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by an insured depository institution increases in times of economic expansion and decreases in times of economic contraction, consistent with the safety and soundness of the insured depository institution.’’ (d) SOURCE OF STRENGTH.—The Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) is amended by inserting after section 38 (12 U.S.C. 1831o) the following:

12 USC 1831o–1. ‘‘SEC. 38A. SOURCE OF STRENGTH.
‘‘(a) HOLDING COMPANIES.—The appropriate Federal banking
agency for a bank holding company or savings and loan holding
company shall require the bank holding company or savings and
loan holding company to serve as a source of financial strength
for any subsidiary of the bank holding company or savings and
loan holding company that is a depository institution.
‘‘(b) OTHER COMPANIES.—If an insured depository institution
is not the subsidiary of a bank holding company or savings and
loan holding company, the appropriate Federal banking agency
for the insured depository institution shall require any company
that directly or indirectly controls the insured depository institution
to serve as a source of financial strength for such institution.
‘‘(c) REPORTS.—The appropriate Federal banking agency for
an insured depository institution described in subsection (b) may,
from time to time, require the company, or a company that directly
or indirectly controls the insured depository institution, to submit
a report, under oath, for the purposes of—
‘‘(1) assessing the ability of such company to comply with
the requirement under subsection (b); and
‘‘(2) enforcing the compliance of such company with the
requirement under subsection (b).
Deadline. ‘‘(d) RULES.—Not later than 1 year after the transfer date,
as defined in section 311 of the Enhancing Financial Institution
Safety and Soundness Act of 2010, the appropriate Federal banking
agencies shall jointly issue final rules to carry out this section.
‘‘(e) DEFINITION.—In this section, the term ‘source of financial
strength’ means the ability of a company that directly or indirectly
owns or controls an insured depository institution to provide finan-
cial assistance to such insured depository institution in the event
of the financial distress of the insured depository institution.’’.
12 USC 1467a (e) EFFECTIVE DATE.—The amendments made by this section
note. shall take effect on the transfer date.

SEC. 617. ELIMINATION OF ELECTIVE INVESTMENT BANK HOLDING
COMPANY FRAMEWORK.
(a) AMENDMENT.—Section 17 of the Securities Exchange Act
of 1934 (15 U.S.C. 78q) is amended—
(1) by striking subsection (i); and
(2) by redesignating subsections (j) and (k) as subsections
(i) and (j), respectively.
15 USC 78q note. (b) EFFECTIVE DATE.—The amendments made by this section
shall take effect on the transfer date.

12 USC 1850a. SEC. 618. SECURITIES HOLDING COMPANIES.
(a) DEFINITIONS.—In this section—
(1) the term ‘‘associated person of a securities holding com-

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