Version	Word Count	Changes From Previous Version	Percent Change
Introduced in House	223,783	n/a	n/a
Engrossed in House	301,214	2,502	43%
Referred in Senate	299,585	8	0%
Engrossed Amendment Senate	283,985	9,370 Show Changes Hide Changes	90%
Enrolled Bill	383,013	4,478	50%

Display Version Introduced in House Engrossed in House Referred in Senate Engrossed Amendment Senate Enrolled Bill

Most commented sections:

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• Paragraph 635 (1 comments)

HR 4173 RFS

111th CONGRESS

2d Session

H. R. 4173

IN THE SENATE OF THE UNITED STATES

JanuarEASCommentsClose CommentsPermalink

May 20, 2010

Received; read twice and referred to the Committee on Banking, Housing, and Urban Affairs

---

AN ACT

T.CommentsClose CommentsPermalink

CommentsClose CommentsPermalink

Resolved, That the bill from the House of Representatives (H.R. 4173) entitled ‘An Act to provide for financial regulatory reform, to protect consumers and investors, to enhance Federal understanding of insurance issues, to regulate the over-the-counter derivatives markets, and for other purposes.

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

’, do pass with the followingCommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Wall Street Reform and Consumer Protection Act of 2009’.

SEC. 2.; TABLE OF CONTENTS.

(a) Short Title- This Act may be cited as the ‘Restoring American Financial Stability Act of 2010’. CommentsClose CommentsPermalink





(b) Table of Contents- The table of contents for this Act is as follows: CommentsClose CommentsPermalink





Sec. 1. Short title.Sec. 2. T; table of contents. CommentsClose CommentsPermalink





Sec. 2. Definitions. CommentsClose CommentsPermalink





Sec. 3. Severability. CommentsClose CommentsPermalink





Sec. 4. Effective date. CommentsClose CommentsPermalink

TITLE I--FINANCIAL STABILITY

IMPROVEMENT ACTSec. 1000. Short title; definitionsSec. 101. Short title. CommentsClose CommentsPermalink





Sec. 1000A. Restrictions on the Federal Reserve System pending audit report2. Definitions. CommentsClose CommentsPermalink

Subtitle A--The Financial Services OversightFinancial Stability Oversight Council

Sec. 1001. Financial Services11. Financial Stability Oversight Council established. CommentsClose CommentsPermalink





Sec. 1002. Resolution of disputes among Federal financial regulatory agencies.Sec. 1003. Technical and professional advisory committees12. Council authority. CommentsClose CommentsPermalink





Sec. 1004. Financial Services Oversight Council meetings and council governance13. Authority to require supervision and regulation of certain nonbank financial companies. CommentsClose CommentsPermalink





Sec. 1005. Council staff and funding14. Registration of nonbank financial companies supervised by the Board of Governors. CommentsClose CommentsPermalink





Sec. 1006. Reports to the Congres15. Enhanced supervision and prudential standards for nonbank financial companies supervised by the Board of Governors and certain bank holding companies. CommentsClose CommentsPermalink





Sec. 116. Reports. CommentsClose CommentsPermalink





Sec. 1007. Applicability of certain Federal law17. Treatment of certain companies that cease to be bank holding companies. CommentsClose CommentsPermalink





Sec. 1008. Oversight by GAO.Subtitle B--Prudential Regulation of Companies and Activities for Financial Stability Purposes

Sec. 1100. Federal Reserve Board authority that of agent acting on behalf of Council.

Sec. 1101. Council and Board authority to obtain information18. Council funding. CommentsClose CommentsPermalink




Sec. 1102. Council prudential regulation recommendations to Federal financial regulatory agencies; agency authority9. Resolution of supervisory jurisdictional disputes among member agencies. CommentsClose CommentsPermalink





Sec. 1103. Subjecting financial companies to stricter prudential standard20. Additional standards applicable to activities or practices for financial stability purposes. CommentsClose CommentsPermalink





Sec. 1104. Stricter prudential standards for certain financial holding companies for financial stability purpose21. Mitigation of risks to financial stability. CommentsClose CommentsPermalink

Sec. 151. Definitions. CommentsClose CommentsPermalink





Sec. 1105. Mitigation of systemic risk.Sec. 1106. Subjecting activities or practices to stricter prudential standards for financial stability purposes52. Office of Financial Research established. CommentsClose CommentsPermalink





Sec. 1107. Stricter regulation of activities and practices for financial stability purposes53. Purpose and duties of the Office. CommentsClose CommentsPermalink





Sec. 1108. Effect of rescission of identification54. Organizational structure; responsibilities of primary programmatic units. CommentsClose CommentsPermalink





Sec. 1109. Emergency financial stabilization55. Funding. CommentsClose CommentsPermalink





Sec. 1110. Additional related amendments.Sec. 1111. Corporation may receive warrants when paying or risking taxpayer fund56. Transition oversight. CommentsClose CommentsPermalink

Sec. 161. Reports by and examinations of nonbank financial companies supervised by the Board of Governors. CommentsClose CommentsPermalink





Sec. 1112. Examinations and enforcement actions for insurance and resolutions purposes62. Enforcement. CommentsClose CommentsPermalink





Sec. 1113. Study of the effects of size and complexity of financial institutions on capital market efficiency and economic growth63. Acquisitions. CommentsClose CommentsPermalink





Sec. 1114. Exercise of Federal Reserve authority64. Prohibition against management interlocks between certain financial companies. CommentsClose CommentsPermalink





Sec. 165. Enhanced supervision and prudential standards for nonbank financial companies supervised by the Board of Governors and certain bank holding companies. CommentsClose CommentsPermalink





Sec. 166. Early remediation requirements. CommentsClose CommentsPermalink





Sec. 1115. Stress test67. Affiliations. CommentsClose CommentsPermalink





Sec. 1116. Contingent Capital68. Regulations. CommentsClose CommentsPermalink





Sec. 1117. Restriction on proprietary trading by designated financial holding companies.Sec. 1118. Rule of construc69. Avoiding duplication. CommentsClose CommentsPermalink





Sec. 1119. Antitrust savings clause.Subtitle C--Improvements to Supervision and Regulation of Federal Depository InstitutionsSec. 1201. Definitions70. Safe harbor. CommentsClose CommentsPermalink





Sec. 1202. Amendments to the Home Owners’ Loan Act relating to transfer of functions.Sec. 1203. Amendments to the revised statute71. Leverage and risk-based capital requirements. CommentsClose CommentsPermalink

Sec. 201. Definitions. CommentsClose CommentsPermalink





Sec. 1204. Power and duties transferred202. Judicial review. CommentsClose CommentsPermalink





Sec. 203. Systemic risk determination. CommentsClose CommentsPermalink





Sec. 1205. Transfer date204. Orderly liquidation. CommentsClose CommentsPermalink





Sec. 1206. Expiration of term of comptroller205. Orderly liquidation of covered brokers and dealers. CommentsClose CommentsPermalink





Sec. 1207. Office of Thrift Supervision abolished206. Mandatory terms and conditions for all orderly liquidation actions. CommentsClose CommentsPermalink





Sec. 1208. Savings provisions207. Directors not liable for acquiescing in appointment of receiver. CommentsClose CommentsPermalink





Sec. 1209. Regulations and orders208. Dismissal and exclusion of other actions. CommentsClose CommentsPermalink





Sec. 209. Rulemaking; non-conflicting law. CommentsClose CommentsPermalink





Sec. 1210. Coordination of transition activities210. Powers and duties of the corporation. CommentsClose CommentsPermalink





Sec. 1211. Interim responsibilities of office of the comptroller of the currency and office of thrift supervision211. Miscellaneous provisions. CommentsClose CommentsPermalink





Sec. 1212. Employees transferred212. Prohibition of circumvention and prevention of conflicts of interest. CommentsClose CommentsPermalink





Sec. 1213. Property transferred213. Ban on senior executives and directors. CommentsClose CommentsPermalink





Sec. 1214. Funds transferred214. Prohibition on taxpayer funding. CommentsClose CommentsPermalink

Sec. 300. Short title. CommentsClose CommentsPermalink





Sec. 1215. Disposition of affair301. Purposes. CommentsClose CommentsPermalink





Sec. 1216. Continuation of services302. Definition. CommentsClose CommentsPermalink

Sec. 311. Transfer date. CommentsClose CommentsPermalink





Sec. 1217. Contracting and leasing authority312. Powers and duties transferred. CommentsClose CommentsPermalink





Sec. 313. Abolishment. CommentsClose CommentsPermalink





Sec. 1218. Treatment of savings and loan holding compani314. Amendments to the revised statutes. CommentsClose CommentsPermalink





Sec. 1219. Practices of certain mutual thrift holding companies preserved315. Federal information policy. CommentsClose CommentsPermalink





Sec. 1220. Implementation plan and reports.Sec. 1221. Composition of board of directors of the Federal Deposit Insurance Corporation316. Savings provisions. CommentsClose CommentsPermalink





Sec. 1222. Amendments to section 3317. References in Federal law to Federal banking agencies. CommentsClose CommentsPermalink





Sec. 318. Funding. CommentsClose CommentsPermalink





Sec. 1223. Amendments to section 7319. Contracting and leasing authority. CommentsClose CommentsPermalink

Sec. 321. Interim use of funds, personnel, and property of the Office of Thrift Supervision. CommentsClose CommentsPermalink





Sec. 322. Transfer of employees. CommentsClose CommentsPermalink





Sec. 1224. Amendments to section 8323. Property transferred. CommentsClose CommentsPermalink





Sec. 1225. Amendments to section 11324. Funds transferred. CommentsClose CommentsPermalink





Sec. 1226. Amendments to section 13325. Disposition of affairs. CommentsClose CommentsPermalink





Sec. 1227. Amendments to section 18326. Continuation of services. CommentsClose CommentsPermalink

Sec. 331. Deposit insurance reforms. CommentsClose CommentsPermalink





Sec. 1228. Amendments to section 28332. Management of the Federal Deposit Insurance Corporation. CommentsClose CommentsPermalink

Sec. 341. Termination of Federal savings associations. CommentsClose CommentsPermalink





Sec. 1229. Amendments to the Alternative Mortgage Transaction Parity Act of 1982342. Branching. CommentsClose CommentsPermalink

Sec. 401. Short title. CommentsClose CommentsPermalink





Sec. 1230. Amendments to the Bank Holding Company Act of 1956402. Definitions. CommentsClose CommentsPermalink





Sec. 1231. Amendments to the Bank Protection Act of 1968403. Elimination of private adviser exemption; limited exemption for foreign private advisers; limited intrastate exemption. CommentsClose CommentsPermalink





Sec. 1232. Amendments to the Bank Service Company Act404. Collection of systemic risk data; reports; examinations; disclosures. CommentsClose CommentsPermalink





Sec. 1233. Amendments to the Community Reinvestment Act of 1977405. Disclosure provision eliminated. CommentsClose CommentsPermalink





Sec. 1234. Amendments to the Depository Institution Management Interlocks Act406. Clarification of rulemaking authority. CommentsClose CommentsPermalink





Sec. 1235. Amendments to the Emergency Homeowners’ Relief Act407. Exemption of venture capital fund advisers. CommentsClose CommentsPermalink





Sec. 1236. Amendments to the Equal Credit Opportunity Act408. Exemption of and record keeping by private equity fund advisers. CommentsClose CommentsPermalink





Sec. 1237. Amendments to the Federal Credit Union Act409. Family offices. CommentsClose CommentsPermalink





Sec. 1238. Amendments to the Federal Financial Institutions Examination Council Act of 1978410. State and Federal responsibilities; asset threshold for Federal registration of investment advisers. CommentsClose CommentsPermalink





Sec. 1239. Amendments to the Federal Home Loan Bank Act411. Custody of client assets. CommentsClose CommentsPermalink





Sec. 1240. Amendments to the Federal Reserve Act412. Adjusting the accredited investor standard. CommentsClose CommentsPermalink





Sec. 1241. Amendments to the Financial Institutions Reform, Recovery, and Enforcement Act of 1989.Sec. 1242. Amendments to the Housing Act of 1948413. GAO study and report on accredited investors. CommentsClose CommentsPermalink





Sec. 1243. Amendments to the Housing and Community Development Act of 1992 and the Federal Housing Enterprises Financial Safety and Soundness Act of 1992414. GAO study on self-regulatory organization for private funds. CommentsClose CommentsPermalink





Sec. 1244. Amendment to the Housing and Urban-Rural Recovery Act of 1983415. Commission study and report on short selling. CommentsClose CommentsPermalink





Sec. 1245. Amendments to the National Housing Act416. Transition period. CommentsClose CommentsPermalink

Sec. 501. Short title. CommentsClose CommentsPermalink





Sec. 1246. Amendments to the Right to Financial Privacy Act of 1978502. Establishment of Office of National Insurance. CommentsClose CommentsPermalink

Sec. 511. Short title. CommentsClose CommentsPermalink





Sec. 1247. Amendments to the Balanced Budget and Emergency Deficit Control Act of 1985512. Effective date. CommentsClose CommentsPermalink

Sec. 521. Reporting, payment, and allocation of premium taxes. CommentsClose CommentsPermalink





Sec. 1248. Amendments to the Crime Control Act of 1990522. Regulation of nonadmitted insurance by insured’s home State. CommentsClose CommentsPermalink





Sec. 1249. Amendment to the Flood Disaster Protection Act of 1973523. Participation in national producer database. CommentsClose CommentsPermalink





Sec. 1250. Amendment to the Investment Company Act of 1940524. Uniform standards for surplus lines eligibility. CommentsClose CommentsPermalink





Sec. 1251. Amendment to the Neighborhood Reinvestment Corporation Act525. Streamlined application for commercial purchasers. CommentsClose CommentsPermalink





Sec. 1252. Amendments to the Securities Exchange Act of 1934526. GAO study of nonadmitted insurance market. CommentsClose CommentsPermalink





Sec. 527. Definitions. CommentsClose CommentsPermalink

Sec. 531. Regulation of credit for reinsurance and reinsurance agreements. CommentsClose CommentsPermalink





Sec. 1253. Amendments to title 18, United States Code532. Regulation of reinsurer solvency. CommentsClose CommentsPermalink





Sec. 1254. Amendments to title 31, United States Code533. Definitions. CommentsClose CommentsPermalink

Sec. 541. Rule of construction. CommentsClose CommentsPermalink





Sec. 1255. Requirement for Countercyclical Capital Requirements542. Severability. CommentsClose CommentsPermalink

