[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1309 Reported in House (RH)]
<DOC>
Union Calendar No. 584
114th CONGRESS
2d Session
H. R. 1309
[Report No. 114-752]
To amend the Dodd-Frank Wall Street Reform and Consumer Protection Act
to specify when bank holding companies may be subject to certain
enhanced supervision, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 4, 2015
Mr. Luetkemeyer (for himself, Mr. Stivers, Mr. Williams, Mr. Murphy of
Florida, Ms. Sewell of Alabama, Mr. David Scott of Georgia, and Ms.
Sinema) introduced the following bill; which was referred to the
Committee on Financial Services
September 19, 2016
Additional sponsors: Mr. Hill, Mr. Schweikert, Mrs. Roby, Mr.
Farenthold, Mr. Fincher, Mr. Posey, Mr. Sessions, Mrs. Love, Mr. Byrne,
Mr. Huizenga of Michigan, Mr. Mulvaney, Mr. Brooks of Alabama, Mr. Poe
of Texas, Mr. Smith of Texas, Mr. Tipton, Mr. Olson, Mr. Barr, Mr.
Pittenger, Mr. Curbelo of Florida, Mr. Messer, Mr. Abraham, Mr.
Buchanan, Mr. Richmond, Mr. Harper, Mr. Vela, Mr. Hastings, Mr. Rogers
of Alabama, Mr. Dold, Mr. Hurt of Virginia, Mr. Babin, Ms. Graham, Ms.
Meng, Mr. King of New York, Mr. Webster of Florida, Mr. Poliquin, Mr.
Fleischmann, Mr. Ross, Mr. Westmoreland, Mr. Carter of Georgia, Mrs.
Beatty, Mr. Cleaver, Mrs. Black, Mrs. Wagner, Ms. Wilson of Florida,
Mr. Blum, Mr. Pearce, Mr. Crawford, Mr. Roe of Tennessee, Mr. Peters,
Mr. Hultgren, Mr. Jolly, Ms. Granger, Mr. Marchant, Mr. Nugent, Mr.
Yoho, Mr. Bucshon, Mr. Forbes, Mr. Ratcliffe, Mr. Allen, Mr. Sam
Johnson of Texas, Ms. Frankel of Florida, Mr. Lance, Mr. Stutzman, Mr.
Flores, Mr. Stewart, Mr. Veasey, Mr. Chaffetz, Mr. Carter of Texas, Mr.
Higgins, Mr. Womack, Mr. Bishop of Utah, Ms. Jenkins of Kansas, Mr.
Miller of Florida, Mr. Royce, Mr. Griffith, Mr. Brady of Texas, Mr.
Lucas, Mr. DesJarlais, Mr. Young of Iowa, Mrs. Blackburn, Mr. Rothfus,
Mr. Smith of Missouri, Mr. Neugebauer, Mrs. Hartzler, Ms. Jackson Lee,
Ms. Ros-Lehtinen, Mr. Ashford, Mr. Sherman, Mr. Gene Green of Texas,
Mr. Long, Mr. Rooney of Florida, Mr. Jody B. Hice of Georgia, Mr.
Fitzpatrick, Mr. Latta, Mr. Graves of Georgia, Mr. McHenry, Mr.
Aderholt, Mr. Emmer of Minnesota, Mr. Wenstrup, Mr. Paulsen, Mr. Graves
of Missouri, Mr. Chabot, Mr. Austin Scott of Georgia, Mr. Collins of
Georgia, Mr. Thornberry, Mr. Rokita, Mr. Crenshaw, Mr. Roskam, Mr.
Hanna, Mr. Wittman, Mr. Coffman, Mr. Kinzinger of Illinois, Mr. Brat,
Mr. Bishop of Michigan, Mr. MacArthur, Mr. Shuster, Mr. Katko, Mr.
Turner, Mr. Franks of Arizona, Mr. Renacci, Mr. Duffy, Mr. Culberson,
Mr. Gosar, Mr. Loudermilk, Mr. Walberg, Mr. Amodei, Mr. Westerman, Mr.
Simpson, and Mr. Cramer
September 19, 2016
Committed to the Committee of the Whole House on the State of the Union
and ordered to be printed
_______________________________________________________________________
A BILL
To amend the Dodd-Frank Wall Street Reform and Consumer Protection Act
to specify when bank holding companies may be subject to certain
enhanced supervision, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Systemic Risk Designation
Improvement Act of 2015''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for the Dodd-Frank Wall Street Reform and
Consumer Protection Act (12 U.S.C. 5301 et seq.) is amended by striking
the item relating to section 113 and inserting the following:
``Sec. 113. Authority to require enhanced supervision and regulation of
certain nonbank financial companies and
certain bank holding companies.''.
