OLR Bill Analysis
AN ACT CONCERNING THE COMMISSIONER OF BANKING AND DEPARTMENT OF BANKING EMPLOYEES
This bill bars the banking commissioner from being employed by, or being an officer or director of a holding company with, a capital stock Connecticut bank as a wholly owned subsidiary. He is already prohibited from holding these positions at several other types of financial institutions. But the bill allows him to have an indirect financial interest in: (1) a federal bank, (2) a federal credit union, (3) an out-of-state bank, (4) an out-of-state credit union, (5) a holding company with a capital stock Connecticut bank as a wholly-owned subsidiary, or (6) any person or entity subject to the commissioner's general supervision, as long as he does not control the securities in his portfolio that give rise to his ownership or beneficial interest. Under the bill, the commissioner's spouse and resident dependent children's interests are considered the same as the commissioner's interest.
The law already subjects the commissioner's staff to the same restrictions as the commissioner regarding relationships and transactions with financial institutions. The bill adds holding companies with capital stock Connecticut banks as wholly owned subsidiaries to the list of restricted institutions that apply to the staff.
The bill also makes minor technical changes.
EFFECTIVE DATE: Upon passage
COMMITTEE ACTION
Banks Committee
Joint Favorable Substitute
Yea |
19 |
Nay |
0 |