A bill to strengthen the supervisory authority of the Federal banking agencies over financial institutions and their affiliates.

(Reported to Senate from the Committee on Banking, Housing and Urban Affairs with amendment, S. Rept. 94-843)

Authorizes the Federal Reserve Board in the case of any member bank and the Comptroller of the Currency in the case of a national bank to assess civil money penalties against a member bank or an individual of up to $1,000 per day for each violation for any violation of the Federal Reserve Act relating to loans to insiders and loans to affiliates.

Authorizes the assessment of a civil money penalty of $100 per day for each violation of such Act relating to reserve requirements and the amount of interest which may be paid on deposits at member banks.

Requires loans to officers, directors, and stockholders to be aggregated with loans to companies which such individuals control. Defines the terms "company" and "control" for purposes of the Federal Reserve Act. Provides that, when aggregated, such insider loans may not exceed the limitations provided for single borrowers for national banks or the limitations for State member banks or insured non-member banks.

Authorizes the Board to require the divestiture of a non-bank subsidiary of a holding company, not a subsidiary of a bank, or the termination of such non-bank activities wherever there is reasonable cause to believe that such subsidiary constitutes a serious risk to the financial safety, soundness, or stability of a bank holding company's subsidiary bank and is inconsistent with sound banking principles or with the purpose of the Bank Holding Company Act or with the Financial Institutions Supervisory Act.

Authorizes the Federal Savings and Loan Insurance Corporation, whenever it has reasonable cause to believe that the continuation by a savings and loan holding company of any activity or of ownership or control of any of its non-insured subsidiaries, constitutes a serious risk to the safety, soundness or stability of a subsidiary insured institution or institutions, to order the savings and loan holding company or any of its non-insured subsidiaries to terminate such activities or to terminate its ownership or control of any such subsidiary.

Authorizes the assessment of a civil money penalty for any violation of a provision of the Bank Holding Company Act.

Provides that any company which violates or any individual who participates in a violation of any provision of the National Housing Act relating to holding companies shall forfeit and pay a civil penalty of not more than $1,000 per day per violation for each day during which such violation continues.

Authorizes cease and desist proceedings and cease and desist orders and temporary cease and desist orders to be issued under the Financial Institutions Supervisory Act, the National Housing Act (for the FSLIC), and the Home Owners' Loan Act (for the Federal Home Loan Bank Board), directly against any director, officer, employee, agent, or any other person participating in the conduct of the affairs of a bank or a savings and loan institution.

Authorizes the issuance of an order to any director, officer or other person participating in the affairs of a bank or a savings and loan institution removing any such person from office or from participating in any manner in the conduct of the affairs of a bank upon a showing that such individual has exhibited personal dishonesty in a transaction or has demonstrated gross negligence in the operation or management of the bank or a willful disregard for the safety or soundness of the bank.

Authorizes the assessment of civil money penalties of not more than $10,000 per day per violation of any outstanding cease-and-desist or removal order under the Financial Institutions Supervisory Act.

Provides that any insured institution, savings and loan, or any institution the accounts of which are insured which violates, or any officer, director, employee, agent, or other person participating in the conduct of the affairs of an institution who violates a cease-and-desist order which has become final, shall forfeit and pay a civil penalty of not more than $10,000 per day per violation for each day during which such violation continues.

Makes applicable to insured non-member banks the requirements of the Federal Reserve Act relating to limitation loans and credit insiders. Authorizes civil money penalties to be assessed against insured non-member banks to the same extent as civil money penalties may be assessed against member banks.

Increases the limits on loans which may be made by a member bank to its executive officers.