; (2) to protect taxpayers and reduce moral hazard by removing explicit and implicit government guarantees for high-risk activities outside of the core business of banking; and (3) to eliminate any conflict of interest that arises from banks engaging in activities from which their profits are earned at the expense of their customers or clients. 3. Definitions In this Act— (1) the term bank holding company has the meaning given the term in section 2 of the Bank Holding Company Act of 1956 ( 12 U.S.C. 1841 ); and (2) the terms insurance company , insured depository institution , securities entity , and swaps entity have the meanings given those terms in section 18(s)(6)(D) of the Federal Deposit Insurance Act, as added by section 4(a) of this Act. 4. Safe and sound banking (a) Insured depository institutions Section 18(s) of the Federal Deposit Insurance Act ( 12 U.S.C. 1828(s) ) is amended by adding at the end the following: (6) Limitations on banking affiliations (A) Prohibition on affiliations with nondepository entities An insured depository institution may not— (i) be or become an affiliate of any insurance company, securities entity, or swaps entity; (ii) be in common ownership or control with any insurance company, securities entity, or swaps entity