Sec. 601. Short title. CommentsClose CommentsPermalink





Sec. 1256. Transfer of authority to the Board with respect to savings and loan holding companies602. Definition. CommentsClose CommentsPermalink





Sec. 1257. Effective date.Subtitle D--Further Improvements to the Regulation of Bank Holding Companies and Depository InstitutionsSec. 1301. Treatment of603. Moratorium and study on treatment of credit card banks, industrial loan companies, savings associations, and certain other companies under the bank holding company act.Sec. 1302. Registration of certain companies as bank holding companiesBank Holding Company Act of 1956. CommentsClose CommentsPermalink





Sec. 1303604. Reports and examinations of bank holdingholding companies; regulation of functionally regulated subsidiaries. CommentsClose CommentsPermalink





Sec. 1304605. Assuring consistent oversight of permissible activities of depository institution subsidiaries of holding companies. CommentsClose CommentsPermalink





Sec. 606. Requirements for financial holding companies to remain well capitalized and well managed. CommentsClose CommentsPermalink





Sec. 1305607. Standards for interstate acquisitions. CommentsClose CommentsPermalink





Sec. 1306608. Enhancing existing restrictions on bank transactions with affiliates. CommentsClose CommentsPermalink





Sec. 1307609. Eliminating exceptions for transactions with financial subsidiaries. CommentsClose CommentsPermalink





Sec. 1308. Lending limits applicable to credit 610. Lending limits applicable to credit exposure on derivative transactions, repurchase agreements, reverse repurchase agreements, and securities lending and borrowing transactions. CommentsClose CommentsPermalink





Sec. 1309611. Application of national bank lending limits to insured State banks. CommentsClose CommentsPermalink





Sec. 612. Restriction on conversions of troubled banks and thrifts. CommentsClose CommentsPermalink





Sec. 1310613. De novo branching into States. CommentsClose CommentsPermalink





Sec. 614. Lending limits to insiders. CommentsClose CommentsPermalink





Sec. 1311615. Limitations on purchases of assets from insiders. CommentsClose CommentsPermalink





Sec. 1312. Rules regarding capital levels of bank616. Regulations regarding capital levels of holding companies. CommentsClose CommentsPermalink





Sec. 1313. Enhancements to factors to be considered in certain acquisitions.Sec. 1314617. Elimination of elective investment bank holding company framework. CommentsClose CommentsPermalink





Sec. 1315. Examination fees for large bank holding companies.

Sec. 1316. Mutual national banks and Federal mutual bank holding companies authorized.

Sec. 1317. Nationwide Deposit Cap for Interstate Acquisitions.

Sec. 1318. De novo branching into states.

Subtitle E--Improvements to the Federal Deposit Insurance Fund

Sec. 1401. Accounting for actual risk to the Deposit Insurance Fund.

Sec. 1402. Creating a risk-focused assessment base.

Sec. 1403. Elimination of procyclical assessments.

Sec. 1404. Enhanced access to information for deposit insurance purposes.

Sec. 1405. Transition reserve ratio requirements to reflect new assessment base.

Subtitle F--Improvements to the Asset-Backed Securitization Process

Sec. 1501. Short title.

Sec. 1502. Credit risk retention.

Sec. 1503. Periodic and other reporting under the Securities Exchange Act of 1934 for asset-backed securities.

Sec. 1504. Representations and warranties in asset-backed offerings.

Sec. 1505. Exempted transactions under the Securities Act of 1933.

Sec. 1506. Study on the macroeconomic effects of risk retention requirements.

Subtitle G--Enhanced Dissolution Authority

Sec. 1601. Short title; Purpose.

Sec. 1602. Definitions.

Sec. 1603. Systemic risk determination.

Sec. 1604. Dissolution; stabilization.

Sec. 1605. Judicial review.

Sec. 1606. Directors not liable for acquiescing in appointment of receiver.

Sec. 1607. Termination and exclusion of other action618. Securities holding companies. CommentsClose CommentsPermalink




Sec. 1608. Rulemaking.

Sec. 1609. Powers and duties of corporation.

Sec. 1610. Clarification of prohibition regarding concealment of assets from receiver or liquidating agent.

Sec. 1611. Office of Dissolution.

Sec. 1612. Miscellaneous provisions.

Sec. 1613. Amendment to Federal Deposit Insurance Act.

Sec. 1614. Application of executive compensation limitations.

Sec. 1615. Study on the effect of safe harbor provisions in insolvency cases.

Sec. 1616. Treasury study.

Sec. 1617. Priority of claims in federal deposit insurance act.

Subtitle H--Additional Improvements for Financial Crisis Management

Sec. 1701. Additional improvements for financial crisis management.

Sec. 1702. Certain restrictions related to foreign currency swap authority.

Sec. 1703. Additional oversight of financial regulatory system.

Subtitle I--Miscellaneous

Sec. 1801. Inclusion of minorities and women; Diversity in agency workforce.

Sec. 1802. Federal Housing Finance Agency advisory role in FIEC.

Subtitle J--International Policy Coordination

Sec. 1901. International policy coordination.

Subtitle K--International Financial ProvisionsSec. 1951. Access to United States financial market by foreign institution619. Restrictions on capital market activity by banks and bank holding companies. CommentsClose CommentsPermalink




Sec. 1952. Reducing TARP funds to offset costs.Subtitle L--Securities Holding Companies

Sec. 1961. Securities holding companies.

TITLE II--CORPORATE AND FINANCIAL INSTITUTION COMPENSATION FAIRNESS ACT

Sec. 2001. Short title.

Sec. 2002. Shareholder vote on executive compensation disclosures.

Sec. 2003. Compensation committee independence.

Sec. 2004. Enhanced compensation structure reporting to reduce perverse incentive620. Concentration limits on large financial firms. CommentsClose CommentsPermalink

TITLE III--DERIVATIVE MARKETSVII--WALL STREET TRANSPARENCY AND ACCOUNTABILITY

ACTSec. 30Sec. 701. Short title. CommentsClose CommentsPermalink

Sec. 711. Definitions. CommentsClose CommentsPermalink





Sec. 300712. Review of regulatory authority. CommentsClose CommentsPermalink





Sec. 3003. International harmonization.

Sec. 3004. Prohibition against government assistance.

Sec. 3005. Studies.

Sec. 3006713. Recommendations for changes to insolvencyportfolio margining laws. CommentsClose CommentsPermalink




Sec. 3007714. Abusive swaps. CommentsClose CommentsPermalink





Sec. 3008715. Authority to prohibit participation in swap activities. CommentsClose CommentsPermalink





Sec. 3009. Memorandum.Subtitle A716. Prohibition against Federal Government bailouts of swaps entities. CommentsClose CommentsPermalink





Sec. 717. New product approval--CFTC-SEC process. CommentsClose CommentsPermalink





Sec. 718. Determining status of novel derivative products. CommentsClose CommentsPermalink

PART II--Regulation of Swap Markets

Sec. 310721. Definitions. CommentsClose CommentsPermalink





Sec. 310722. Jurisdiction. CommentsClose CommentsPermalink





Sec. 3103. Clearing and execution transparency723. Clearing. CommentsClose CommentsPermalink





Sec. 3104. Public reporting of aggregate swap data724. Swaps; segregation and bankruptcy treatment. CommentsClose CommentsPermalink





Sec. 3105. Swap725. Derivatives clearing organizations. CommentsClose CommentsPermalink





Sec. 726. Rulemaking on conflict of interest. CommentsClose CommentsPermalink





Sec. 727. Public reporting of swap transaction data. CommentsClose CommentsPermalink





Sec. 728. Swap data repositories. CommentsClose CommentsPermalink





Sec. 3106729. Reporting and recordkeeping. CommentsClose CommentsPermalink





Sec. 3107730. Large swap trader reporting. CommentsClose CommentsPermalink





Sec. 731. Registration and regulation of swap dealers and major swap participants. CommentsClose CommentsPermalink





Sec. 3108732. Conflicts of interest. CommentsClose CommentsPermalink





Sec. 3109733. Swap execution facilities. CommentsClose CommentsPermalink





Sec. 3110734. Derivatives transaction execution facilities and exempt boards of trade. CommentsClose CommentsPermalink





Sec. 3111. Designated contract markets.Sec. 3112735. Designated contract markets. CommentsClose CommentsPermalink





Sec. 736. Margin. CommentsClose CommentsPermalink





Sec. 3113. Position limits.Sec. 3114. Enhanced authority over registered entitie737. Position limits. CommentsClose CommentsPermalink





Sec. 3115738. Foreign boards of trade. CommentsClose CommentsPermalink





Sec. 3116739. Legal certainty for swaps. CommentsClose CommentsPermalink





Sec. 3117. FDICIA amendment740. Multilateral clearing organizations. CommentsClose CommentsPermalink





Sec. 3118. Enforcement authority.Sec. 3119741. Enforcement. CommentsClose CommentsPermalink





Sec. 3120742. Retail commodity transactions. CommentsClose CommentsPermalink





Sec. 3121. Large swap trader reporting743. Other authority. CommentsClose CommentsPermalink





Sec. 3122. Segregation of assets held as collateral in swap transactions744. Restitution remedies. CommentsClose CommentsPermalink





Sec. 745. Enhanced compliance by registered entities. CommentsClose CommentsPermalink





Sec. 746. Insider trading. CommentsClose CommentsPermalink





Sec. 747. Antidisruptive practices authority. CommentsClose CommentsPermalink





Sec. 748. Commodity whistleblower incentives and protection. CommentsClose CommentsPermalink





Sec. 3123. Other authority749. Conforming amendments. CommentsClose CommentsPermalink





Sec. 3124. Antitrust750. Study on oversight of carbon markets. CommentsClose CommentsPermalink





Sec. 3125. Review of prior actions751. Energy and Environmental Markets Advisory Committee. CommentsClose CommentsPermalink





Sec. 3126. Expedited process752. International harmonization. CommentsClose CommentsPermalink





Sec. 3127753. Antimarket manipulation authority. CommentsClose CommentsPermalink





Sec. 754. Effective date. CommentsClose CommentsPermalink

Subtitle B--Regulation of Security-Based Swap Markets

Sec. 320761. Definitions under the Securities Exchange Act of 1934. CommentsClose CommentsPermalink





Sec. 320762. Repeal of prohibition on regulation of security-based swap agreements. CommentsClose CommentsPermalink





Sec. 320763. Amendments to the Securities Exchange Act of 1934. CommentsClose CommentsPermalink





Sec. 320764. Registration and regulation of swap dealers and majorecurity-based swap dealers and major security-based swap participants. CommentsClose CommentsPermalink





Sec. 3205765. Rulemaking on conflict of interest. CommentsClose CommentsPermalink





Sec. 766. Reporting and recordkeeping. CommentsClose CommentsPermalink





Sec. 3206767. State gaming and bucket shop laws. CommentsClose CommentsPermalink





Sec. 3207768. Amendments to the Securities Act of 1933; treatment of security-based swaps. CommentsClose CommentsPermalink





Sec. 3208769. Definitions under the Investment Company Act of 1940. CommentsClose CommentsPermalink





Sec. 770. Definitions under the Investment Advisors Act of 1940. CommentsClose CommentsPermalink





Sec. 771. Other authority. CommentsClose CommentsPermalink





Sec. 3209772. Jurisdiction. CommentsClose CommentsPermalink





Sec. 3210. Effective date773. Effective date. CommentsClose CommentsPermalink

Sec. 921. Authority to issue rules related to mandatory predispute arbitration. CommentsClose CommentsPermalink





Sec. 922. Whistleblower protection. CommentsClose CommentsPermalink





Sec. 923. Conforming amendments for whistleblower protection. CommentsClose CommentsPermalink





Sec. 924. Implementation and transition provisions for whistleblower protection. CommentsClose CommentsPermalink





Sec. 925. Collateral bars. CommentsClose CommentsPermalink





Sec. 926. Disqualifying felons and other ‘bad actors’ from Regulation D Offerings. CommentsClose CommentsPermalink





Sec. 927. Equal treatment of self-regulatory organization rules. CommentsClose CommentsPermalink





Sec. 928. Clarification that Section 205 of the Investment Advisers Act of 1940 does not apply to State-registered advisers. CommentsClose CommentsPermalink





Sec. 929. Unlawful margin lending. CommentsClose CommentsPermalink





Sec. 929A. Protection for employees of subsidiaries and affiliates of publicly traded companies. CommentsClose CommentsPermalink





Sec. 929B. FAIR Fund amendments. CommentsClose CommentsPermalink





Sec. 929C. Increasing the borrowing limit on Treasury loans. CommentsClose CommentsPermalink

Subtitle C--Improved Financial and Commodity Markets Oversight and AccountabilitySec. 3301. Elevation of certain Inspectors General to appointment pursuant to section 3 of the Inspector General Act of 1978ments to the Regulation of Credit Rating Agencies

Sec. 931. Findings. CommentsClose CommentsPermalink





Sec. 3302. Continuation of provisions relating to personnel932. Enhanced regulation, accountability, and transparency of nationally recognized statistical rating organizations. CommentsClose CommentsPermalink





Sec. 3303. Corrective responses by heads of certain establishments to deficiencies identified by Inspectors General933. State of mind in private actions. CommentsClose CommentsPermalink





Sec. 3304. Effective date; transition rule934. Referring tips to law enforcement or regulatory authorities. CommentsClose CommentsPermalink





Sec. 3305. Authority of the Commodity Futures Trading Commission935. Consideration of information from sources other than the issuer in rating decisions. CommentsClose CommentsPermalink





Sec. 936. Qualification standards for credit rating analysts. CommentsClose CommentsPermalink





Sec. 937. Timing of regulations. CommentsClose CommentsPermalink





Sec. 938. Universal ratings symbols. CommentsClose CommentsPermalink





Sec. 939. Removal of statutory references to credit ratings. CommentsClose CommentsPermalink





Sec. 939A. Securities and Exchange Commission study on strengthening credit rating agency independence. CommentsClose CommentsPermalink





Sec. 939B. Government Accountability Office study on alternative business models. CommentsClose CommentsPermalink





Sec. 939C. Government Accountability Office study on the creation of an independent professional analyst organization. CommentsClose CommentsPermalink





Sec. 939D. Initial credit rating assignments. CommentsClose CommentsPermalink

Sec. 981. Authority to share certain information with foreign authorities. CommentsClose CommentsPermalink





Sec. 982. Oversight of brokers and dealers. CommentsClose CommentsPermalink





Sec. 983. Portfolio margining. CommentsClose CommentsPermalink





Sec. 984. Loan or borrowing of securities. CommentsClose CommentsPermalink





Sec. 985. Technical corrections to Federal securities laws. CommentsClose CommentsPermalink





Sec. 986. Conforming amendments relating to define ‘commercial risk’, ‘operating risk’, and ‘balance sheet risk’repeal of the Public Utility Holding Company Act of 1935. CommentsClose CommentsPermalink





Sec. 3306. Conflicts of interest in clearing organization987. Amendment to definition of material loss and nonmaterial losses to the Deposit Insurance Fund for purposes of Inspector General reviews. CommentsClose CommentsPermalink





Sec. 3307. Definitions of major swap participant and major security-based swap participant988. Amendment to definition of material loss and nonmaterial losses to the National Credit Union Share Insurance Fund for purposes of Inspector General reviews. CommentsClose CommentsPermalink





Sec. 989. Government Accountability Office study on proprietary trading. CommentsClose CommentsPermalink





Sec. 989A. Senior investor protections. CommentsClose CommentsPermalink





Sec. 989B. Designated Federal Entity Inspectors General Independence. CommentsClose CommentsPermalink





Sec. 989C. Strengthening Inspector General accountability. CommentsClose CommentsPermalink





Sec. 989D. Removal of inspectors general of designated Federal entities. CommentsClose CommentsPermalink





Sec. 989E. Additional oversight of financial regulatory system. CommentsClose CommentsPermalink

Sec. 991. Securities and Exchange Commission self-funding. CommentsClose CommentsPermalink

TITLE IV--X--BUREAU OF CONSUMER FINANCIAL PROTECTION

AGENCY ACTSec. 4Sec. 1001. Short title. CommentsClose CommentsPermalink





Sec. 41002. Definitions. CommentsClose CommentsPermalink

Subtitle A--Establishment of the Agency

Sec. 4101. Establishment of the Consumer Financial Protection Agency.

