Safe Banking Act

Safe Banking Act - Title I: Supervisory Authority over Depository Institutions - Creates civil penalties for specified insider loans and loans to affiliates prohibited by the Federal Reserve Act; for violations of reserve requirements under such Act; and for violations of the National Bank Act relating to one borrower loan limits.

Amends the Federal Reserve Act and the Federal Deposit Insurance Act to prohibit member banks and State nonmember banks from making loans to specified insiders where the amount of such loan, when aggregated with the amount of all other loans then outstanding by such bank to such insider, would exceed 50 percent of the limits on loans to a single borrower established by the Federal Reserve Act.

Amends the National Housing Act to grant authority to the Federal Savings and Loan Insurance Corporation to make loans to a savings and loan association in order that it may buy the assets of a failing savings and loan.

Authorizes financial regulatory agencies, including the National Credit Union Administration and the Federal Home Loan Bank Board, to initiate cease and desist actions against officers, directors, stockholders, or any person participating in the affairs of a financial institution (as well as against the institution itself as is allowed current law) when there have been violations of laws and regulations or unsafe and unsound banking practices which are likely to seriously weaken the condition of the institution in question.

Sets forth a procedure to be followed for removal of officers and directors for breach of judiciary duty, which is defined as personal dishonesty or continuing disregard for the safety of the institution.

Creates a hearing process for removal of a bank officer or director based on an indictment for or conviction of a felony.

Title II: Interlocking Directors - Depository Institution Management Interlocks Act - Prohibits interlocking management and director relations between any depository institutions located in the same metropolitan area, savings loan associations, insurance companies, title companies, companies which appraise real property, and companies which close real estate transactions. States that this prohibition applies without regard to geographical limits where such an institution has assets exceeding $1,000,000,000 and seeks an interlocking relationship with any institution with assets over $500,000,000. Permits any person who is operating as a management official and whose activity was not in violation of this Act at the beginning of such service, to continue to serve in that position for a period not to exceed 15 months.

States that a violation of this Title constitutes a violation of the Clayton Act. Charges the Antitrust Division of the Department of Justice with investigations of possible violations. Delegates authority for the enforcement of this Act.

Title III: Foreign Branching - Amends the Federal Deposit Insurance Act to prohibit any State nonmember insured bank from operating any foreign branch without prior written consent of the Federal Deposit Insurance Corporation (FDIC). Permits such bank to acquire evidence of ownership in any foreign bank with such consent.

States that when the liabilities of an insured bank for deposits are assumed by another insured bank the following shall occur: (1) the insured status of the bank whose liabilities are assumed shall terminate on the date of receipt by the FDIC of evidence of such assumption; (2) termination of separate insurance of all assumed deposits at the end of six months from the effective date; and (3) notification of such assumption by the assuming bank to each of the depositors of the assumed bank.

Subjects performance of any bank services for a bank which is examined by a Federal supervisory agency to regulation by such agency. Requires such bank to notify such agency of the service relationship.

Title IV: Conflicts of Interest - Depository Institutions Conflict of Interest Act - Amends the Federal Reserve Act to provide for the appointment by the President of the Senate, of a chairman and a vice chairman of the Federal Reserve Board.

Amends the Federal Deposit Insurance Act, the Federal Reserve Act and the Federal Home Loan Bank Act to prohibit specified Presidential-appointee bank regulatory agency heads and members of such agencies from being employed for a period of two years after they leave office by institutions under their regulatory jurisdiction or with a holding company of affiliate.

States that the Chairman of the Board of Governors of the Federal Reserve System shall be paid a salary at the Level I or Cabinet level and the remaining members shall be compensated at the Level III rate.

Title V: Credit Union Restructuring - Amends the Federal Credit Union Act to place the National Credit Union Administration under the management of a National Credit Union Administration Board.

Directs the Chairperson of such Board to be the spokesperson of the Board and to represent the Board and the National Credit Union Administration in its official relations with other branches of the Government.

Requires each Federal credit union to pay the Administration an annual operating fee and to make annual financial reports to the Board.

Title VI: Change in Bank Control Act - Amends the Federal Deposit Insurance Act to authorize the Federal Deposit Insurance Corporation, with consultation with the Board of Governors of the Federal Reserve System and the Comptroller of the Currency, to approve or deny in advance any change in control of any bank insured under this Act. Sets forth the procedure for such approvals or denials.

Disallows approval if the change would create a monopoly, lessen competition, threaten the safety of the institution, or if the management capability of the applicant is not sound.

Subjects the stock of all insured banks to the margin requirements established pursuant to the Securities Act of 1934.

Requires insured banks to fully disclose bank stock loans to the Federal Deposit Insurance Corporation.

Sets forth civil penalties for violations of this Title.

Title VII: Change in Savings and Loan Control Act - Amends the National Housing Act to authorize the Federal Deposit Insurance Corporation to approve or deny in advance any change in control of any savings and loan association. Sets forth the procedure for such approvals or denials.

Subjects the stock of all insured institutions to the margin requirements established pursuant to the Securities Act of 1934.

Requires insured institutions to fully disclose bank stock loans to the Federal Deposit Insurance Corporation.

Sets forth civil penalties for violations of this Title.

Title VIII: Correspondent Accounts - Amends the Federal Deposit Insurance Act to direct each appropriate banking agency to study and report to Congress various aspects of interbank accounts.

