and institutions that are associated with a DIHC from: (1) dealing in or underwriting securities; (2) underwriting insurance; or (3) investing in or developing real estate.

Subjects DIHCs to the tying provisions of the Bank Holding Company Act Amendments of 1970 and to the insider lending prohibitions of the Federal Reserve Act.

Makes conforming amendments to the Bank Holding Company Act of 1956.

Amends the Federal Reserve Act to provide that, for the purpose of restricting loans or extending credit to affiliates, a loan or extension of credit shall not be deemed to be made to an affiliate if: (1) the approval of such loan or extension of credit was in accordance with the same standards and procedures and on substantially the same terms that apply to similar loans or extensions of credit; and (2) such loan or extension of credit was not made for the purpose of evading any of the requirements of such Act.

Amends the Banking Act of 1933 to make certain provisions which prohibit member banks from becoming affiliated with securities corporations inapplicable to member banks which are controlled by DIHCs.

Makes conforming amendments to the Federal Deposit Insurance Act and the National Housing Act. Requires the acquisitions of DIHCs controlling insured institutions to be in accordance with the procedures of such Acts.

Amends the Clayton Act to exempt acquisitions of insured banks and institutions by DIHCs from the premerger notification requirements of the Depository Institution Affiliation Act, the Federal Deposit Insurance Act, and the National Housing Act.

Makes conforming amendments to the Community Reinvestment Act.

Title II: Supervisory Improvements - Establishes a National Financial Services Oversight Committee to: (1) establish uniform principles and standards for the examination and supervision of financial services providers; (2) report to the Congress recommendations for an improved examination process and whether the number or compensation of Federal examiners should be increased; and (3) make recommendations to Federal regulatory agencies to maintain uniformity in Federal regulations.