Sec. 4102. Director.

Sec. 4103. Establishment and composition of the commission.

Sec. 4104. Consumer Financial Protection Oversight BoardBureau of Consumer Financial Protection

Sec. 1011. Establishment of the Bureau. CommentsClose CommentsPermalink





Sec. 41051012. Executive and administrative powers. CommentsClose CommentsPermalink





Sec. 41061013. Administration. CommentsClose CommentsPermalink





Sec. 41071014. Consumer Advisory Board. CommentsClose CommentsPermalink





Sec. 41081015. Coordination. CommentsClose CommentsPermalink





Sec. 4109. Reports to the Congress.Sec. 4110. GAO small business studie1016. Appearances before and reports to Congress. CommentsClose CommentsPermalink





Sec. 4111. Funding; fees and assessments1017. Funding; penalties and fines. CommentsClose CommentsPermalink





Sec. 4112. Amendments relating to other administrative provisions.

Sec. 4113. Oversight by GAO.

Sec. 41141018. Effective date. CommentsClose CommentsPermalink

Subtitle B--General Powers of the Director and Agency

Sec. 4201. Mandate and objectives.

Sec. 4202. AuthoritiesBureau

Sec. 1021. Purpose, objectives, and functions. CommentsClose CommentsPermalink





Sec. 1022. Rulemaking authority. CommentsClose CommentsPermalink





Sec. 4203. Examination and enforcement for small banks, thrift1023. Review of Bureau regulations. CommentsClose CommentsPermalink





Sec. 1024. Supervision of nondepository covered persons. CommentsClose CommentsPermalink





Sec. 1025. Supervision of very large banks, savings associations, and credit unions. CommentsClose CommentsPermalink





Sec. 4204. Simultaneous and coordinated supervisory action.Sec. 4205. Limitations on authority of agency and director1026. Other banks, savings associations, and credit unions. CommentsClose CommentsPermalink





Sec. 4206. Collection of information; confidentiality regulation1027. Limitations on authorities of the Bureau; preservation of authorities. CommentsClose CommentsPermalink





Sec. 4207. Monitoring; assessments of significant regulations; reports.Sec. 4201028. Authority to restrict mandatory pre-dispute arbitration. CommentsClose CommentsPermalink





Sec. 4209. Registration and supervision of nondepository covered persons.Sec. 42101029. Effective date. CommentsClose CommentsPermalink

Subtitle C--Specific Bureau Authorities

Sec. 4301031. Prohibiting unfair, deceptive, or abusive acts or practices. CommentsClose CommentsPermalink





Sec. 4302. Disclosures.

Sec. 4303. Sales practices.

Sec. 4304. Pilot disclosures.

Sec. 4305. Adopting operational standards to deter unfair, deceptive, or abusive practices.

Sec. 4306. Duti1032. Disclosures. CommentsClose CommentsPermalink




Sec. 43071033. Consumer rights to access information. CommentsClose CommentsPermalink





Sec. 4308. Prohibited acts.

Sec. 4309. Treatment of remittance transfers.

Sec. 4310. Effective date.

Sec. 4311. No authority to require the offering of financial products or services.

Sec. 4312. Appraisal independence requirements.

Sec. 4313. Overdraft protection notice requirement1034. Response to consumer complaints and inquiries. CommentsClose CommentsPermalink




Sec. 4314. Review, report, and program with respect to exchange facilitators1035. Private education loan ombudsman. CommentsClose CommentsPermalink





Sec. 4315. Regulation of person-to-person lending1036. Prohibited acts. CommentsClose CommentsPermalink





Sec. 4316. Treatment of reverse mortgages1037. Effective date. CommentsClose CommentsPermalink

Subtitle D--Preservation of State Law

Sec. 4401041. Relation to State law. CommentsClose CommentsPermalink





Sec. 4401042. Preservation of enforcement powers of States. CommentsClose CommentsPermalink





Sec. 4401043. Preservation of existing contracts. CommentsClose CommentsPermalink





Sec. 4401044. State law preemption standards for national banks and subsidiaries clarified. CommentsClose CommentsPermalink





Sec. 4405. Visitorial standards.Sec. 44061045. Clarification of law applicable to nondepository institution subsidiaries. CommentsClose CommentsPermalink





Sec. 44071046. State law preemption standards for Federal savings associations and subsidiaries clarified. CommentsClose CommentsPermalink





Sec. 4408. Visitorial standards.Sec. 4409. Clarification of law applicable to nondepository institution subsidiarie1047. Visitorial standards for national banks and savings associations. CommentsClose CommentsPermalink





Sec. 44101048. Effective date. CommentsClose CommentsPermalink

Subtitle E--Enforcement Powers

Sec. 4501051. Definitions. CommentsClose CommentsPermalink





Sec. 4501052. Investigations and administrative discovery. CommentsClose CommentsPermalink





Sec. 4501053. Hearings and adjudication proceedings. CommentsClose CommentsPermalink





Sec. 4501054. Litigation authority. CommentsClose CommentsPermalink





Sec. 4501055. Relief available. CommentsClose CommentsPermalink





Sec. 4501056. Referrals for criminal proceedings. CommentsClose CommentsPermalink





Sec. 4501057. Employee protection. CommentsClose CommentsPermalink





Sec. 4508. No private right of action.Sec. 45091058. Effective date. CommentsClose CommentsPermalink

Subtitle F--Transfer of Functions and Personnel; Transitional Provisions

Sec. 4601. Transfer of certai1061. Transfer of consumer financial protection functions. CommentsClose CommentsPermalink





Sec. 4601062. Designated transfer date. CommentsClose CommentsPermalink





Sec. 4601063. Savings provisions. CommentsClose CommentsPermalink





Sec. 4601064. Transfer of certain personnel. CommentsClose CommentsPermalink





Sec. 4601065. Incidental transfers. CommentsClose CommentsPermalink





Sec. 4601066. Interim authority of the Secretary. CommentsClose CommentsPermalink





Sec. 1067. Transition oversight. CommentsClose CommentsPermalink

Subtitle G--Regulatory Improvements

Sec. 4701. Collection of deposit account data.Sec. 47021071. Small business data collection. CommentsClose CommentsPermalink





Sec. 4703. Annual financial autopsy1072. GAO study on the effectiveness and impact of various appraisal methods. CommentsClose CommentsPermalink





Sec. 4704. Reporting of mortgage data by State1073. Prohibited payments to mortgage originators. CommentsClose CommentsPermalink





Sec. 1074. Minimum standards for residential mortgage loans. CommentsClose CommentsPermalink





Sec. 1075. Prohibition on certain prepayment penalties. CommentsClose CommentsPermalink





Sec. 1076. Assistance for economically vulnerable individuals and families. CommentsClose CommentsPermalink





Sec. 1077. Remittance transfers. CommentsClose CommentsPermalink





Sec. 1078. Department of the Treasury study on ending the conservatorship of Fannie Mae, Freddie Mac, and reforming the housing finance system. CommentsClose CommentsPermalink





Sec. 1079. Reasonable fees and rules for payment card transactions. CommentsClose CommentsPermalink





Sec. 1079A. Use of Consumer Reports. CommentsClose CommentsPermalink

Subtitle H--Conforming Amendments

Sec. 4801. Amendments to the Inspector General Act of 19781081. Amendments to the Inspector General Act. CommentsClose CommentsPermalink





Sec. 4801082. Amendments to the Privacy Act of 1974. CommentsClose CommentsPermalink





Sec. 4801083. Amendments to the Alternative Mortgage Transaction Parity Act of 1982. CommentsClose CommentsPermalink





Sec. 4804. Amendments to the Consumer Credit Protection1084. Amendments to the Electronic Fund Transfer Act. CommentsClose CommentsPermalink





Sec. 48051085. Amendments to the Equal Credit Opportunity Act. CommentsClose CommentsPermalink





Sec. 1086. Amendments to the Expedited Funds Availability Act. CommentsClose CommentsPermalink





Sec. 48061087. Amendments to the Fair Credit Billing Act. CommentsClose CommentsPermalink





Sec. 1088. Amendments to the Fair Credit Reporting Act and the Fair and Accurate Credit Transactions Act. CommentsClose CommentsPermalink





Sec. 1089. Amendments to the Fair Debt Collection Practices Act. CommentsClose CommentsPermalink





Sec. 1090. Amendments to the Federal Deposit Insurance Act. CommentsClose CommentsPermalink





Sec. 48071091. Amendments to the Gramm-Leach-Bliley Act. CommentsClose CommentsPermalink





Sec. 4808. Amendments to the Home1092. Amendments to the Home Mortgage Disclosure Act of 1975.Sec. 4809. Amendments to division D of the Omnibus Appropriations Act, 2009. CommentsClose CommentsPermalink





Sec. 48101093. Amendments to the Homeowners Protection Act of 1998. CommentsClose CommentsPermalink





Sec. 48111094. Amendments to the Home Ownership and Equity Protection Act of 1994. CommentsClose CommentsPermalink





Sec. 1095. Amendments to the Omnibus Appropriations Act, 2009. CommentsClose CommentsPermalink





Sec. 1096. Amendments to the Real Estate Settlement Procedures Act of 1974. CommentsClose CommentsPermalink





Sec. 48121097. Amendments to the Right to Financial Privacy Act of 1978. CommentsClose CommentsPermalink





Sec. 48131098. Amendments to the Secure and Fair Enforcement for Mortgage Licensing Act of 2008. CommentsClose CommentsPermalink





Sec. 48141099. Amendments to the Truth in Lending Act. CommentsClose CommentsPermalink





Sec. 1100. Amendments to the Truth in Savings Act. CommentsClose CommentsPermalink





Sec. 48151101. Amendments to the Telemarketing and Consumer Fraud Abuse andand Abuse Prevention Act. CommentsClose CommentsPermalink





Sec. 4816. Membership in Financial Literacy and Education Commission.

Sec. 4817. Effective date.

Sec. 4818. Amendments to Truth in Lending Act.

Subtitle I--Improvements to the Federal Trade Commission Act

Sec. 4901. Amendments to the Federal Trade Commission Act.

Subtitle J--Miscellaneous

Sec. 4951. Requirements for State-licensed loan originators.

TITLE V--CAPITAL MARKETSSubtitle A--Private Fund Investment Advisers Registration Act

Sec. 5001. Short title.

Sec. 5002. Definitions.

Sec. 5003. Elimination of private adviser exemption; Limited exemption for foreign private fund advisers; Limited intrastate exemption.

Sec. 5004. Collection of data.

Sec. 5005. Elimination of disclosure provision.

Sec. 5006. Exemption of and reporting by venture capital fund advisers.

Sec. 5007. Exemption of and reporting by certain private fund advisers.

Sec. 5008. Clarification of rulemaking authority1102. Amendments to the Paperwork Reduction Act. CommentsClose CommentsPermalink




Sec. 5009. GAO study1103. Adjustments for inflation in the Truth in Lending Act. CommentsClose CommentsPermalink





Sec. 5010. Effective date; Transition period1104. Small business fairness and regulatory transparency. CommentsClose CommentsPermalink





Sec. 5011. Qualified client standard.Subtitle B--Accountability and Transparency in Rating Agencies ActSec. 6001. Short title1105. Effective date. CommentsClose CommentsPermalink

Sec. 1151. Federal Reserve Act amendments on emergency lending authority. CommentsClose CommentsPermalink





Sec. 6002. Enhanced regulation of nationally recognized statistical rating organization1152. Reviews of special Federal Reserve credit facilities. CommentsClose CommentsPermalink





Sec. 6003. Standards for private actions1153. Public access to information. CommentsClose CommentsPermalink





Sec. 6004. Issuer disclosure of preliminary ratings.

Sec. 6005. Change to designation.

Sec. 6006. Timeline for regulations.

Sec. 6007. Elimination of exemption from fair disclosure rule1154. Liquidity event determination. CommentsClose CommentsPermalink




Sec. 6008. Advisory Board1155. Emergency financial stabilization. CommentsClose CommentsPermalink





Sec. 6009. Removal of statutory references to credit rating1156. Additional related amendments. CommentsClose CommentsPermalink





Sec. 6010. Review of reliance on ratings.Sec. 6011. Publication of rating histories on the EDGAR system1157. Federal Reserve Act amendments on Federal reserve bank governance. CommentsClose CommentsPermalink





Sec. 6012. Effect of Rule 436(g)1158. Amendments to the Federal Reserve Act relating to supervision and regulation policy. CommentsClose CommentsPermalink





Sec. 6013. Studies.Subtitle C--Investor Protection ActSec. 701159. GAO audit of the Federal Reserve facilities; Publication of Board actions. CommentsClose CommentsPermalink

Sec. 1201. Short title. CommentsClose CommentsPermalink





Part 1--Disclosure

Sec. 7101. Investor Advisory Committee established.

