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Increase the supply of housing in America › Section 906

Advancing the Mentor-Protege Program for Small Financial Institutions

Section 906 · Sec. 906 ·

What this chapter is about

This part sets up a program pairing large banks with small ones. The large one acts as a mentor to the small one. The aim is to help the small one serve as a financial agent or serve its customers better. Outreach events must be held once a year and a report goes to Congress.

4 proposals indexed from this chapter.

A Financial Agent Mentor-Protege Program must be established

The document says “shall”Who acts: Secretary of the TreasuryHow: statuteSec. 906 in the PDF
What the document says

“The Secretary shall establish a program to be known as the `Financial Agent Mentor-Protege Program' (in this subsection referred to as the `Program') under which a financial agent designated by the Secretary or a large financial institution may serve as a mentor, under guidance or regulations prescribed by the Secretary, to a small financial institution”

To increase the supply of housing in America, and for other purposes, Sec. 906

The section adds a new subsection (d) to section 308 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 requiring the Secretary of the Treasury to establish a Financial Agent Mentor-Protege Program under which a designated financial agent or a large financial institution may mentor a small financial institution, so that the small institution can be ready to serve as a financial agent or can improve its capacity to serve its customers.

What the document actually says

“The Secretary shall establish a program to be known as the `Financial Agent Mentor-Protege Program' (in this subsection referred to as the `Program') under which a financial agent designated by the Secretary or a large financial institution may serve as a mentor, under guidance or regulations prescribed by the Secretary, to a small financial institution”

To increase the supply of housing in America, and for other purposes, Sec. 906
That sentence, in plain words

The Treasury must set up a program. Under it a large bank may mentor a small one. The Treasury writes the rules for how that works.

What this is about

A financial agent is a bank the Treasury uses to do its work. Small banks may not know how. Mentoring is meant to close that gap.

No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.

Outreach events must be held yearly and an exclusion process set up

The document says “shall”Who acts: Secretary of the TreasuryHow: statuteSec. 906 in the PDF
What the document says

“The Secretary shall hold outreach events to promote the participation of financial agents, large financial institutions, and small financial institutions in the Program at least once a year.”

To increase the supply of housing in America, and for other purposes, Sec. 906

The new subsection requires the Secretary of the Treasury to hold outreach events at least once a year promoting participation in the program, and to issue guidance or regulations setting up a process by which a financial agent, large institution, or small institution may be excluded from it.

What the document actually says

“The Secretary shall hold outreach events to promote the participation of financial agents, large financial institutions, and small financial institutions in the Program at least once a year.”

To increase the supply of housing in America, and for other purposes, Sec. 906
That sentence, in plain words

The Treasury must hold outreach events. It must do so at least once a year. The point is to get banks of all sizes to take part.

What this is about

The Treasury must also set a way to shut a body out. That comes through guidance or a rule. Any of the three kinds of bank can be excluded.

No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.

A report to Congress on participation and events is required

The document says “shall”Who acts: Secretary of the TreasuryHow: statuteSec. 906 in the PDF
What the document says

“``(A) the number of financial agents, large financial institutions, and small financial institutions participating in such Program; and ``(B) the number of outreach events described in paragraph (2) held during the year covered by such report.”

To increase the supply of housing in America, and for other purposes, Sec. 906

The new subsection requires the Secretary of the Treasury to report to Congress on the program, including how many financial agents, large institutions, and small institutions take part, and how many outreach events were held in the year the report covers.

What the document actually says

“``(A) the number of financial agents, large financial institutions, and small financial institutions participating in such Program; and ``(B) the number of outreach events described in paragraph (2) held during the year covered by such report.”

To increase the supply of housing in America, and for other purposes, Sec. 906
That sentence, in plain words

The report must give the number of banks taking part. It must count each kind. It must also count the outreach events held that year.

What this is about

The report is how Congress checks on the program. Two counts are required. Both are simple numbers.

No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.

Large and small financial institutions are defined by asset size

The document says “means”Who acts: CongressHow: statuteSec. 906 in the PDF
What the document says

“The term `large financial institution' means any entity regulated by the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, or the National Credit Union Administration that has total consolidated assets greater than or equal to $50,000,000,000.”

To increase the supply of housing in America, and for other purposes, Sec. 906

The new subsection defines a large financial institution as one regulated by the Comptroller of the Currency, the Federal Reserve Board, the Federal Deposit Insurance Corporation, or the National Credit Union Administration with total consolidated assets of at least $50,000,000,000. A small financial institution is one of the same regulated bodies with assets of no more than $2,000,000,000, a minority depository institution, or a rural depository institution, which is a depository institution with assets under $10,000,000,000 in a rural area. A financial agent is a national banking association the Secretary designates to serve as a financial agent of the government.

What the document actually says

“The term `large financial institution' means any entity regulated by the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, or the National Credit Union Administration that has total consolidated assets greater than or equal to $50,000,000,000.”

To increase the supply of housing in America, and for other purposes, Sec. 906
That sentence, in plain words

A large bank is one that four federal bodies watch over. It must hold at least fifty billion dollars.

What this is about

A small one is defined by the same four regulators. It holds two billion dollars or less. Minority and rural banks also count as small.

No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.

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What This Page Covers, and What It Leaves Out

Each distinct thing the new subsection (d) does: the Financial Agent Mentor-Protege Program, the yearly outreach events, the exclusion process, the report to Congress, and the definitions of a financial agent, a large financial institution, a rural depository institution, and a small financial institution.

Nothing the new subsection does is left out.

The section works by adding a subsection to section 308 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, which is not indexed here, so nothing is recorded about the rest of that section.