[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6390 Introduced in House (IH)]
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114th CONGRESS
2d Session
H. R. 6390
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
November 18, 2016
Mr. Luetkemeyer introduced the following bill; which was referred to
the Committee on Financial Services
_______________________________________________________________________
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 2016''.
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.
SEC. 6. EXISTING ASSESSMENT TERMINATION SCHEDULE.
(a) Temporary Extension of Existing Assessment.--
(1) In general.--Each bank holding company with total
consolidated assets equal to or greater than $50,000,000,000
and which has not been the subject of a final determination
under section 113 of the Dodd-Frank Wall Street Reform and
Consumer Protection Act (12 U.S.C. 5323) shall be subject to
assessments to the same extent as a bank holding company that
has been subject to such a final determination.
(2) Limitation on amount of assessments.--The aggregate
amount collected pursuant to paragraph (1) from all bank
holding companies assessed under such paragraph shall be
$115,000,000.
(3) Expedited assessments.--If necessary, the Secretary of
the Treasury shall expedite assessments made pursuant to
paragraph (1) to ensure that all $115,000,000 of assessments
permitted by paragraph (2) is collected before fiscal year
2018.
(4) Payment period options.--The Secretary of the Treasury
shall offer the option of payments spread out before the end of
fiscal year 2018, or shorter periods including the option of a
one-time payment, at the discretion of each bank holding
company paying assessments pursuant to paragraph (1).
(b) Use of Assessments.--Of the total amount collected pursuant to
subsection (a)--
(1) $60,000,000 shall be transferred to the Financial
Stability Oversight Council to pay for any administrative costs
resulting from this Act and the amendments made by this Act;
and
(2) $55,000,000 shall be transferred to the Federal Deposit
Insurance Corporation to pay for any resolution costs resulting
from this Act and the amendments made by this Act.
(c) Treatment Upon Determination.--A bank holding company assessed
under this section shall no longer be subject to such assessments in
the event it is subject to a final determination under section 113 of
the Dodd-Frank Wall Street Reform and Consumer Protection Act (12
U.S.C. 5323). Any prior payments made by such a banking holding company
pursuant to an assessment under this section shall be nonrefundable.
(d) Rule of Construction.--A bank holding company deemed to have
been the subject of a final determination under section 113 of the
Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C.
5323) under section 5(b) shall not be subject to assessments under
subsection (a) solely by operation of section 5(b).
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