Sec. 7102. Clarification of the Commission’s authority to engage in consumer testing.

Sec. 7103. Establishment of a fiduciary duty for brokers, dealers, and investment advisers, and harmonization of regulation.

Sec. 7104. Commission study and rulemaking on disclosure to retail customers before purchase of products or services.

Sec. 7105. Beneficial ownership and short-swing profit reporting.

Sec. 7106. Revision to recordkeeping rules.

Sec. 7107. Study on enhancing investment adviser examinations.

Sec. 7108. GAO study of financial planning.

Part 2--Enforcement and Remedies

Sec. 7201. Authority to restrict mandatory pre-dispute arbitration.

Sec. 7202. Comptroller General study to review securities arbitration system.

Sec. 7203. Whistleblower protection.

Sec. 7204. Conforming amendments for whistleblower protection.

Sec. 7205. Implementation and transition provisions for whistleblower protections.

Sec. 7206. Collateral bars.

Sec. 7207. Aiding and abetting authority under the Securities Act and the Investment Company Act.

Sec. 7208. Authority to impose penalties for aiding and abetting violations of the Investment Advisers Act.

Sec. 7209. Deadline for completing examinations, inspections and enforcement actions.

Sec. 7210. Nationwide service of subpoenas.

Sec. 7211. Authority to impose civil penalties in cease and desist proceedings1202. Purpose. CommentsClose CommentsPermalink




Sec. 7212. Formerly associated persons.Sec. 7213. Sharing privileged information with other authoritie1203. Definitions. CommentsClose CommentsPermalink





Sec. 7211204. Expanded access to grand jury information.

Sec. 7215. Aiding and abetting standard of knowledge satisfied by recklessness.

Sec. 7216. Extraterritorial jurisdiction of the antifraud provisions of the Federal securities laws.

Sec. 7217. Fidelity bonding.

Sec. 7218. Enhanced SEC authority to conduct surveillance and risk assessment.

Sec. 7219. Investment company examinations.

Sec. 7220. Control person liability under the Securities Exchange Act.

Sec. 7221. Enhanced application of anti-fraud provisions.

Sec. 7222. SEC authority to issue rules on proxy access.

Part 3--Commission Funding and Organization

Sec. 7301. Authorization of appropriations.

Sec. 7302. Investment adviser regulation funding.

Sec. 7303. Amendments to section 31 of the Securities Exchange Act of 1934.

Sec. 7304. Commission organizational study and reform.

Sec. 7305. Capital Markets Safety Board.

Sec. 7306. Report on implementation of ‘post-Madoff reforms’.

Sec. 7307. Joint Advisory Committee.

Part 4--Additional Commission Reforms

Sec. 7401. Regulation of securities lending.

Sec. 7402. Lost and stolen securities.

Sec. 7403. Fingerprinting.

Sec. 7404. Equal treatment of self-regulatory organization rulemainstream financial institutions. CommentsClose CommentsPermalink




Sec. 7405. Clarification that section 205 of the Investment Advisers Act of 1940 does not apply to State-registered advisers.

Sec. 7406. Conforming amendments for the repeal of the Public Utility Holding Company Act of 1935.

Sec. 7407. Promoting transparency in financial reporting.

Sec. 7408. Unlawful margin lending.

Sec. 7409. Protecting confidentiality of materials submitted to the Commission.

Sec. 7410. Technical corrections.

Sec. 7411. Municipal securities.

Sec. 7412. Interested person definition.

Sec. 7413. Rulemaking authority to protect redeeming investors.

Sec. 7414. Study on SEC revolving door.

Sec. 7415. Study on internal control evaluation and reporting 1205. Low-cost burdens on smaller issuers.

Sec. 7416. Analysis of rule regarding smaller reporting companies.

Sec. 7417. Financial Reporting Forum.

Sec. 7418. Investment advisers subject to State authorities.

Sec. 7419. Custodial requirements.

Sec. 7420. Ombudsman.

Sec. 7421. Notice to missing security holders.

Sec. 7422. Short sale reforms.

Sec. 7423. Streamlining of SEC filing procedures.

Part 5--Securities Investor Protection Act Amendments

Sec. 7501. Increasing the minimum assessment paid by SIPC members.

Sec. 7502. Increasing the borrowing limit on treasury loans.

Sec. 7503. Increasing the cash limit of protection.

Sec. 7504. SIPC as trustee in SIPA liquidation proceedings.

Sec. 7505. Insiders ineligible for SIPC advances.

Sec. 7506. Eligibility for direct payment procedure.

Sec. 7507. Increasing the fine for prohibited acts under SIPA.

Sec. 7508. Penalty for misrepresentation of SIPC membership or protection.

Sec. 7509. Futures held in a portfolio margin securities account protection.

Sec. 7510. Study and report on the feasibility of risk-based assessments for SIPC members.

Part 6--Sarbanes-Oxley Act Amendments

Sec. 7601. Public Company Accounting Oversight Board oversight of auditors of brokers and dealers.

Sec. 7602. Foreign regulatory information sharing.

Sec. 7603. Expansion of audit information to be produced and exchanged with foreign counterparts.

Sec. 7604. Conforming amendment related to registration.

Sec. 7605. Fair fund amendments.

Sec. 7606. Exemption for nonaccelerated filers.

Sec. 7607. Whistleblower protection against retaliation by a subsidiary of an issuer.

Sec. 7608. Congressional access to information.

Sec. 7609. Creation of ombudsman for the PCAOB.

Sec. 7610. Auditing Oversight Board.

Part 7--Senior Investment Protection

Sec. 7701. Findings.

Sec. 7702. Definitions.

Sec. 7703. Grants to States for enhanced protection of seniors from being misled by false designatioalternatives to payday loans. CommentsClose CommentsPermalink




Sec. 7704. Application1206. Grants to establish loan-loss reserve funds. CommentsClose CommentsPermalink





Sec. 7705. Length of participation1207. Procedural provisions. CommentsClose CommentsPermalink





Sec. 77061208. Authorization of appropriations. CommentsClose CommentsPermalink





Part 8--Registration of Municipal Financial Advisors

Sec. 7801. Municipal financial adviser registration requirement.

Sec. 7802. Conforming amendments.

Sec. 7803. Effective dates.

TITLE VI--FEDERAL INSURANCE OFFICE

Sec. 8001. Short title.

Sec. 8002. Federal Insurance Office established.

Sec. 8003. Report on global reinsurance market.

Sec. 8004. Study on modernization and improvement of insurance regulation in the United States.

Sec. 8005. Sense of Congress regarding simplified mortgage contract summaries.

TITLE VII--MORTGAGE REFORM AND ANTI-PREDATORY LENDING ACT

Sec. 9000. Short title; designation as enumerated consumer law.

Subtitle A--Residential Mortgage Loan Origination Standards

Sec. 9001. Definitions.

Sec. 9002. Residential mortgage loan origination.

Sec. 9003. Prohibition on steering incentives.

Sec. 9004. Liability.

Sec. 9005. Regulations.

Sec. 9006. Study of shared appreciation mortgages.

Subtitle B--Minimum Standards For Mortgages

Sec. 9101. Ability to repay.

Sec. 9102. Net tangible benefit for refinancing of residential mortgage loans.

Sec. 9103. Safe harbor and rebuttable presumption.

Sec. 9104. Liability.

Sec. 9105. Defense to foreclosure.

Sec. 9106. Additional standards and requirements.

Sec. 9107. Rule of construction.

Sec. 9108. Effect on State laws.

Sec. 9109. Regulations.

Sec. 9110. Amendments to civil liability provisions.

Sec. 9111. Lender rights in the context of borrower deception.

Sec. 9112. Six-month notice required before reset of hybrid adjustable rate mortgages.

Sec. 9113. Required disclosures.

Sec. 9114. Disclosures required in monthly statements for residential mortgage loans.

Sec. 9115. Legal assistance for foreclosure-related issues.

Sec. 9116. Effective date.

Sec. 9117. Report by the GAO.

Sec. 9118. State Attorney General enforcement authority.

Subtitle C--High-Cost Mortgages

Sec. 9201. Definitions relating to high-cost mortgages.

Sec. 9202. Amendments to existing requirements for certain mortgages.

Sec. 9203. Additional requirements for certain mortgages.

Sec. 92041209. Regulations. CommentsClose CommentsPermalink




Sec. 9205. Effective date.Subtitle D--Office of Housing Counseling

Sec. 9301. Short title.

Sec. 9302. Establishment of Office of Housing Counseling.

Sec. 9303. Counseling procedures.

Sec. 9304. Grants for housing counseling assistance.

Sec. 9305. Requirements to use HUD-certified counselors under HUD programs.

Sec. 9306. Study of defaults and foreclosures.

Sec. 9307. Default and foreclosure database.

Sec. 9308. Definitions for counseling-related programs.

Sec. 9309. Accountability and transparency for grant recipients.

Sec. 9310. Updating and simplification of mortgage information booklet.

Sec. 9311. Home inspection counseling.

Sec. 9312. Warnings to homeowners of foreclosure rescue scams.

Subtitle E--Mortgage Servicing

Sec. 9401. Escrow and impound accounts relating to certain consumer credit transactions.

Sec. 9402. Disclosure notice required for consumers who waive escrow services.

Sec. 9403. Real Estate Settlement Procedures Act of 1974 amendments.

Sec. 9404. Truth in Lending Act amendments.

Sec. 9405. Escrows included in repayment analysis.

Subtitle F--Appraisal Activities

Sec. 9501. Property appraisal requirements.

Sec. 9502. Unfair and deceptive practices and acts relating to certain consumer credit transactions.

Sec. 9503. Amendments relating to Appraisal Subcommittee of FIEC, Appraiser Independence Monitoring, Approved Appraiser Education, Appraisal Management Companies, Appraiser Complaint Hotline, Automated Valuation Models, and Broker Price Opinions.

Sec. 9504. Study required on improvements in appraisal process and compliance programs.

Sec. 9505. Equal Credit Opportunity Act amendment.

Sec. 9506. Real Estate Settlement Procedures Act of 1974 amendment relating to certain appraisal fees.

Subtitle G--Sense of Congress Regarding the Importance of Government Sponsored Enterprises Reform

Sec. 9601. Sense of Congress regarding the importance of Government-sponsored enterprises reform to enhance the protection, limitation, and regulation of the terms of residential mortgage credit.

Subtitle H--Reports and Data Collection

Sec. 9701. GAO study report on government efforts to combat mortgage foreclosure rescue scams and loan modification fraud.

Sec. 9702. Reporting of mortgage data by State.

Subtitle I--Multifamily Mortgage Resolution

Sec. 9801. Multifamily mortgage resolution program.

Subtitle J--Study of Effect of Drywall Presence on Foreclosures

Sec. 9901. Study of effect of drywall presence on foreclosures.

Subtitle K--Home Affordable Modification Program

Sec. 9911. Home Affordable Modification Program guidelines.

Subtitle L--Making Home Affordable Program

Sec. 9921. Public availability of information.

TITLE VIII--FORECLOSURE AVOIDANCE AND AFFORDABLE HOUSING

Sec. 10001. Emergency mortgage relief.

Sec. 10002. Additional assistance for Neighborhood Stabilization Program1210. Evaluation and reports to Congress. CommentsClose CommentsPermalink

TITLE IX--NONADMITTED AND REINSURANCE REFORMXIII--PAY IT BACK ACT

Sec. 1005301. Short title. CommentsClose CommentsPermalink





Sec. 10052. Effective date.Subtitle A--Nonadmitted Insurance

Sec. 10101. Reporting, payment, and allocation of premium taxes.

Sec. 10102. Regulation of nonadmitted insurance by insured’s home state.

Sec. 10103. Participation in national producer database.

Sec. 10104. Uniform standards for surplus lines eligibility.

Sec. 10105. Streamlined application for commercial purchasers302. Amendment to reduce TARP authorization. CommentsClose CommentsPermalink




Sec. 10106. GAO study of nonadmitted insurance market.

Sec. 10107. Definitions.

Subtitle B--ReinsuranceSec. 10201. Regulation of credit for reinsurance and reinsurance agreements303. Report. CommentsClose CommentsPermalink




Sec. 10202. Regulation of reinsurer solvency304. Amendments to Housing and Economic Recovery Act of 2008. CommentsClose CommentsPermalink





Sec. 10203. Definitions.Subtitle C--Rule of ConstructionSec. 10301. Rule of construction305. Federal Housing Finance Agency report. CommentsClose CommentsPermalink





Sec. 10302. Severability306. Repayment of unobligated ARRA funds. CommentsClose CommentsPermalink

TITLE X--INTEREST-BEARING TRANSACTION ACCOUNTS AUTHORIZEDSec. 11001. Interest-bearing transaction accounts authorizedIV--MISCELLANEOUS

Sec. 1401. Restrictions on use of Federal funds to finance bailouts of foreign governments. CommentsClose CommentsPermalink

TITLE I--FINANCIAL STABILITY IMPROVEMENT ACTSEC. 1000. SHORT TITLE;XV--CONGO CONFLICT MINERALS

SEC. 2. DEFINITIONS.

(a) Short Title- This title may be cited as the ‘Financial Stability Improvement Act of 2009’.

(b) Definitions- For purposes of this title, the followingAs used in this Act, the following definitions shall apply:

(1) The term ‘Board’ means the Board of Governors of the Federal Reserve System.

(2) The term ‘Council’ means the Financial Services Oversight Council established under section 1001.

(3) The term ‘Federal financial regulatory agency’ means any agency that has a voting member of the Council as set forth in section 1001(b)(1).

(4) The term ‘financial company’ means a company or other entity--

(A) that is--

(i) incorporated or organized under the laws of the United States or any State, territory, or possession of the United States, the District of Columbia, Commonwealth of Puerto Rico, Commonwealth of Northern Mariana Islands, Guam, American Samoa, or the United States Virgin Islands; or

(ii) a company incorporated in or organized in a country other than the United States that has significant operations in the United States (hereafter in this title referred to as a ‘foreign financial parent’) after through--

(I) a Federal or State branch or agency of a foreign bank as such terms are defined in the International Banking Act of 1978 (12 U.S.C. 3101 et seq.); or

(II) a United States affiliate or other United States operating entity;

(B) that is, in whole or in part, directly or indirectly, engaged in financial activities; and

(C) that is not a Farm Credit System institution chartered under and subject to the provisions of the Farm Credit Act of 1971, as amended, except as the context otherwise requires or as otherwise specifically provided in this Act: CommentsClose CommentsPermalink




(1) AFFILIATE- The term ‘affiliate’ means any company that controls, is controlled by, or is under common control with another company. CommentsClose CommentsPermalink





(2) APPROPRIATE FEDERAL BANKING AGENCY- On and after the transfer date, the term ‘appropriate Federal banking agency’ has the same meaning as in section 3(q) of the Federal Deposit Insurance Act (12 U.S.C. 2001 et seq.).

