((a)) ** In general** An insured State bank may control or hold an interest in a subsidiary that engages in activities as principal that would only be permissible for a national bank to conduct through a financial subsidiary if—
((1)) the State bank and each insured depository institution affiliate of the State bank are well capitalized (after the capital deduction required by paragraph (2));
((2)) the State bank complies with the capital deduction and financial statement disclosure requirements in ;
((3)) the State bank complies with the financial and operational safeguards required by ; and
((4)) the State bank complies with the amendments to sections 23A and 23B of the Federal Reserve Act [ and 371c–1] made by section 121(b) of the Gramm-Leach-Bliley Act.
((b)) ** Preservation of existing subsidiaries** Notwithstanding subsection (a), an insured State bank may retain control of a subsidiary, or retain an interest in a subsidiary, that the State bank lawfully controlled or acquired before , and conduct through such subsidiary any activities lawfully conducted in such subsidiary as of such date.November 12, 19991999-11-12
((c)) ** Definitions** For purposes of this section, the following definitions shall apply:
((1)) ** Subsidiary** The term “subsidiary” means any company that is a subsidiary (as defined in ) of 1 or more insured banks.section 1813(w)(4) of this title
((2)) ** Financial subsidiary** The term “financial subsidiary” has the meaning given the term in .section 24a(g) of this title
((d)) ** Preservation of authority**
((1)) ** This chapter** No provision of this section shall be construed as superseding the authority of the Federal Deposit Insurance Corporation to review subsidiary activities under .section 1831a of this title
((2)) ** Federal Reserve Act** No provision of this section shall be construed as affecting the applicability of the 20th undesignated paragraph of section 9 of the Federal Reserve Act [].12 U.S.C. 335