Financial Institutions Deregulation Act

Financial Institutions Deregulation Act - Amends the Banking Act of 1933 to allow a member bank to be affiliated with a depository institution securities affiliate.

Permits an officer, director, or employee of a member bank to serve at the same time as an officer, director or employee of its depository institution securities affiliate or affiliates.

Amends the Securities Act of 1933 to exempt from the registration requirements of such Act the issuance of a company's shares in connection with a reorganization.

Amends the Securities Exchange Act to make the Securities and Exchange Commission the appropriate regulatory agency to enforce a bank securities affiliate's compliance with regulations concerning transactions in municipal securities.

Amends the Bank Holding Company Act of 1956 to include depository institution securities affiliates within the definition of "bank" for the purposes of such Act. Defines "depository institution securities affiliate" to mean any corporation that: (1) is engaged in the United States in one or more of the activities authorized under such Act; and (2) is a broker or dealer within the meaning of the Securities Exchange Act of 1934 or an investment advisory within the meaning of the Investment Advisers Act of 1940.

Revises the process for the formation of a bank holding company.

Permits bank holding companies after notice and subject to approval by the Federal Reserve Board to engage in: (1) activities that the Board has determined to be closely related to banking or managing or controlling banks or to be of a financial nature; (2) insurance underwriting or brokerage; or (3) real estate investment, development or brokerage. Sets forth the criteria to be considered by the Board in connection with such notice.

Permits a bank holding company, subject to prior notice and certain requirements and conditions, to acquire shares in any company that engages only in the activities authorized for a depository institution securities affiliate under this Act.

Prohibits any bank holding company that establishes or acquires a securities affiliate or engages in securities affiliates activities from permitting any of the depository banks it controls to engage, directly or through a subsidiary, in specified securities activity one year after the securities affiliate starts business.

Permits a depository institution securities affiliate to conduct any securities or securities-related activity that a national banking association is not prohibited from conducting.

Permits a depository institution securities affiliate to: (1) deal in and underwrite all State and municipal general obligations and revenue bonds (including, under certain conditions, industrial development bonds); (2) organize, sponsor, operate, and control an investment company; (3) render investment advice; or (4) underwrite, distribute, and sell securities of any investment company.

Permits a bank holding company to acquire shares of a company engaged in any activities in which a multiple savings and loan holding company was authorized to engage in on July 1, 1983.

Limits Federal Reserve Board authority to: (1) require nonbanking subsidiaries of a bank holding company to submit reports regarding compliance with the provisions of the Bank Holding Company Act; and (2) conduct examinations of such subsidiaries.

Amends the Federal Reserve Act to allow a member bank and its subsidiaries to engage in a covered transaction or a financial assistance transaction with an affiliate only on substantially the same terms prevailing for comparable transactions with other nonaffiliated companies.

Prohibits a member bank and its affiliates from publishing any advertisement suggesting that the member bank is responsible for its affiliates' obligations.

Prohibits a member bank and its affiliates from purchasing as fiduciary any securities or other assets from an affiliate unless lawfully authorized by the instrument creating the fiduciary relationship, by court, or by local law.

Prohibits a member bank and its subsidiaries except in certain circumstances from purchasing or otherwise acquiring, during the existence of any underwriting or selling syndicate, any obligation a principal underwriter of which is one of its affiliates or subsidiaries.

Amends the Investment Company Act of 1940 to permit an investment company affiliated with a depository institution securities affiliate, but only with prior approval of the Securities and Exchange Commission, to: (1) place or maintain its securities or similar investments in the custody of a bank affiliated with such depository institution securities affiliate; (2) designate any such bank as trustee or custodian; or (3) deposit designated proceeds with any such bank.

Amends the Bank Holding Company Act Amendments of 1970 to permit a trade association to commence, on behalf of an association member, any private right of action for injunctive relief against threatened loss or damage as a result of a violation of the prohibitions against tying arrangements.

Amends the Savings and Loan Holding Company Amendments of 1967 to subject all unitary savings and loan holding companies to the same restrictions on their activities as multiple savings and loan holding companies. Declares that such restrictions shall not apply to any company that acquires an insured institution between July 1, 1983, and the effective date of this Act.

Sets forth activities to which such restrictions do not apply.

Authorizes savings and loan holding companies to acquire banks insured by the Federal Savings and Loan Insurance Corporation.

Sets forth limitations to which any such acquisition is subject.

Exempts from prohibitions against interaffiliate transactions the transactions of any subsidiary insured institution of a savings and loan holding company with an affiliate engaged in permitted business activities.

Exempts from prior approval requirements the formation of a savings and loan holding company involving a reorganization of interest from individual ownership to holding company form.

Declares that no State shall prohibit the affiliation of an association with a company engaged solely in one or more of the activities authorized for savings and loan holding companies under this Act.

Amends the Home Owners' Loan Act of 1933 to authorize savings and loan institutions to invest in depository institution service corporations in accordance with the requirements, conditions, and limitations set forth by this Act.

Permits a trade association to commence any action for injunctive relief against threatened loss or damage resulting from a violation of such Act's prohibitions against tying arrangements.

Amends the Bank Service Corporation Act to rename such Act the Depository Institution Service Corporation Act.

Sets forth limitations on the amount a depository institution may invest in depository institution service corporations.

Describes the depository institution service corporation activities permissible for depository institutions.

Subjects a depository institution service corporation to examination and regulation by the appropriate Federal supervisory agency of its principal investor to the same extent as its principal investor.

Provides grandfather rights to service corporation investors and for service corporation activities where an investment was made and the activities were commenced prior to July 1, 1983.

Authorizes any association, which is organized and continues to operate in the mutual form, to invest in the capital stock obligations or other securities of any corporation (a mutual thrift service corporation) organized under State laws if the entire capital stock of such corporation is available for purchase only by savings and loan associations having their home offices in such State.