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WASHINGTON – In remarks on the Senate floor today, U.S. Senator Bob Corker (R-Tenn.), a senior member of the Senate Banking Committee, offered a technical correction amendment to S.2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act. The amendment would clarify that section 402 applies only when the primary focus of a banking organization is on custodial activities. A full transcript of the senator’s remarks follows.

“Today I rise to offer an amendment to S.2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act, of which I am a cosponsor.

“My amendment is a simple technical correction that would clarify the intent of the original bill as it relates to custodial banks.

“As originally introduced, section 402 was intended to provide better-tailored capital requirements for true custodial banks.

“However, there have been concerns raised that the current definition in this section – following revisions during committee consideration – could open up this provision to a wider group of financial institutions.

“I know that was not the intent of my colleagues, and this technical correction amendment makes clear that section 402 applies only when the primary focus of the banking organization is custodial activities.

“Section 402 is not intended to provide relief to an organization engaged in consumer banking, investment banking, or other businesses, and that also happens to have some custodial business – or a banking subsidiary that engages in custodial activities. 

“In conclusion, section 402 was intended as a very narrowly tailored provision focused on true custodial banks.

“My technical correction amendment would clarify the scope of section 402. 

“I am requesting a vote and urge my colleagues to support adoption of this amendment.”

Text of the amendment is available here.