Title IX: Disclosure of Material Facts - Amends the Federal Deposit Insurance Act to require banks to include the following (in addition to other items) in at least one report of condition filed annually: (1) a list of all stockholders of record owning five percent or more of the stock of the institution; (2) a list by name of each insider, his maximum amount of indebtedness during such period, his outstanding amount of indebtedness, the range of interest rates charged on such indebtedness and the terms and conditions of such indebtedness; and (3) a list of the dollar amount of loans classified substandard, doubtful, and loss at the last examination of the bank.

Title X: Financial Institutions Examination Council - Federal Bank Examination Council Act - Establishes the Bank Examination Council which shall prescribe uniform principles and standards for the Federal examination of financial institutions. Directs the Council to make recommendations for uniformity in other supervisory matters, including classification of loans subject to risk and identification of financial institutions in need of special supervisory attention.

Requires the Council to establish a liaison committee composed of five representatives of State supervisory agencies in order to encourage the application of uniform examination principles and standards by State and Federal supervisory agencies.

Authorizes the Comptroller of the Currency, upon the request of the Board of Governors of the Federal Reserve System, to examine foreign operations of State member banks.

Title XI: Right to Financial Privacy - Right to Financial Privacy Act - Prohibits any Federal Agency or employee, or any State of local government, from obtaining copies of, access to, or the information contained in, the financial records of any customer from a financial institution unless such records are described with particularity and: (1) such customer has authorized such disclosure in accordance with this Act; (2) such records are disclosed in response to an administrative subpena or summons; (3) such records are disclosed in response to a court order; or (4) such records are disclosed in response to a judicial subpena.

States that no depository institution may provide to a Federal agency or employee, or to any State or local government, copies of or the information contained in the financial records of any customer except in accordance with the requirements of this Act.

Requires that any depository institution which operates a customer bank communications terminal establish precautions which prevent unauthorized access to, or use of, the terminal and disclosure to unauthorized parties.

Sets forth provisions governing customer authorization, administrative subpenas and summons, judicial subpenas, and search warrants.

Prescribes civil and criminal penalties for violation of the provisions of this Title.

Title XII: Charters for Thrift Institutions - Amends the Home Owners' Loan Act to authorize the Home Loan Bank Board to provide for the organization, chartering operation, and regulation of associations to be known as Federal Savings and Loan Associations or Federal mutual savings banks.

Subjects converting mutual savings banks to: (1) the requirements of existing State law pertaining to discrimination in the extension of home mortgage loans if the State requirements are more stringent than Federal laws and regulations; (2) a residential housing investment quota; and (3) such conditions of the Federal Home Loan Bank Board may prescribe.

Establishes a five year shared risk program in the event that a converting institution fails.

Title XIII: Holding Companies - Grants cease and desist and removal authority to the Board of Governors of the Federal Reserve System with respect to bank holding companies and to the Federal Home Loan Bank Board with respect to savings and loan holding companies.

Sets forth civil penalties for violations of the Bank Holding Company Act.

Eliminates the exemption for agricultural, labor, and horticultural organizations under the Bank Holding Company Act.

Permits the waiver of the 30 day notice requirement for acquisitions of banks by bank holding companies when the action would facilitate the acquisition of a failing bank.

Prohibits bank mergers or acquisitions by bank holding companies if such transactions would result in a monopoly, furtherance of a combination or conspiracy to monopolize, or substantially lessen competition in any section of the country unless such anticompetitive effects are clearly outweighed in the public interest by the probable effect of the transaction in meeting the convenience and needs of the community to be served. Prohibits such transactions if the appropriate regulatory agency finds that as a result of such transaction any one bank or holding company will control more than 20 percent of the banking assets held by banks in the States in which such bank of holding company is located. Excepts from such 20 percent prohibition a transaction which the appropriate agency finds to be immediately necessary to prevent the probable failure of a bank and where such agency finds that a less anticompetitive alternative is not available. Gives the appropriate agency discretion to prohibit such a transaction even if it is not disallowed by any other part of this Act if it is found to have probable adverse effects on competition or market concentration which are not clearly outweighed by the public interest.

Gives the Department of Justice an independent right to seek a court injunction for any violation of this Act. Gives the district courts of the United States jurisdiction to prevent and restrain violations of this Act.

Restricts standards for the entry of bank holding companies into bank related activities by requiring that such companies may not enter into such activities unless they are so closely and directly related to banking or managing or controlling banks that they are considered a proper and necessary incident thereto. Requires that such activity be likely to produce substantial benefits to the public which clearly and significantly outweigh possible adverse affects.

Allows a bank holding company to continue specified activities so long as it has continuously engaged in those activities.

Prohibits any national bank from engaging in any activity which the Board finds to be an improper activity for bank holding companies in general, or the holding company owning the bank in question, in particular.

Requires bank holding companies and their subsidiaries to be capitalized in a safe and sound manner and to refrain from discriminating in making loans in favor of their parent holding company or their affiliated subsidiaries.

Requires regular reports to the Board dealing with all intercompany loans.

Sets forth procedures for administration of this Act and for judicial review.

Gives to any interested person the right to petition the Board to commence a proceeding to consider the issuance, amendment, or revocation of a regulation promulgated here under.

Title XIV: Effective Date - States that this Act shall take effect 120 days after enactment.