(5) FINANCIAL HOLDING COMPANY SUBJECT TO STRICTER STANDARDS- The term ‘financial holding company subject to stricter standards’ means--

(A) a financial company that has been subjected to stricter prudential standards under subtitle B; or

(B) in the case of a financial company described in subparagraph (A) that is required to establish an intermediate holding company under section 6 of the Bank Holding Company Act, the section 6 holding company through which the financial company is required to conduct its financial activities1813(q)), as amended by title III. CommentsClose CommentsPermalink




(3) BOARD OF GOVERNORS- The term ‘Board of Governors’ means the Board of Governors of the Federal Reserve System. CommentsClose CommentsPermalink





(4) BUREAU- The term ‘Bureau’ means the Bureau of Consumer Financial Protection established under title X. CommentsClose CommentsPermalink





(5) COMMISSION- The term ‘Commission’ means the Securities and Exchange Commission, except in the context of the Commodity Futures Trading Commission. CommentsClose CommentsPermalink





(6) The term ‘primary financial regulatory agency’ means the following:

(A) The Comptroller of the Currency, with respect to any national bank, any Federal branch or Federal agency of a foreign bank, and, after the date on which the functions of the Office of Thrift Supervision and the Director of the Office of Thrift Supervision are transferred under subtitle C, a Federal savings association.

(B) The Board, with respect to--

(i) any State member bank;

(ii) any bank holding company and any subsidiary of such company (as such terms are defined in the Bank Holding Company Act), other than a subsidiary that is described in any other subparagraph of this paragraph to the extent that the subsidiary is engaged in an activity described in such subparagraph;

(iii) any financial holding company subject to stricter standards and any subsidiary (as such term is defined in the Bank Holding Company Act) of such company, other than a subsidiary that is described in any other subparagraph of this paragraph to the extent that the subsidiary is engaged in an activity described in such subparagraph;

(iv) after the date on which the functions of the Office of Thrift Supervision are transferred under subtitle C, any savings and loan holding company (as defined in section 10(a)(1)(D) of the Home Owners’ Loan Act) and any subsidiary (as such term is defined in the Bank Holding Company Act of 1956) of such company, other than a subsidiary that is described in any other subparagraph of this paragraph, to the extent that the subsidiary is engaged in an activity described in such subparagraph;

(v) any organization organized and operated under section 25 or 25A of the Federal Reserve Act (12 U.S.C. 601 et seq. or 611 et seq.); and

(vi) any foreign bank or company that is treated as a bank holding company under subsection (a) of section 8 of the International Banking Act of 1978 and any subsidiary (other than a bank or other subsidiary that is described in any other subparagraph of this paragraph) of any such foreign bank or company.

(C) The Federal Deposit Insurance Corporation, with respect to any State nonmember bank, any insured State branch of a foreign bank (as such terms are defined in section 3 of the Federal Deposit Insurance Act), and, after the date on which the functions of the Office of Thrift Supervision are transferred under subtitle C, any State savings association.

(D) The National Credit Union Administration, with respect to any insured credit union underCORPORATION- The term ‘Corporation’ means the Federal Deposit Insurance Corporation. CommentsClose CommentsPermalink




(7) COUNCIL- The term ‘Council’ means the Financial Stability Oversight Council established under title I. CommentsClose CommentsPermalink





(8) CREDIT UNION- The term ‘credit union’ means a Federal credit union, State credit union, or State-chartered credit union, as those terms are defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1751 et seq.).

(E) The Securities and Exchange Commission, with respect to--

(i) any broker or dealer registered with the Securities and Exchange Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.);

(ii) any investment company registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. 80a-1 et seq.);

(iii) any investment adviser registered with the Securities and Exchange Commission under the Investment Advisers Act of 1940 (152). CommentsClose CommentsPermalink




(9) FEDERAL BANKING AGENCY- The term-- CommentsClose CommentsPermalink





(A) ‘Federal banking agency’ means, individually, the Board of Governors, the Office of the Comptroller of the Currency, and the Corporation; and CommentsClose CommentsPermalink





(B) ‘Federal banking agencies’ means all of the agencies referred to in subparagraph (A), collectively. CommentsClose CommentsPermalink





(10) FUNCTIONALLY REGULATED SUBSIDIARY- The term ‘functionally regulated subsidiary’ has the same meaning as in section 5(c)(5) of the Bank Holding Company Act of 1956 ( 12 U.S.C. 80b-1 et seq.) with respect to the investment1844(c)(5) ). CommentsClose CommentsPermalink





(11) PRIMARY FINANCIAL REGULATORY AGENCY- The term ‘primary financial regulatory agency’ means-- CommentsClose CommentsPermalink





(A) the appropriate Federal banking agency, with respect to institutions described in section 3(q) of the Federal Deposit Insurance Act, except to the extent that an institution is or the activities of an institution are otherwise subject to the jurisdiction of an agency listed in subparagraph (B), (C), (D), or (E); CommentsClose CommentsPermalink





(B) the Securities and Exchange Commission, with respect to-- CommentsClose CommentsPermalink





(i) any broker or dealer that is registered with the Commission under the Securities Exchange Act of 1934; CommentsClose CommentsPermalink





(ii) any investment company that is registered with the Commission under the Investment Company Act of 1940; CommentsClose CommentsPermalink





(iii) any investment adviser that is registered with the Commission under the Investment Advisers Act of 1940, with respect to the investment advisory activities of such company and activities that are incidental to such advisory activities;

(iv) any clearing agency (as defined in section 3(a)(23) of the Securities Exchange Act of 1934);

(v) a securities-based swap execution facility that is registered with the Securities and Exchange Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.);

(vi) any exchange registered as a national securities exchange with the Securities and Exchange Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.);

(vii) any credit rating agency registered with the Securities and Exchange Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.);

(viii) any securities information processor registered with the Securities and Exchange Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); and

(ix) any transfer agent registered with the Securities and Exchange Commission and CommentsClose CommentsPermalink




(iv) any clearing agency registered with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.).(F) T; CommentsClose CommentsPermalink





(C) the Commodity Futures Trading Commission, with respect to--(i) any futures commission merchant, any commodity trading adviser, any retail foreign exchange dealer, and any commodity any futures commission merchant, any commodity trading adviser, and any commodity pool operator registered with the Commodity Futures Trading Commission under the Commodity Exchange Act (7 U.S.C. 1 et seq.), with respect to the commodities activities of such entity and activities that are incidental to such commodities activities; CommentsClose CommentsPermalink





and

(ii) any derivatives clearing organization, designated contract market, or swap execution facility (as defined in the Commodity Exchange Act).

(G) The Federal Housing Finance Agency with respect to the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, and the Federal home loan banks.

(H) T(D) the State insurance authority of the State in which an insurance company is domiciled, with respect to the insurance activities and activities that are incidental to such insurance activities of an insurance company that is subject to supervision by the State insurance authority under State insurance law.(I) The Office of Thrift Supervision, with respect to any Federal savings association, State savings association, or savings and loan holding company, until the date on which the functions of the Office of Thrift Supervision are transferred under subtitle; and CommentsClose CommentsPermalink




(E) the Federal Housing Finance Agency, with respect to Federal Home Loan Banks or the Federal Home Loan Bank System, and with respect to the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation. CommentsClose CommentsPermalink





(12) PRUDENTIAL STANDARDS- The term ‘prudential standards’ means enhanced supervision and regulatory standards developed by the Board of Governors under section 115 or 165. CommentsClose CommentsPermalink





(13) SECRETARY- The term ‘Secretary’ means the Secretary of the Treasury. CommentsClose CommentsPermalink





(14) SECURITIES TERMS- The-- CommentsClose CommentsPermalink





(A) terms ‘broker’, ‘dealer’, ‘issuer’, ‘nationally recognized statistical ratings organization’, ‘security’, and ‘securities laws’ have the same meanings as in section 3 of the Securities Exchange Act of 1934 ( 15 U.S.C.

(7) TERMS DEFINED IN OTHER LAWS-

(A) AFFILIATE- The term ‘affiliate’ has the meaning given such term in section 2(k) of the Bank Holding Company Act of 1956.

(B) STATE MEMBER BANK, STATE NONMEMBER BANK- The terms78c ); CommentsClose CommentsPermalink




(B) term ‘investment adviser’ has the same meaning as in section 202 of the Investment Advisers Act of 1940 (15 U.S.C. 80b-2); and CommentsClose CommentsPermalink





(C) term ‘investment company’ has the same meaning as in section 3 of the Investment Company Act of 1940 (15 U.S.C. 80a-3). CommentsClose CommentsPermalink





(15) STATE- The term ‘State’ means any State, commonwealth, territory, or possession of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, American Samoa, Guam, or the United States Virgin Islands. CommentsClose CommentsPermalink





(16) TRANSFER DATE- The term ‘transfer date’ means the date established under section 311. CommentsClose CommentsPermalink





(17) OTHER INCORPORATED DEFINITIONS- CommentsClose CommentsPermalink





(A) FEDERAL DEPOSIT INSURANCE ACT- The terms ‘affiliate’, ‘bank’, ‘bank holding company’, ‘control’ (when used with respect to a depository institution), ‘deposit’, ‘depository institution’, ‘Federal depository institution’, ‘Federal savings association’, ‘foreign bank’, ‘including’, ‘insured branch’, ‘insured depository institution’, ‘national member bank’, ‘national nonmember bank’, ‘savings association’, ‘State bank’, ‘State depository institution’, ‘State member bank’ and, ‘State nonmember bank’ have the same meanings as in subsections (d)(2) and (e)(2), respectively, of section 3 of the Federal Deposit Insurance Act, ‘State savings association’, and ‘subsidiary’ have the same meanings as in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813). CommentsClose CommentsPermalink





(B) HOLDING COMPANIES- The term-- CommentsClose CommentsPermalink





(i) ‘bank holding company’ has the same meaning as in section 2 of the Bank Holding Company Act of 1956 (12 U.S.C. 1841); CommentsClose CommentsPermalink





(ii) ‘financial holding company’ has the same meaning as in section 2(p) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(p)); and CommentsClose CommentsPermalink





(iii) ‘savings and loan holding company’ has the same meaning as in section 10 of the Home Owners’ Loan Act (12 U.S.C. 1467a(a)). CommentsClose CommentsPermalink

If any provision of this Act, an amendment made by this Act, or the application of such provision or amendment to any person or circumstance is held to be unconstitutional, the remainder of this Act, the amendments made by this Act, and the application of the provisions of such to any person or circumstance shall not be affected thereby. CommentsClose CommentsPermalink

SEC. 1000A. RESTRICTIONS ON THE FEDERAL RESERVE SYSTEM PENDING AUDIT REPORT.

(a) In General- Notwithstanding any other provision of law, the Comptroller General of the United States shall perform an audit of all actions taken by the Board of Governors of the Federal Reserve System and the Federal reserve banks during the current economic crisis pursuant to the authority granted under section 13(c) of the Federal Reserve Act. Such audit shall be completed as expeditiously as possible, but no later than 2 years, after the date of the enactment of the Financial Stability Improvement Act of 2009.

(b) Report-

(1) REQUIRED- Not later than the end of the 90-day period beginning on the date the audit referred to in subsection (a) is completed, the Comptroller General of the United States shall submit a report to the Congress, and make such report available to the public.

(2) CONTENTS- The report under paragraph (1) shall include a detailed description of the findings and conclusion of the Comptroller General with respect to the audit that is the subject4. EFFECTIVE DATE.

(a) In General- For purposes of this title, unless the context otherwise requires, the following definitions shall apply: CommentsClose CommentsPermalink





(1) BANK HOLDING COMPANY- The term ‘bank holding company’ has the same meaning as in section 2 of the Bank Holding Company Act of 1956 (12 U.S.C. 1841). A foreign bank or company that is treated as a bank holding company for purposes of the Bank Holding Company Act of 1956, pursuant to section 8(a) of the report, together with such recommendations for legislative or administrative action as the Comptroller General may determine to be appropriateInternational Banking Act of 1978 (12 U.S.C. 3106(a)), shall be treated as a bank holding company for purposes of this title. CommentsClose CommentsPermalink





(2) CHAIRPERSON- The term ‘Chairperson’ means the Chairperson of the Council. CommentsClose CommentsPermalink





(3) MEMBER AGENCY- The term ‘member agency’ means an agency represented by a voting member of the Council. CommentsClose CommentsPermalink





(4) NONBANK FINANCIAL COMPANY DEFINITIONS- CommentsClose CommentsPermalink





(A) FOREIGN NONBANK FINANCIAL COMPANY- The term ‘foreign nonbank financial company’ means a company (other than a company that is, or is treated in the United States as, a bank holding company or a subsidiary thereof) that is-- CommentsClose CommentsPermalink





(i) incorporated or organized in a country other than the United States; and CommentsClose CommentsPermalink





(ii) predominantly engaged in, including through a branch in the United States, financial activities, as defined in paragraph (6). CommentsClose CommentsPermalink





(B) U.S. NONBANK FINANCIAL COMPANY- The term ‘U.S. nonbank financial company’ means a company (other than a bank holding company or a subsidiary thereof, or a Farm Credit System institution chartered and subject to the provisions of the Farm Credit Act of 1971 (12 U.S.C. 2001 et seq.)) that is-- CommentsClose CommentsPermalink





(i) incorporated or organized under the laws of the United States or any State; and CommentsClose CommentsPermalink





(ii) predominantly engaged in financial activities as defined in paragraph (6). CommentsClose CommentsPermalink





(C) NONBANK FINANCIAL COMPANY- The term ‘nonbank financial company’ means a U.S. nonbank financial company and a foreign nonbank financial company. CommentsClose CommentsPermalink





(D) NONBANK FINANCIAL COMPANY SUPERVISED BY THE BOARD OF GOVERNORS- The term ‘nonbank financial company supervised by the Board of Governors’ means a nonbank financial company that the Council has determined under section 113 shall be supervised by the Board of Governors. CommentsClose CommentsPermalink





(5) OFFICE OF FINANCIAL RESEARCH- The term ‘Office of Financial Research’ means the office established under section 152. CommentsClose CommentsPermalink





(6) PREDOMINANTLY ENGAGED- A company is ‘predominantly engaged in financial activities’ if-- CommentsClose CommentsPermalink





(A) the annual gross revenues derived by the company and all of its subsidiaries from activities that are financial in nature (as defined in section 4(k) of the Bank Holding Company Act of 1956) and, if applicable, from the ownership or control of one or more insured depository institutions, represents 85 percent or more of the consolidated annual gross revenues of the company; or CommentsClose CommentsPermalink





(B) the consolidated assets of the company and all of its subsidiaries related to activities that are financial in nature (as defined in section 4(k) of the Bank Holding Company Act of 1956) and, if applicable, related to the ownership or control of one or more insured depository institutions, represents 85 percent or more of the consolidated assets of the company. CommentsClose CommentsPermalink





(7) SIGNIFICANT INSTITUTIONS- The terms ‘significant nonbank financial company’ and ‘significant bank holding company’ have the meanings given those terms by rule of the Board of Governors. CommentsClose CommentsPermalink





(b) Definitional Criteria- The Board of Governors shall establish, by regulation, the requirements for determining if a company is predominantly engaged in financial activities, as defined in subsection (a)(6). CommentsClose CommentsPermalink





(c) Foreign Nonbank Financial Companies- For purposes of the authority of the Board of Governors under this title with respect to foreign nonbank financial companies, references in this title to ‘company’ or ‘subsidiary’ include only the United States activities and subsidiaries of such foreign company. CommentsClose CommentsPermalink

Subtitle A--The Financial Services OversightFinancial Stability Oversight Council CommentsClose CommentsPermalink

SEC. 1001. FINANCIAL SERVICES11. FINANCIAL STABILITY OVERSIGHT COUNCIL ESTABLISHED.