SEC. 3. REVISIONS TO COUNCIL AUTHORITY.
(a) Purposes and Duties.--Section 112 of the Dodd-Frank Wall Street
Reform and Consumer Protection Act (12 U.S.C. 5322) is amended in
subsection (a)(2)(I) by inserting before the semicolon ``, which have
been the subject of a final determination under section 113''.
(b) Bank Holding Company Designation.--Section 113 of the Dodd-
Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 5323)
is amended--
(1) by amending the heading for such section to read as
follows: ``authority to require enhanced supervision and
regulation of certain nonbank financial companies and certain
bank holding companies'';
(2) by redesignating subsections (c), (d), (e), (f), (g),
(h), and (i) as subsections (d), (e), (f), (g), (h), (i), and
(j), respectively;
(3) by inserting after subsection (b) the following:
``(c) Bank Holding Companies Subject to Enhanced Supervision and
Prudential Standards Under Section 165.--
``(1) Determination.--The Council, on a nondelegable basis
and by a vote of not fewer than \2/3\ of the voting members
then serving, including an affirmative vote by the Chairperson,
may determine that a bank holding company shall be subject to
enhanced supervision and prudential standards by the Board of
Governors, in accordance with section 165, if the Council
determines, based on the considerations in paragraph (2), that
material financial distress at the bank holding company, or the
nature, scope, size, scale, concentration, interconnectedness,
or mix of the activities of the bank holding company, could
pose a threat to the financial stability of the United States.
``(2) Considerations.--In making a determination under
paragraph (1), the Council shall use the indicator-based
measurement approach established by the Basel Committee on
Banking Supervision to determine systemic importance, which
considers--
``(A) the size of the bank holding company;
``(B) the interconnectedness of the bank holding
company;
``(C) the extent of readily available substitutes
or financial institution infrastructure for the
services of the bank holding company;
``(D) the global cross-jurisdictional activity of
the bank holding company; and
``(E) the complexity of the bank holding company.
``(3) GSIBs designated by operation of law.--
Notwithstanding any other provision of this subsection, a bank
holding company that is designated, as of the date of enactment
of this subsection, as a Global Systemically Important Bank by
the Financial Stability Board shall be deemed to have been the
subject of a final determination under paragraph (1).'';
(4) in subsection (d), as so redesignated--
(A) in paragraph (1)(A), by striking ``subsection
(a)(2) or (b)(2)'' and inserting ``subsection (a)(2),
(b)(2), or (c)(2)''; and
(B) in paragraph (4), by striking ``Subsections (d)
through (h)'' and inserting ``Subsections (e) through
(i)'';
(5) in subsections (e), (f), (g), (h), (i), and (j)--
(A) by striking ``subsections (a) and (b)'' each
place such term appears and inserting ``subsections
(a), (b), and (c)''; and
(B) by striking ``nonbank financial company'' each
place such term appears and inserting ``bank holding
company for which there has been a determination under
subsection (c) or nonbank financial company'';
(6) in subsection (g), as so redesignated, by striking
``subsection (e)'' and inserting ``subsection (f)'';
(7) in subsection (h), as so redesignated, by striking
``subsection (a), (b), or (c)'' and inserting ``subsection (a),
(b), (c), or (d)''; and
(8) in subsection (i), as so redesignated, by striking
``subsection (d)(2), (e)(3), or (f)(5)'' and inserting
``subsection (e)(2), (f)(3), or (g)(5)''.
(c) Enhanced Supervision.--Section 115 of the Dodd-Frank Wall
Street Reform and Consumer Protection Act (12 U.S.C. 5325) is amended--
(1) in subsection (a)(1), by striking ``large,
interconnected bank holding companies'' and inserting ``bank
holding companies which have been the subject of a final
determination under section 113'';
(2) in subsection (a)(2)--
(A) in subparagraph (A), by striking ``; or'' at
the end and inserting a period;
(B) by striking ``the Council may'' and all that
follows through ``differentiate'' and inserting ``the
Council may differentiate''; and
(C) by striking subparagraph (B); and
(3) in subsection (b)(3), by striking ``subsections (a) and
(b) of section 113'' each place such term appears and inserting
``subsections (a), (b), and (c) of section 113''.
