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in section 8(b)(3) of the Federal Deposit Insurance Act (12 U.S.C. 1818(b)(3)). (b) ENFORCEMENT AUTHORITY FOR FUNCTIONALLY REGULATED SUBSIDIARIES.— (1) REFERRAL.—If the Board of Governors determines that a condition, practice, or activity of a depository institution subsidiary or functionally regulated subsidiary of a nonbank financial company supervised by the Board of Governors does not comply with the regulations or orders prescribed by the Board of Governors under this Act, or otherwise poses a threat to the financial stability of the United States, the Board of Governors may recommend, in writing, to the primary financial regulatory agency for the subsidiary that such agency initiate a supervisory action or enforcement proceeding. The rec- ommendation shall be accompanied by a written explanation of the concerns giving rise to the recommendation. (2) BACK-UP AUTHORITY OF THE BOARD OF GOVERNORS.— If, during the 60-day period beginning on the date on which the primary financial regulatory agency receives a recommenda- tion under paragraph (1), the primary financial regulatory agency does not take supervisory or enforcement action against a subsidiary that is acceptable to the Board of Governors, the Board of Governors (upon a vote of its members) may take the recommended supervisory or enforcement action, as if the subsidiary were a bank holding company subject to super- vision by the Board of Governors.

12 USC 5363. SEC. 163. ACQUISITIONS.
(a) ACQUISITIONS OF BANKS; TREATMENT AS A BANK HOLDING
COMPANY.—For purposes of section 3 of the Bank Holding Company
Act of 1956 (12 U.S.C. 1842), a nonbank financial company super-
vised by the Board of Governors shall be deemed to be, and shall
be treated as, a bank holding company.
(b) ACQUISITION OF NONBANK COMPANIES.—
(1) PRIOR NOTICE FOR LARGE ACQUISITIONS.—Notwith-
standing section 4(k)(6)(B) of the Bank Holding Company Act
of 1956 (12 U.S.C. 1843(k)(6)(B)), a bank holding company
with total consolidated assets equal to or greater than
$50,000,000,000 or a nonbank financial company supervised
by the Board of Governors shall not acquire direct or indirect
ownership or control of any voting shares of any company
(other than an insured depository institution) that is engaged
in activities described in section 4(k) of the Bank Holding
Company Act of 1956 having total consolidated assets of
$10,000,000,000 or more, without providing written notice to
the Board of Governors in advance of the transaction.
(2) EXEMPTIONS.—The prior notice requirement in para-
graph (1) shall not apply with regard to the acquisition of
shares that would qualify for the exemptions in section 4(c)
or section 4(k)(4)(E) of the Bank Holding Company Act of
1956 (12 U.S.C. 1843(c) and (k)(4)(E)).
Applicability. (3) NOTICE PROCEDURES.—The notice procedures set forth
in section 4(j)(1) of the Bank Holding Company Act of 1956
(12 U.S.C. 1843(j)(1)), without regard to section 4(j)(3) of that

LAWS Act, shall apply to an acquisition of any company (other than an insured depository institution) by a bank holding company with total consolidated assets equal to or greater thanPUBLIC with on anorris VerDate Nov 24 2008 00:54 Jul 29, 2010 Jkt 089139 PO 00203 Frm 00048 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL203.111 GPO1 PsN: PUBL203