§1831o–1 Source of Strength

Summary

Bank holding companies must act as a source of financial strength for any bank or savings institution they own. If a bank is not owned by a holding company, then whatever company controls the bank must act as that source of strength. "Source of financial strength" means the ability of the owner or controller to provide money or other help if the bank gets into financial trouble. The federal agency that oversees the bank can make the owner or controller give sworn reports to check and enforce this duty. The same rules in section 1844(g) apply when the owner or controller is an insurance company, and making an insurance company serve as a source of strength is treated as an action under section 1844(g). The agencies must issue final joint rules to carry out these requirements not later than 1 year after the "transfer date" (see section 5411).