[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1838 Reported in House (RH)]

                                                 Union Calendar No. 508
112th CONGRESS
  2d Session
                                H. R. 1838

                      [Report No. 112-476, Part I]

To repeal a provision of the Dodd-Frank Wall Street Reform and Consumer 
   Protection Act prohibiting any Federal bailout of swap dealers or 
                             participants.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 11, 2011

 Ms. Hayworth introduced the following bill; which was referred to the 
 Committee on Financial Services, and in addition to the Committee on 
Agriculture, for a period to be subsequently determined by the Speaker, 
 in each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

                              May 11, 2012

   Reported from the Committee on Financial Services with amendments
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

                              May 11, 2012

 Referral to the Committee on Agriculture extended for a period ending 
                      not later than May 30, 2012

                              May 30, 2012

 Referral to the Committee on Agriculture extended for a period ending 
                      not later than July 16, 2012

                              July 16, 2012

 Referral to the Committee on Agriculture extended for a period ending 
                   not later than September 14, 2012

                           September 14, 2012

 Referral to the Committee on Agriculture extended for a period ending 
                    not later than November 16, 2012

                           November 16, 2012

The Committee on Agriculture discharged; committed to the Committee of 
  the Whole House on the State of the Union and ordered to be printed

_______________________________________________________________________

                                 A BILL


 
To repeal a provision of the Dodd-Frank Wall Street Reform and Consumer 
   Protection Act prohibiting any Federal bailout of swap dealers or 
                             participants.


 


    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

<DELETED>SECTION 1. REPEAL.</DELETED>

<DELETED>    Section 716 of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act (15 U.S.C. 8305) is repealed.</DELETED>

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Swaps Bailout Prevention Act''.

SEC. 2. REFORM OF PROHIBITION ON SWAP ACTIVITY ASSISTANCE.

    Section 716 of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act (15 U.S.C. 8305) is amended--
            (1) in subsection (b), by adding at the end the following:
            ``(3) Covered depository institution.--The term `covered 
        depository institution' means--
                    ``(A) an insured depository institution; and
                    ``(B) a United States uninsured branch or agency of 
                a foreign bank that has a prudential regulator.'';
            (2) in subsection (c)--
                    (A) in the heading for such subsection, by striking 
                ``insured'' and inserting ``covered'';
                    (B) by striking ``an insured'' and inserting ``a 
                covered'';
                    (C) by striking ``such insured'' and inserting 
                ``such covered''; and
                    (D) by striking ``or savings and loan holding 
                company'' and inserting ``savings and loan holding 
                company, or foreign banking organization (as such term 
                is defined under Regulation K (12 C.F.R. 211.21(o)))'';
            (3) by amending subsection (d) to read as follows:
    ``(d) Only Bona Fide Hedging and Traditional Bank Activities 
Permitted.--
            ``(1) In general.--The prohibition in subsection (a) shall 
        not apply to any covered depository institution that limits its 
        swap and security-based swap activities to the following:
                    ``(A) Hedging and other similar risk mitigation 
                activities.--Hedging and other similar risk mitigating 
                activities directly related to the covered depository 
                institution's activities.
                    ``(B) Non-structured finance swap activities.--
                Acting as a swaps entity for swaps or security-based 
                swaps other than a structured finance swap.
                    ``(C) Certain structured finance swap activities.--
                Acting as a swaps entity for swaps or security-based 
                swaps that are structured finance swaps, if--
                            ``(i) such structured finance swaps are 
                        undertaken for hedging or risk management 
                        purposes; or
                            ``(ii) each asset-backed security 
                        underlying such structured finance swaps is of 
                        a credit quality and of a type or category with 
                        respect to which the prudential regulators have 
                        jointly adopted rules authorizing swap or 
                        security-based swap activity by covered 
                        depository institutions.
            ``(2) Definitions.--For purposes of this subsection:
                    ``(A) Structured finance swap.--The term 
                `structured finance swap' means a swap or security-
                based swap based on an asset-backed security (or group 
                or index primarily comprised of asset-backed 
                securities).
                    ``(B) Asset-backed security.--The term `asset-
                backed security' has the meaning given such term under 
                section 3(a) of the Securities Exchange Act of 1934 (15 
                U.S.C. 78c(a)).'';
            (4) in subsection (e), by striking ``an insured'' and 
        inserting ``a covered'';
            (5) in subsection (f)--
                    (A) by striking ``an insured'' and inserting ``a 
                covered''; and
                    (B) by striking ``the insured'' each place such 
                term appears and inserting ``the covered'';
            (6) in subsection (g), by striking ``insured'' and 
        inserting ``covered'';
            (7) in subsection (m), by striking ``An insured'' and 
        inserting ``A covered''; and
            (8) by adding at the end the following:
    ``(n) Foreign Swap Activity.--
            ``(1) In general.--This section shall not apply to swap or 
        security-based swap activity conducted outside the United 
        States with a non-U.S. counterparty by a non-U.S. swaps entity.
            ``(2) Definitions.--For purposes of this subsection, the 
        terms `non-U.S. swaps entity' and `non-U.S. counterparty' mean 
        a swaps entity or counterparty, respectively, that is licensed, 
        in the case of a foreign branch of a United States depository 
        institution, or organized under the laws of a jurisdiction 
        outside the United States.''.
            Amend the title so as to read: ``A bill to amend provisions 
        in section 716 of the Dodd-Frank Wall Street Reform and 
        Consumer Protection Act relating to Federal assistance for 
        swaps entities.''.
                                                 Union Calendar No. 508

112th CONGRESS

  2d Session

                               H. R. 1838

                      [Report No. 112-476, Part I]

_______________________________________________________________________

                                 A BILL

To repeal a provision of the Dodd-Frank Wall Street Reform and Consumer 
   Protection Act prohibiting any Federal bailout of swap dealers or 
                             participants.

_______________________________________________________________________

                           November 16, 2012

The Committee on Agriculture discharged; committed to the Committee of 
  the Whole House on the State of the Union and ordered to be printed