Foreign Bank Control Act

Foreign Bank Control Act - States that, except as provided by this Act, no foreign person may, directly or indirectly, engage in banking in the United States.

Requires that, within one year after the date of enactment of this Act, the Secretary of the Treasury shall, in consultation with the Board of Governors of the Federal Reserve System, issue guidelines with respect to the optimal level of banking in the United States which should be conducted by subsidiaries of foreign persons chartered or deemed to be chartered under this Act.

Provides that in no event shall the Secretary recommend the granting or extension of a charter under this Act for the subsidiary of any foreign person or group of foreign persons if any person or persons organized or created under the laws of the United States or any State own or control more than 5 percent of the combined voting power of all classes of stock entitled to vote of any such foreign person.

Sets forth the form and procedure by which foreign persons may apply for banking charters in the United States.

States that the Secretary may recommend that a Federal or State charter be granted only if the Secretary finds that the granting of the charter would increase banking competition, promote the convenience and needs of the community and is not contrary to the national public interest, and furthers the foreign commerce of the United States.

Provides that in reviewing applications for charters the Secretary shall consider restrictions on entry imposed on American banks by foreign governments and shall seek to establish parity in the level of banking interchange.

Requires charter applicants to have $2,000,000 capital stock. Provides that such foreign banking subsidiaries shall have power to purchase, sell, discount, and negotiate, with or without its endorsement or guaranty, notes, drafts, checks, bills of exchange, acceptances, and other usual banking powers.

Provides that in no event shall any foreign person have at any one time more than one subsidiary which has been granted a State charter under this Act by more than one state; and more than five subsidiaries which have been granted Federal charters under this Act.

Requires such subsidiaries to maintain the same ratio of reserves against all classes of liabilities as comparably located Federal Reserve member banks maintain against deposits.

Prohibits a subsidiary of a foreign person or group of foreign persons which has been granted a Federal or State charter under this Act from being a member of the Federal Reserve System.

States that such subsidiaries shall not merge or consolidate with any other person, including any other subsidiary which has been granted a Federal or State charter under this Act.

Requires the Comptroller General, with the approval of the Secretary, to appoint examiners who shall examine twice in each calendar year every such subsidiary.

Provides that no person organized or created under the laws of the United States or any State may purchase or otherwise obtain any shares of stock or acquire any other interest in any such subsidiary.

Prohibits any foreign person or group of foreign persons, directly or indirectly, from purchasing or otherwise obtaining control of more than 5 percent of the combined voting power of all classes of stock entitled to vote of any bank or bank holding company.

Provides that whenever any foreign person or group of foreign persons: (1) control any bank organized under the laws of the United States or any State; or (2) own or control more than 5 percent of the combined voting power of all classes of stock entitled to vote of any bank organized under the laws of the United States or any State, then such bank be deemed to be a subsidiary of a foreign person or group of foreign persons chartered under this Act.

Empowers the Board to revoke or suspend any such charter after opportunity for a hearing if: (1) the subsidiary is conducting its business in an unsafe or unsound manner; (2) the continued operation of the subsidiary is contrary to the national public interest; or (3) any of the foreign persons or the subsidiary violates any rule perscribed by the Board or Secretary under this Act.