Financial Services Competitive Enhancement Act

[AI summary unavailable — showing source text] Financial Services Competitive Enhancement Act - Amends the Bank Holding Company Act of 1956 to allow bank holding companies to own shares of certain "qualified securities affiliates." Defines a "qualified securities affiliate" to mean any company which: (1) is a broker or dealer under the Securities Exchange Act of 1934; and (2) engages only in activities permitted by this Act. Allows any qualified securities affiliate to: (1) buy, sell, deal in, or underwrite asset-backed securities, municipal securities, and securities in which a national bank may deal or underwrite; (2) buy, sell, underwrite, deal in, or distribute commercial paper and long-term corporate debt; and (3) organize, sponsor, operate, or control any investment company. Directs the Board of Governors of the Federal Reserve System to disapprove the acquisition of a qualified securities affiliate by a bank holding company if the acquisition would result in the affiliation of a large bank or bank holding company (one having assets of more than $30,000,000,000) with a large investment banking organization (one having assets of more than $15,000,000,000). Establishes criteria for bank holding company funding of qualified …