Financial Services Modernization Act

[AI summary unavailable — showing source text] Financial Services Modernization Act - Title I: Financial Services Modernization - Subtitle A: Affiliations - Amends the Banking Act of 1933 (Glass-Steagall Act) to repeal the prohibitions against: (1) affiliation of any Federal Reserve member bank with an entity engaged principally in securities activities (securities affiliate); and (2) simultaneous service by any officer, director, or employee of a securities firm as an officer, director, or employee of any member bank (interlocking directorates). (Sec. 102) Amends the Bank Holding Company Act of 1956 (BHCA) to permit a bank holding company (BHC) to engage in any activity which the Board of Governors of the Federal Reserve Bank (the Board) and the Secretary of the Treasury (the Secretary) have jointly determined to be either financial in nature, or incidental to such financial activities. Delineates the factors to be considered in such determination. Enumerates activities deemed financial in nature. Prescribes acquisition guidelines for bank holding companies. Exempts from BHCA proscriptions against interests in nonbanking organizations the shares of any company whose activities had been determined by the Board as of the day bef…