(a) Establishment- Immediately upon enactment of this title, there is established a Financial ServicesEffective on the date of enactment of this Act, there is established the Financial Stability Oversight Council. CommentsClose CommentsPermalink





(b) Membership- The Council shall consist of the following:(1) members: CommentsClose CommentsPermalink





(1) VOTING MEMBERS- VThe voting members, who shall each have one vote on the Council, as follows:(A) T1 vote on the Council shall be-- CommentsClose CommentsPermalink





(A) the Secretary of the Treasury, who shall serve as the Chairman of the Council.

(B) The Chairman of the Board of Governors of the Federal Reserve System.

(C) The Comptroller of the Currency.

(D) The Director of the Office of Thrift Supervision, until the functions of the Director of the Office of Thrift Supervision are transferred pursuant to subtitle C.

(E) The Chairman of the Securities and Exchange Commission.

(F) The Chairman of the Commodity Futures Trading Commission.

(G) The Chairperson of the Federal Deposit Insurance Corporation.

(H) The Director of the Federal Housing Finance Agency.

(I) The Chairman of the National Credit Union Administration.

(J) The head of the Consumer Financial Protection AgencyChairperson of the Council; CommentsClose CommentsPermalink




(B) the Chairman of the Board of Governors; CommentsClose CommentsPermalink





(C) the Comptroller of the Currency; CommentsClose CommentsPermalink





(D) the Director of the Bureau; CommentsClose CommentsPermalink





(E) the Chairman of the Commission; CommentsClose CommentsPermalink





(F) the Chairperson of the Corporation; CommentsClose CommentsPermalink





(G) the Chairperson of the Commodity Futures Trading Commission; CommentsClose CommentsPermalink





(H) the Director of the Federal Housing Finance Agency; and CommentsClose CommentsPermalink





(I) an independent member appointed by the President, by and with the advice and consent of the Senate, having insurance expertise. CommentsClose CommentsPermalink





(2) NONVOTING MEMBERS- Nonvoting members, who shall serve in an advisory capacity and shallThe Director of the Office of Financial Research-- CommentsClose CommentsPermalink





(A) shall serve in an advisory capacity as a nonvoting member of the Council; and CommentsClose CommentsPermalink





(B) may not be excluded from any of the Council’s proceedings, meetings, discussions, and deliberations:

(A) The Director of the Federal Insurance Office.

(B) A State insurance commissioner, to be designated by a selection process determined by the State insurance commissioners, provided that the term for which a State insurance commissioner may serve shall last no more than the 2-year period beginning on the date that the commissioner is selected.

(C) A State banking supervisor, to be designated by a selection process determined by the State bank supervisors, provided that the term for which a State banking supervisor may serve shall last no more than the 2-year period beginning on the date that the supervisor is selected.

(D) A State securities commissioner (or an officer performing like functions), to be designated by a selection process determined by such State securities commissioners, provided that the term for which a State securities commissioner may serve shall last no more than the 2-year period beginning on the date that the commissioner is selected.

(c) Duties- The Council shall have the following duties:

(1) To advise the Congress on financial domestic and international regulatory developments, including insurance and accounting developments, and make recommendations that will enhance the integrity, efficiency, competitiveness, and stability of the United States financial markets.

(2) To monitor the financial services marketplace to identify potential threats to the stability of the United States financial system.

(3) To identify potential threats to the stability of the United States financial system that do not arise out of the financial services marketplace.

(4) To develop strategies (and conduct exercises in furtherance of those strategies) to prepare for potential threats identified under paragraphs (2) and (3). In doing so, the Council shall collaborate with participants in the financial sector, financial sector coordinating councils, and any other parties the Council determines to be appropriate.

(5) To subject financial companies and financial activities to stricter prudential standards in order to promote financial stability and mitigate systemic risk in accordance with subtitle B.

(6) To issue formal recommendations that a Council member agency adopt stricter prudential standards for firms it regulates to mitigate systemic risk in accordance with subtitle B of this title.

(7) To monitor international regulatory developments, including both insurance and accounting developments, and to identify those developments that may conflict with the policies of the United States or place United States financial services firms or United States financial markets at a competitive disadvantage.

(8) To facilitate information sharing and coordination among the members of the Council regarding financial services policy development, rulemakings, examinations, reporting requirements, and enforcement actions.

(9) To provide a forum for discussion and analysis of emerging market developments and financial regulatory issues among its members.

(10) At the request of an agency that is a Council member, to resolve a jurisdictional dispute between that agency and another agency that is a Council member in accordance with section 1002.

(11) To review and submit comments to the Securities and Exchange Commission and any standards setting body with respect to an existing or proposed accounting principle, standard, or procedure.

SEC. 1002. RESOLUTION OF DISPUTES AMONG FEDERAL FINANCIAL REGULATORY AGENCIES.

(a) Request for Dispute Resolution- The Council shall resolve a dispute among 2 or more Federal financial regulatory agencies if--

(1) a Federal financial regulatory agency has a dispute with another Federal financial regulatory agency about the agencies’ respective jurisdiction over a particular financial company or financial activity or product (excluding matters for which a dispute mechanism specifically has been provided under section 4204 or title III);

(2) the disputing agencies cannot, after a demonstrated good faith effort, resolve the dispute among themselves; and

(3) any of the Federal financial regulatory agencies involved in the dispute--

(A) provides all other disputants prior notice of its intent to request dispute resolution by the Council; and

(B) requests in writing, no earlier than 14 days after providing the notice described in paragraph (A), that the Council resolve the dispute.

(b) Council Decision- The Council shall decide the dispute--

(1) within a reasonable time after receiving the dispute resolution request;

(2) after consideration of relevant information provided by each party toor deliberations of the Council. CommentsClose CommentsPermalink




(c) Terms; Vacancy- CommentsClose CommentsPermalink





(1) TERMS- The independent member of the Council shall serve for a term of 6 years. CommentsClose CommentsPermalink





(2) VACANCY- Any vacancy on the Council shall be filled in the manner in which the dispute; and(3) by agreeing with 1 of the disputants regarding the entirety of the matter or by determining original appointment was made. CommentsClose CommentsPermalink





(3) ACTING OFFICIALS MAY SERVE- In the event of a vacancy in the office of the head of a member agency or department, and pending the appointment of a compromise position.

(c) Form and Binding Effect- A Council decision under this section shall be in writing and include an explanation and shall be binding on all Federal financial regulatory agencies that are parties to the dispute.

SEC. 1003. TECHNICAL AND PROFESSIONAL ADVISORY COMMITTEES.

The Council is authorized to appoint--

(1) subsidiary working groups composed of Council members and their staff, Council staff, or a combination; and

(2) such temporarysuccessor, or during the absence or disability of the head of a member agency or department, the acting head of the member agency or department shall serve as a member of the Council in the place of that agency or department head. CommentsClose CommentsPermalink




(d) Technical and Professional Advisory Committees- The Council may appoint such special advisory, technical, or professional committees as may be useful in carrying out its functions, which may be composed of Council members and their staff, other persons, or a combination.SEC. 1004. FINANCIAL SERVICES OVERSIGHT COUNCIL MEETINGS AND COUNCIL GOVERNANCE.(a) Meetings- The Council shall meet as frequently as the Chairman deems necessary, but not less thanthe functions of the Council, including an advisory committee consisting of State regulators, and the members of such committees may be members of the Council, or other persons, or both. CommentsClose CommentsPermalink





(e) Meetings- CommentsClose CommentsPermalink





(1) TIMING- The Council shall meet at the call of the Chairperson or a majority of the members then serving, but not less frequently than quarterly. CommentsClose CommentsPermalink





(b2) RULES FOR CONDUCTING BUSINESS- The Council shall adopt such rules as may be necessary for the conduct of the business of the Council. Such rules shall be rules of agency organization, procedure, or practice for purposes ofsection 553 of title 5, United States Code. CommentsClose CommentsPermalink





(f) Voting- Unless otherwise providspecified, the Council shall make all decisions the Council is required or authorized to make by a majority of the total voting membership of the Council under section 1001(b)(1).SEC. 1005. COUNCIL STAFF AND FUNDING.

(a) Voting Members of the Council- The Secretary of the Treasury shall and all other voting members of the Council may, with the approval of the Council--

(1) detail permanent staff from the Department of the Treasury to provide the Council (and any temporarat it is authorized or required to make by a majority vote of the members then serving. CommentsClose CommentsPermalink




(g) Nonapplicability of FACA- The Federal Advisory Committee Act (5 U.S.C. App.) shall not apply to the Council, or to any special advisory, technical, or professional committees appointed by the Council) with professional and expert support; and

(2) provide such other services and facilities necessary for the performance of the Council’s functions and fulfillment of the duties and mission of the Council.

(b) Other Departments and Agencies- In addition to the assistance prescribed in subsection (a), departments and agencies of the United States may, with the approval of the Council--

(1) detail department or agency staff on a temporary basis to provide additional support to the Council ( appointed by the Council, except that, if an advisory, technical, or professional committee has one or more members who are not employees of or affiliated with the United States Government, the Council shall publish a list of the names of the members of such committee. CommentsClose CommentsPermalink




(h) Assistance From Federal Agencies- Any department or agency of the United States may provide to the Council and any special advisory, technical, or professional committees appointed by the Council); and(2) provide such services, and facilities as the other departments or agencies appointed by the Council, such services, funds, facilities, staff, and other support services as the Council may determine advisable. CommentsClose CommentsPermalink





(c) Staff Status; Council Funding-

(1) STATUS- Staff detailed to the Council by the Secretary of the Treasury and other United States departments or agencies shall--

(A) report to and be subject to oversight by the Council during their assignment to the Council; and

(B)i) Compensation of Members- CommentsClose CommentsPermalink




(1) FEDERAL EMPLOYEE MEMBERS- All members of the Council who are officers or employees of the United States shall serve without compensation in addition to that received for their services as officers or employees of the United States. CommentsClose CommentsPermalink





(2) COMPENSATION FOR NON-FEDERAL MEMBER-Section 5314 of title 5, United States Code, is amended by adding at the end the following: CommentsClose CommentsPermalink





‘Independent Member of the Financial Stability Oversight Council (1).’. CommentsClose CommentsPermalink





(j) Detail of Government Employees- Any employee of the Federal Government may be detailed to the Council without reimbursement, and such detail shall be without interruption or loss of civil service status or privilege. An employee of the Federal Government detailed to the Council shall report to and be subject to oversight by the Council during the assignment to the Council, and shall be compensated by the department of agency from which the staffr agency from which the employee was detailed. CommentsClose CommentsPermalink

SEC. 1006. REPORTS TO THE CONGRESS.

(a) In General- Semiannually the Council shall submit a report to the Committee on Ways and Means, the Committee on Agriculture, and the Committee on Financial Services of the House of Representatives and the Committee on Finance, the Committee on Agriculture, and the Committee on Banking, Housing, and Urban Affairs of the Senate, and the Comptroller General of the United States that--

(1) describes significant financial and regulatory developments, including insurance and accounting regulations and standards, and assesses the impact of those developments on the stability of the financial system;

(2) recommends actions that will improve financial stability;

(3) details the size, scale, scope, concentration, activities, and interconnectedness of the 50 largest financial institutions, by total assets, in the United States;

(4) describes strategies developed by the Council to respond to potential threats to the stability of the United States financial system and the outcome of exercises conducted in furtherance of those strategies;

(5) describes the nature and scope of any company or activities identified under subtitle B and steps taken to address them; and

(6) describes any dispute resolutions undertaken under section 1002 and the result of such resolutions.

(b) Evaluation of Annual Report by GAO- Not later than 120 days after receiving the report required by subsection (a), the Comptroller General of the United States shall submit an evaluation of such report to the Committee on Ways and Means, the Committee on Agriculture, and the Committee on Financial Services of the House of Representatives and the Committee on Finance, the Committee on Agriculture, and the Committee on Banking, Housing, and Urban Affairs of the Senate.

(c) Statements by Voting Members of the Council- At the time each report is submitted under subsection (a), each voting member of the Council shall--

(1) if such member believes that the Council, the Government, and the private sector are taking all reasonable steps to ensure financial stability and to prevent systemic risk that would negatively affect the economy, submit a signed statement to the Committee on Ways and Means, the Committee on Agriculture, and the Committee on Financial Services of the House of Representatives and the Committee on Finance, the Committee on Agriculture, and the Committee on Banking, Housing, and Urban Affairs of the Senate stating such belief; or

(2) if such member does not believe that all reasonable steps described under paragraph (1) are being taken, submit a signed statement to the Committee on Ways and Means, the Committee on Agriculture, and the Committee on Financial Services of the House of Representatives and the Committee on Finance, the Committee on Agriculture, and the Committee on Banking, Housing, and Urban Affairs of the Senate stating what actions such member believes need to be taken in order to ensure that all reasonable steps described under paragraph (1) are taken.