(d) Reports.--Section 116(a) of the Dodd-Frank Wall Street Reform
and Consumer Protection Act (12 U.S.C. 5326(a)) is amended by striking
``with total consolidated assets of $50,000,000,000 or greater'' and
inserting ``which has been the subject of a final determination under
section 113''.
(e) Mitigation.--Section 121 of the Dodd-Frank Wall Street Reform
and Consumer Protection Act (12 U.S.C. 5331) is amended--
(1) in subsection (a), by striking ``with total
consolidated assets of $50,000,000,000 or more'' and inserting
``which has been the subject of a final determination under
section 113''; and
(2) in subsection (c), by striking ``subsection (a) or (b)
of section 113'' and inserting ``subsection (a), (b), or (c) of
section 113''.
(f) Office of Financial Research.--Section 155 of the Dodd-Frank
Wall Street Reform and Consumer Protection Act (12 U.S.C. 5345) is
amended in subsection (d) by striking ``with total consolidated assets
of 50,000,000,000 or greater'' and inserting ``which have been the
subject of a final determination under section 113''.
SEC. 4. REVISIONS TO BOARD AUTHORITY.
(a) Acquisitions.--Section 163 of the Dodd-Frank Wall Street Reform
and Consumer Protection Act (12 U.S.C. 5363) is amended by striking
``with total consolidated assets equal to or greater than
$50,000,000,000'' each place such term appears and inserting ``which
has been the subject of a final determination under section 113''.
(b) Management Interlocks.--Section 164 of the Dodd-Frank Wall
Street Reform and Consumer Protection Act (12 U.S.C. 5364) is amended
by striking ``with total consolidated assets equal to or greater than
$50,000,000,000'' and inserting ``which has been the subject of a final
determination under section 113''.
(c) Enhanced Supervision and Prudential Standards.--Section 165 of
the Dodd-Frank Wall Street Reform and Consumer Protection Act (12
U.S.C. 5365) is amended--
(1) in subsection (a), by striking ``with total
consolidated assets equal to or greater than $50,000,000,000''
and inserting ``which have been the subject of a final
determination under section 113'';
(2) in subsection (a)(2)--
(A) by striking ``(A) In general.--''; and
(B) by striking subparagraph (B);
(3) by striking ``subsections (a) and (b) of section 113''
each place such term appears and inserting ``subsections (a),
(b), and (c) of section 113''; and
(4) in subsection (j), by striking ``with total
consolidated assets equal to or greater than $50,000,000,000''
and inserting ``which has been the subject of a final
determination under section 113''.
(d) Conforming Amendment.--The second subsection (s) (relating to
``Assessments, Fees, and Other Charges for Certain Companies'') of
section 11 of the Federal Reserve Act (12 U.S.C. 248) is amended--
(1) by redesignating such subsection as subsection (t); and
(2) in paragraph (2)--
(A) in subparagraph (A), by striking ``having total
consolidated assets of $50,000,000,000 or more;'' and
inserting ``which have been the subject of a final
determination under section 113 of the Dodd-Frank Wall
Street Reform and Consumer Protection Act; and'';
(B) by striking subparagraph (B); and
(C) by redesignating subparagraph (C) as
subparagraph (B).
SEC. 5. EFFECTIVE DATE; RULE OF APPLICATION.
(a) Effective Date.--The Financial Stability Oversight Council may
begin proceedings with respect to a bank holding company under section
113(c)(1) of the Dodd-Frank Wall Street Reform and Consumer Protection
Act, as added by this Act, on the date of the enactment of this Act,
but may not make a final determination under such section 113(c)(1)
with respect to a bank holding company before the end of the 1-year
period beginning on the date of the enactment of this Act.
(b) Immediate Application to Large Bank Holding Companies.--During
the 1-year period described under subsection (a), a bank holding
company with total consolidated assets equal to or greater than
$50,000,000,000 shall be deemed to have been the subject of a final
determination under section 113(c)(1) of the Dodd-Frank Wall Street
Reform and Consumer Protection Act.
Union Calendar No. 584
114th CONGRESS
2d Session
H. R. 1309
[Report No. 114-752]
_______________________________________________________________________
A BILL
To amend the Dodd-Frank Wall Street Reform and Consumer Protection Act
to specify when bank holding companies may be subject to certain
enhanced supervision, and for other purposes.
_______________________________________________________________________
September 19, 2016
Committed to the Committee of the Whole House on the State of the Union
and ordered to be printed