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this subparagraph, the Board shall take into consider- ation the terms of investment for the hedge fund or private equity fund, including contractual obligations, the ability of the fund to divest of assets held by the fund, and any other factors that the Board deter- mines are appropriate. ‘‘(B) HEDGE FUND.—For the purposes of this paragraph, the term ‘hedge fund’ means any fund identified under subsection (h)(2), and does not include a private equity fund, as such term is used in section 203(m) of the Invest- ment Advisers Act of 1940 (15 U.S.C. 80b-3(m)).’’.

SEC. 620. STUDY OF BANK INVESTMENT ACTIVITIES.
(a) STUDY.—
(1) IN GENERAL.—Not later than 18 months after the date Deadline.
of enactment of this Act, the appropriate Federal banking agen-
cies shall jointly review and prepare a report on the activities
that a banking entity, as such term is defined in the Bank
Holding Company Act of 1956 (12 U.S.C. 1841 et. seq.), may
engage in under Federal and State law, including activities
authorized by statute and by order, interpretation and guid-
ance.
(2) CONTENT.—In carrying out the study under paragraph
(1), the appropriate Federal banking agencies shall review and
consider—
(A) the type of activities or investments;
(B) any financial, operational, managerial, or reputa-
tion risks associated with or presented as a result of the
banking entity engaged in the activity or making the invest-
ment; and
(C) risk mitigation activities undertaken by the
banking entity with regard to the risks.
(b) REPORT AND RECOMMENDATIONS TO THE COUNCIL AND TO
CONGRESS.—The appropriate Federal banking agencies shall submit
to the Council, the Committee on Financial Services of the House
of Representatives, and the Committee on Banking, Housing, and
Urban Affairs of the Senate the study conducted pursuant to sub-
section (a) no later than 2 months after its completion. In addition
to the information described in subsection (a), the report shall
include recommendations regarding—
(1) whether each activity or investment has or could have
a negative effect on the safety and soundness of the banking
entity or the United States financial system;
(2) the appropriateness of the conduct of each activity or
type of investment by banking entities; and
(3) additional restrictions as may be necessary to address
risks to safety and soundness arising from the activities or
types of investments described in subsection (a).

SEC. 621. CONFLICTS OF INTEREST.
(a) IN GENERAL.—The Securities Act of 1933 (15 U.S.C. 77a
et seq.) is amended by inserting after section 27A the following:

‘‘SEC. 27B. CONFLICTS OF INTEREST RELATING TO CERTAIN 15 USC 77z–2a.
SECURITIZATIONS.

LAWS ‘‘(a) IN GENERAL.—An underwriter, placement agent, initial purchaser, or sponsor, or any affiliate or subsidiary of any such entity, of an asset-backed security (as such term is defined inPUBLIC with on anorris VerDate Nov 24 2008 12:15 Aug 04, 2010 Jkt 089139 PO 00203 Frm 00257 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL203.111 APPS06 PsN: PUBL203