(d) Testimony by the Chairman- The Chairman of the Council shall appear before the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate at a semi-annual hearing, after the report is submitted under subsection12. COUNCIL AUTHORITY.

(a) --(1Purposes and Duties of the Council- CommentsClose CommentsPermalink





(1) IN GENERAL- The purposes of the Council are-- CommentsClose CommentsPermalink





(A) to identify risks to the financial stability of the United States that could arise from the material financial distress or failure of large, interconnected bank holding companies or nonbank financial companies; CommentsClose CommentsPermalink





(B) to discuss the efforts, activities, objectives, and plans of the Council; and(2promote market discipline, by eliminating expectations on the part of shareholders, creditors, and counterparties of such companies that the Government will shield them from losses in the event of failure; and CommentsClose CommentsPermalink





(C) to discuss and answer questions concerning such report.

(e) Study of Effects Consumer Financial Protection Agency Regulations and Standards-

(1) STUDY REQUIRED- The Council shall conduct a study of the effects that regulations and standards of the Consumer Financial Protection Agency will have on all covered persons (as such term is defined in section 4002(9)), including nondepository institution covered persons. The Director of the Consumer Financial Protection Agency shall take the findings of the study into account when issuing regulationrespond to emerging threats to the stability of the United States financial markets. CommentsClose CommentsPermalink




(2) VALUE OF NONBANK PRODUCTS- The study shall include an evaluation and assessmentDUTIES- The Council shall, in accordance with this title-- CommentsClose CommentsPermalink





(A) collect information from member agencies and other Federal and State financial regulatory agencies and, if necessary to assess risks to the United States financial system, direct the Office of Financial Research to collect information from bank holding companies and nonbank financial companies; CommentsClose CommentsPermalink





(B) provide direction to, and request data and analyses from, the Office of Financial Research to support the work of the Council; CommentsClose CommentsPermalink





(C) monitor the financial services marketplace in order to identify potential threats to the financial stability of the United States; CommentsClose CommentsPermalink





(D) facilitate information sharing and coordination among the member agencies and other Federal and State agencies regarding domestic financial services policy development, rulemaking, examinations, reporting requirements, and enforcement actions; CommentsClose CommentsPermalink





(E) recommend to the member agencies general supervisory priorities and principles reflecting the outcome of discussions among the member agencies; CommentsClose CommentsPermalink





(F) identify gaps in regulation that could pose risks to the financial stability of the United States; CommentsClose CommentsPermalink





(G) require supervision by the Board of Governors for nonbank financial companies that may pose risks to the financial stability of the United States in the event of their material financial distress or failure, pursuant to section 113; CommentsClose CommentsPermalink





(H) make recommendations to the Board of Governors concerning the establishment of heightened prudential standards for risk-based capital, leverage, liquidity, contingent capital, resolution plans and credit exposure reports, concentration limits, enhanced public disclosures, and overall risk management for nonbank financial companies and large, interconnected bank holding companies supervised by the Board of Governors; CommentsClose CommentsPermalink





(I) identify systemically important financial market utilities and payment, clearing, and settlement activities (as that term is defined in title VIII), and require such utilities and activities to be subject to standards established by the Board of Governors; CommentsClose CommentsPermalink





(J) make recommendations to primary financial regulatory agencies to apply new or heightened standards and safeguards for financial activities or practices that could create or increase risks of significant liquidity, credit, or other problems spreading among bank holding companies, nonbank financial companies, and United States financial markets; CommentsClose CommentsPermalink





(K) make determinations regarding exemptions in title VII, where necessary; CommentsClose CommentsPermalink





(L) provide a forum for-- CommentsClose CommentsPermalink





(i) discussion and analysis of emerging market developments and financial regulatory issues; and CommentsClose CommentsPermalink





(ii) resolution of jurisdictional disputes among the members of the appropriateness of using ‘APR’ as a true measure of the value of all nonbank products.(3) SUBMISSION- Not later than 240 days after the date of the enactment of this Act, the Director of the Consumer Financial Protection Agency shall submit the study to Congress and include any recommendations the Director may have for changes in law and regulationsCouncil; and CommentsClose CommentsPermalink





(M) annually report to and testify before Congress on-- CommentsClose CommentsPermalink





(i) the activities of the Council; CommentsClose CommentsPermalink





(ii) significant financial market developments and potential emerging threats to the financial stability of the United States; CommentsClose CommentsPermalink





(iii) all determinations made under section 113 or title VIII, and the basis for such determinations; and CommentsClose CommentsPermalink





(iv) recommendations-- CommentsClose CommentsPermalink





(I) to enhance the integrity, efficiency, competitiveness, and stability of United States financial markets; CommentsClose CommentsPermalink





(II) to improve consumer protections and maintain access to credit.SEC. 1007. APPLICABILITY OF CERTAIN FEDERAL LAWS.

(a) The Federal Advisory Committee Act shall not apply to the Financial Services Oversight Council, or any special advisory, technical, or professional committees appointed by the Council (except that, if an advisory, technical, or professional committee has one or more members who are not employees of or affiliated with the United States government, the Council shall publish a list of the names of the members of such committee).

(b) The Council shall not be deemed an ‘agency’ for purposes of any State or Federal law.

SEC. 1008. OVERSIGHT BY GAO.

(a) Authority to Audit- The Comptroller General of the United States may audit the activities and financial transactions of--

(1) the Council; and

(2) any person or entity acting on behalf of or under the authority of the Council, to the extent such activities and financial transactions relate to such person’s or entity’s work for the Council.

(b) Access topromote market discipline; and CommentsClose CommentsPermalink




(III) to maintain investor confidence. CommentsClose CommentsPermalink





(b) Authority To Obtain Information- CommentsClose CommentsPermalink





(1) IN GENERAL- Notwithstanding any other provision of law, the Comptroller General of the United States shall have access, upon request and at such reasonable time and in such reasonable form as the Comptroller GeneraThe Council may request, to--

(A) any records or other information under the control of or used by the Council;

(B) any records or other information under the control of a person or entity acting on behalf of or under the authority of the Council, to the extent such records or other information is relevant to an audit under subsection (a); and

(C) the officers, directors, employees, financial advisors, staff, working groups, and agents and representatives of the Council (as related to the agent’s or representative’s activities on behalf of the Council) at such reasonable times as the Comptroller General may request.

(2) CERTAIN INFORMATION SPECIFIED- Access under paragraph (1) includes access to--

(A) information provided to the Council by its voting and nonvoting members under section 1101; and

(B) the identity of each financial holding company subject to stricter standards.

(3) COPIES- Comptroller General may make and retain copies of such books, accounts, and other records access to which is granted under this provision as the Comptroller General considers appropriate.

(c) Periodic Evaluations- The Comptroller General of the United States shall periodically evaluate the processes and activities of the Council and the extent to which the Council is fulfilling its duties under this title. The Comptroller General shall submit to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate a report on the results of each such evaluation.

Subtitle B--Prudential Regulation of Companies and Activities for Financial Stability Purposes

SEC. 1100. FEDERAL RESERVE BOARD AUTHORITY THAT OF AGENT ACTING ON BEHALF OF COUNCIL.

For purposes of this subtitle, the Board of Governors of the Federal Reserve System shall act in the capacity of agent for the Council, acting on behalf of the Council.

SEC. 1101. COUNCIL AND BOARD AUTHORITY TO OBTAIN INFORMATION.(a) In General- The Council and the Board are authorized to receive, and may request the production of, any data or information from members of the Council, as necessary--(1submission of, any data or information from the Office of Financial Research and member agencies, as necessary-- CommentsClose CommentsPermalink




(A) to monitor the financial services marketplace to identify potential threats to the stability of the United States financial system;

(2) to identify global trends and developments that could pose systemic risks to the stability of the economy of the United States or other economies; or

(3risks to the financial stability of the United States; or CommentsClose CommentsPermalink




(B) to otherwise carry out any of the provisions of this title, including to ascertain a primary financial regulatory agency’s implementation of recommended prudential standards under this subtitle.

(b) Submission by Council Members- Notwithstanding any provision of law, any voting or nonvoting member of the Council is authorized to provide information to the Council, and the members of the Council shall maintain the confidentiality of such information.

(c) Financial Company Data Collection-

(1) IN GENERAL- The Council or the Board may require the . CommentsClose CommentsPermalink




(2) SUBMISSIONS BY THE OFFICE AND MEMBER AGENCIES- Notwithstanding any other provision of law, the Office of Financial Research and any member agency are authorized to submit information to the Council. CommentsClose CommentsPermalink





(3) FINANCIAL DATA COLLECTION- CommentsClose CommentsPermalink





(A) IN GENERAL- The Council, acting through the Office of Financial Research, may require the submission of periodic and other reports from any financial company solelnonbank financial company or bank holding company for the purpose of assessing the extent to which a financial activity or financial market in which the financial company participates, or the companynonbank financial company or bank holding company participates, or the nonbank financial company or bank holding company itself, poses a threat to financial stability.(2)the financial stability of the United States. CommentsClose CommentsPermalink





(B) MITIGATION OF REPORT BURDEN- Before requiring the submission of reports from financial companies that are regulated by the primary financial regulatory agencies, the Council or the Boardany nonbank financial company or bank holding company that is regulated by a member agency or any primary financial regulatory agency, the Council, acting through the Office of Financial Research, shall coordinate with such agencies and shall, whenever possible, rely on information already being collected by such agencies.

(3) MITIGATION REQUIREMENTS IN CASE OF FOREIGN FINANCIAL PARENTS- Before requiring the submission of reports from a company that is a foreign financial parent, the Council or the Board shall, to the extent appropriate, coordinate with any appropriate foreign regulator of such company and any appropriate multilateral organization and, whenever possible, rely on information already being collected by such foreign regulator or multilateral organizational with English translation.

(d) Consultation With Agencies and Entities- The Council or the Board, as appropriate, may consult with Federal and State agencies and other entities (including the Federal Insurance Office) to carry out any of the provisions of this subtitle.

(e) Additional Provisions-

(1) DATA AND INFORMATION SHARING- The Chairman of the Council, in consultation with the other members of the Council, may--

(A) establish procedures to share data and information collected by the Council under this section with the members of the Council;

(B) develop an electronic process for sharing all information collected by the Council with the Chairman of the Board on a real-time basis;

(C) issue any regulations necessary to carry out this subsection; and

(D) designate the format in which requested data and information must be submitted to the Council, including any electronic, digital, or other format that facilitates the use of such data by the Council in its analysis.

(2) APPLICABLE PRIVILEGES NOT WAIVED- A Federal financial regulator, State financial regulator, United States financial company, foreignvailable from the Office of Financial Research or such agencies. CommentsClose CommentsPermalink




(4) BACK-UP EXAMINATION BY THE BOARD OF GOVERNORS- If the Council is unable to determine whether the financial activities of a nonbank financial company pose a threat to the financial stability of the United States, based on information or reports obtained under paragraph (3), discussions with management, and publicly available information, the Council may request the Board of Governors, and the Board of Governors is authorized, to conduct an examination of the nonbank financial company for the sole purpose of determining whether the nonbank financial company operating in the United States, financial market utility, or other person shall not be compelled to waive and shall not be deemed to have waived any privilege otherwise applicable to any data or information by transferring the data or information to, or permitting that data or information to be used by--

(A) the Council;

(B) any Federal financial regulator or State financial regulator, in any capacity; or

(C) any other agency of the Federal Government (as defined in section 6 of title 18, United States Code).

(3) DISCLOSURE EXEMPTION- Any information obtained by the Council under this section shall be exempt from the disclosure requirements under section 552 of title 5, United States Code.

(4) CONSULTATION WITH FOREIGN GOVERNMENTS- Under the supervision ofshould be supervised by the Board of Governors for purposes of this title. CommentsClose CommentsPermalink




(5) CONFIDENTIALITY- CommentsClose CommentsPermalink





(A) IN GENERAL- The Council, the Office of Financial Research, and the other member agencies shall maintain the President, and in a manner consistent with section 207 of the Foreign Service Act of 1980 (22 U.S.C. 3927), the Chairman of the Council, in consultation with the other members of the Council, shall regularly consult with the financial regulatory entities and other appropriate organizations of foreign governments or international organizations on matters relating to systemic risk to the international financial system.

(5) REPORT- Not later than 6 months after the date of the enactment of this title, the Chairman of the Council shall report to the Financial Services Committee of the House of Representatives and the Banking, Housing, and Urban Affairs Committee of the Senate the opinion of the Council as to whether setting up an electronic database as described in paragraph (1)(B) would aid the Council in carrying out this section.

SEC. 1102. COUNCIL PRUDENTIAL REGULATION RECOMMENDATIONS TO FEDERAL FINANCIAL REGULATORY AGENCIES; AGENCY AUTHORITY.

(a) In General- The Council is authorized to issue formal recommendations, publicly or privately, that a Federal financial regulatory agency adopt stricter prudential standards for firms it regulates to mitigate systemic risk.

(b) Agency Authority to Implement Standards-

(1) A Federal financial regulatory agency specifically may, in response to a Council recommendation under this section or otherwise, impose, require reports regarding, examine for compliance with, and enforce stricter prudential standards and safeguards for the firms it regulates to mitigate systemic risk. This authority is in addition to and does not limit any other authority of the Federal financial regulatory agencies. Compliance by an entity with actions taken by a Federal financial regulatory agency under this section shall be enforceable in accordance with the statutes governing the respective Federal financial regulatory agency’s jurisdiction over the entity as if the agency action were taken under those statutes.

(2) APPLYING STANDARDS TO FOREIGN FINANCIAL PARENTS- In applying standards under paragraph (1) to any foreign financial parent, or to any branch of, subsidiary of, or other operating entity related to such foreign financial parent that operates within the United States, the Federal financial regulatory agency shall--

(A) give due regard to the principles of national treatment and equality of competitive opportunity; and

(B) take into account the extent to which the foreign financial parent is subject to comparable standards on a consolidated basis in the home country of such foreign financial parent that are administered by a comparable foreign supervisory authority.

(c) Agency Notice to Council- A Federal financial regulatory agency shall, within 60 days of receiving a Council recommendation under this section, notify the Council in writing regarding--

(1) the actions the Federal financial regulatory agency has taken in response to the Council’s recommendation, additional actions contemplated, and timetables therefore; or

(2) the reason the Federal financial regulatory agency has failed to respond to the Council’s requestconfidentiality of any data, information, and reports submitted under this subsection and subtitle B. CommentsClose CommentsPermalink




(B) RETENTION OF PRIVILEGE- The submission of any nonpublicly available data or information under this subsection and subtitle B shall not constitute a waiver of, or otherwise affect, any privilege arising under Federal or State law (including the rules of any Federal or State court) to which the data or information is otherwise subject. CommentsClose CommentsPermalink





(C) FREEDOM OF INFORMATION ACT-Section 552 of title 5, United States Code, including the exceptions thereunder, shall apply to any data or information submitted under this subsection and subtitle B. CommentsClose CommentsPermalink

SEC. 1103. SUBJECTING FINANCIAL COMPANIES TO STRICTER PRUDENTIAL STANDARDS FOR FINANCIAL STABILITY PURPOSES.

(a) In General- The Council shall, in consultation with the Board and any other primary financial regulatory agency that regulates the financial company or a subsidiary of such company, and, in the case of a financial holding company subject to stricter standards that is an insurance company, the Federal Insurance Office, subject a financial company to stricter prudential standards under this subtitle if the Council determines that--

(1) material financial distress at the company could pose a threat to financial stability or the economy; or

(2) the nature, scope, size, scale, concentration, and interconnectedness, or mix of the company’s activities c3. AUTHORITY TO REQUIRE SUPERVISION AND REGULATION OF CERTAIN NONBANK FINANCIAL COMPANIES.

(a) U.S. Nonbank Financial Companies Supervised by the Board of Governors- CommentsClose CommentsPermalink





(1) DETERMINATION- The Council, on a nondelegable basis and by a vote of not fewer than 2/3 of the members then serving, including an affirmative vote by the Chairperson, may determine that a U.S. nonbank financial company shall be supervised by the Board of Governors and shall be subject to prudential standards, in accordance with this title, if the Council determines that material financial distress at the U.S. nonbank financial company would pose a threat to financial stability or the economy.

(b) Criteria- In making a determination under subsection (a), the Council shall consider the following criteria:

(1) The extent of the company’s leverage.

(2) The extent and nature of the company’sthe financial stability of the United States. CommentsClose CommentsPermalink




(2) CONSIDERATIONS- Each determination under paragraph (1) shall be based on a consideration by the Council of-- CommentsClose CommentsPermalink





(A) the degree of leverage of the company; CommentsClose CommentsPermalink





(B) the amount and nature of the financial assets of the company; CommentsClose CommentsPermalink





(C) the amount and types of the liabilities of the company, including the degree of reliance on short-term funding; CommentsClose CommentsPermalink





(D) the extent and types of the off-balance -sheet exposures.(3) The extent and nature of the company’s of the company; CommentsClose CommentsPermalink





(E) the extent and types of the transactions and relationships with other financial companies.(4) The company’s importanceof the company with other significant nonbank financial companies and significant bank holding companies; CommentsClose CommentsPermalink





(F) the importance of the company as a source of credit for households, businesses, and State and local governments and as a source of liquidity for the financial system.

(5) The company’s importance as a source of credit for low-income, minority, or underserved communities and the impact the failure of such company would have on the availability of credit in such communities.

(6) The extent to which assets are simply managed and not owned by the financial company and the extent to which United States financial system; CommentsClose CommentsPermalink




(G) the recommendation, if any, of a member of the Council; CommentsClose CommentsPermalink





(H) the operation of, or ownership interest in, any clearing, settlement, or payment business of the company; CommentsClose CommentsPermalink





(I) the extent to which-- CommentsClose CommentsPermalink





(i) assets are managed rather than owned by the company; and CommentsClose CommentsPermalink





(ii) ownership of assets under management is diffuse.

(7) The nature, scope, and mix of the company’s activities.

(8) The degree to which the company is already regulated by one or more Federal financial regulatory agencies or, in the case of a foreign financial parent, the extent to which such foreign parent is subject to prudential standards on a consolidated basis in the home country of such financial parent that are administered and enforced by a comparable foreign supervisory authority.

(9) The amount and nature of the company’s financial assets.

(10) The amount and nature of the company’s liabilities, including the; and CommentsClose CommentsPermalink




(J) any other factors that the Council deems appropriate. CommentsClose CommentsPermalink





(b) Foreign Nonbank Financial Companies Supervised by the Board of Governors- CommentsClose CommentsPermalink





(1) DETERMINATION- The Council, on a nondelegable basis and by a vote of not fewer than 2/3 of the members then serving, including an affirmative vote by the Chairperson, may determine that a foreign nonbank financial company that has substantial assets or operations in the United States shall be supervised by the Board of Governors and shall be subject to prudential standards in accordance with this title, if the Council determines that material financial distress at the foreign nonbank financial company would pose a threat to the financial stability of the United States. CommentsClose CommentsPermalink





(2) CONSIDERATIONS- Each determination under paragraph (1) shall be based on a consideration by the Council of-- CommentsClose CommentsPermalink





(A) the degree of leverage of the company; CommentsClose CommentsPermalink





(B) the amount and nature of the United States financial assets of the company; CommentsClose CommentsPermalink





(C) the amount and types of the liabilities of the company used to fund activities and operations in the United States, including the degree of reliance on short-term funding.(11) A; CommentsClose CommentsPermalink





(D) the extent of the United States-related off-balance-sheet exposure of the company; CommentsClose CommentsPermalink





(E) the extent and type of the transactions and relationships of the company with other significant nonbank financial companies and bank holding companies; CommentsClose CommentsPermalink





(F) the importance of the company as a source of credit for United States households, businesses, and State and local governments, and as a source of liquidity for the United States financial system; CommentsClose CommentsPermalink





(G) the recommendation, if any, of a member of the Council; CommentsClose CommentsPermalink





(H) the extent to which-- CommentsClose CommentsPermalink





(i) assets are managed rather than owned by the company; and CommentsClose CommentsPermalink





(ii) ownership of assets under management is diffuse; and CommentsClose CommentsPermalink





(I) any other factors that the Council deems appropriate. CommentsClose CommentsPermalink





(c) Notification of Decision- The Board, in an executive capacity on behalf of the Council, shall immediately upon the Council’s decision notify the financial company by order, which shall be public, that the financial company is subject to stricter prudential standards, as prescribed by the Board in accordance with section 1104.

(d) Periodic Review and Rescission of Findings-

(1) SUBMISSION OF ASSESSMENT- The Board shall periodically submit a report to the Council containing an assessment of whether each company subjected to stricter prudential standards should continue to be subject to such standards.

(2) REVIEW AND RESCISSION- The Council shall--

(A) review the assessment submitted pursuant to paragraph (1) and any information or recommendation submitted by members of the Council regarding whether a financial holding company subject to stricter standards continues to merit stricter prudential standards; and

(B) rescind the action subjecting a company to stricter prudential standards if the Council determines that the company no longer meets the conditions for being subjected to stricter prudential standards in subsections (a) and (b).

(e) AppealAnti-evasion- CommentsClose CommentsPermalink




(1) ADMINISTRATIVE- The Council and the Board, in an executive capacity on behalf of the Council, shall establish a procedure through which a financial company that has been subjected to stricter prudential standards in accordance with this section may appeal being subjected to stricter prudential standardsDETERMINATIONS- In order to avoid evasion of this Act, the Council, on its own initiative or at the request of the Board of Governors, may determine, on a nondelegable basis and by a vote of not fewer than 2/3 of the members then serving, including an affirmative vote by the Chairperson, that-- CommentsClose CommentsPermalink





(A) material financial distress related to financial activities conducted directly or indirectly by a company incorporated or organized under the laws of the United States or any State or the financial activities in the United States of a company incorporated or organized in a country other than the United States would pose a threat to the financial stability of the United States based on consideration of the factors in subsection (b)(2); CommentsClose CommentsPermalink





(B) the company is organized or operates in such a manner as to evade the application of this title; CommentsClose CommentsPermalink





(C) such financial activities of the company shall be supervised by the Board of Governors and subject to prudential standards in accordance with this title consistent with paragraph (2); and CommentsClose CommentsPermalink





(D) upon making a determination under subsection (c)(1), the Council shall submit a report to the appropriate committees of Congress detailing the reasons for making such determination under this subsection. CommentsClose CommentsPermalink





(2) Consolidated supervision of only financial activities; Establishment of an intermediate holding company. CommentsClose CommentsPermalink





(A) ESTABLISHMENT OF AN INTERMEDIATE HOLDING COMPANY- Upon a determination under paragraph (1), the company may establish an intermediate holding company in which the financial activities of such company and its subsidiaries will be conducted (other than the activities described in section 167(b)(2) in compliance with any regulations or guidance provided by the Board of Governors). Such intermediate holding company shall be subject to the supervision of the Board of Governors and to prudential standards under this title as if the intermediate holding company is a nonbank financial company supervised by the Board of Governors. CommentsClose CommentsPermalink





(B) ACTION OF THE BOARD OF GOVERNORS- To facilitate the supervision of the financial activities subject to the determination in paragraph (1), the Board of Governors may require a company to establish an intermediate holding company, as provided for in section 167, which would be subject to the supervision of the Board of Governors and to prudential standards under this title as if the intermediate holding company is a nonbank financial company supervised by the Board of Governors. CommentsClose CommentsPermalink





(3) NOTICE AND OPPORTUNITY FOR HEARING AND FINAL DETERMINATION; JUDICIAL REVIEW- Any financial company which has been subjected to stricter prudential standards may seek judicial review by filing a petition for such review in the United States Court of Appeals for the District of Columbia.

(f) Effect of Council Decision-

(1) APPLICATION OF FEDERAL LAWS-

(A) APPLICATION OF BANK HOLDING COMPANY ACT AND FEDERAL DEPOSIT INSURANCE ACT- A financial company subject to stricter standards that does not own a bank (as defined in section 2 of the Bank Holding Company Act of 1956) and that is not a foreign bank or company that is treated as a bank holding company under section 8 of the International Banking Act of 1978 shall be subject to section 4, subsections (b), (c),Subsections (d), (e), (f), and (g) of section 5, and section 8 of the Bank Holding Company Act of 1956, and section 8 of the Federal Deposit Insurance Act in the same manner and to the same extent as if such financial holding company subject to stricter standards were a bank holding company that has elected to be a financial holding company (as such terms are defined in the Bank Holding Company Act of 1956), its subsidiaries were subsidiaries of a bank holding company, and the Board was its appropriate Federal banking agency (as such term is defined under the Federal Deposit Insurance Act).

(B) BOARD AUTHORITY- For purposes of administering and enforcing the provisions of this title, the Board may take any action with respect to a financial holding company subject to stricter standards described in subparagraph (A) or its subsidiaries under the authorities described in subparagraph (A) as if such financial holding company subject to stricter standards were a bank holding company that has elected to be a financial holding company (as such terms are defined in the Bank Holding Company Act of 1956), its subsidiaries were subsidiaries of a bank holding company, and the Board was its appropriate Federal banking agency (as such term is defined under the Federal Deposit Insurance Act).

(2) APPLICATION OF ACTIVITY RESTRICTIONS AND SECTION 6 HOLDING COMPANY REQUIREMENTS-

(A) IN GENERAL- Except as provided in subparagraphs (B) and (C)--

(i) a financial holding company subject to stricter standards that conducts activities that do not comply with section 4 of the Bank Holding Company Act shall be required to establish or designate a section 6 holding company in accordance with section 6 of the Bank Holding Company Act of 1956 through which it conducts activities of the company that are determined to be financial in nature or incidental thereto under section 4(k) of the such Act; and

(ii) such section 6 holding company shall be the financial holding company subject to stricter standards for purposes of this title.

(B) EXCEPTIONS FROM SECTION 6 HOLDING COMPANY REQUIREMENTS-

(i) GENERAL REQUIREMENT FOR BOARD TO CONSIDER EXCEPTIONS- Before such time as a financial holding company subject to stricter standards is required to establish or designate a section 6 holding company under section 6 of the Bank Holding Company Act, and in consultation with the financial holding company subject to stricter standards and any appropriate Federal or State financial regulators (and, in the case of a financial holding company subject to stricter standards that is an insurance company, the Federal Insurance Office)--

(I) the Board shall consider whether to grant any of the exemptions from the requirements applicable to section 6 holding companies under section 6(a)(6)(A) of the Bank Holding Company Act of 1956, in accordance with that provision; and

(II) the Board, at the request of a financial holding company subject to stricter standards that is predominantly engaged in activities that are determined to be financial in nature or incidental thereto under section 4(k) of the Bank Holding Company Act, shall consider whether to exempt the financial holding company subject to stricter standards from the requirement to establish a section 6 holding company, taking into consideration paragraph (2)(D), and the extent to which the exemption would: facilitate the extension of credit to individuals, households and businesses; improve efficiency or customer service or result in other public benefits; potentially threaten the safety and soundness of the financial holding company or any of its subsidiaries; potentially increase systemic risk or threaten the stability of the overall financial system; potentially result in unfair competition; and potentially have anticompetitive effects that would not be outweighed by public benefits.

(ii) BOARD DETERMINATION NOT TO EXEMPT-

(I) IN GENERAL- If the Board determines not to exempt the financial holding company subject to stricter standards from the requirement to establish a section 6 holding company, the financial holding company subject to stricter standards shall establish a section 6 holding company within 90 days after the Board’s determination.

(II) EXTENSION OF PERIOD- The Board may extend the time by which the financial holding company subject to stricter standards is required to establish a section 6 holding company for an additional reasonable period of time, not to exceed 180 days.

(iii) BOARD DETERMINATION TO EXEMPT-

(I) IN GENERAL- If the Board grants the requested exemption from the requirement to establish a section 6 holding company, the financial holding company subject to stricter standards shall at all times remain predominantly engaged in activities that are determined to be financial in nature or incidental thereto underf), and (g) shall apply to determinations made by the Council pursuant to paragraph (1) in the same manner as such subsections apply to nonbank financial companies. CommentsClose CommentsPermalink




(4) COVERED FINANCIAL ACTIVITIES- For purposes of this subsection, the term ‘financial activities’ means activities that are financial in nature (as defined in section 4(k) of the Bank Holding Company Act of 1956, and shall be the financial holding company subject to stricter standards for purposes of this title.

(II) SUBSEQUENT LOSS OF EXEMPTION- Upon a determination by the Board, in consultation with any relevant Federal or State regulators of the financial holding company subject to stricter standards, and, in the case of a financial holding company subject to stricter standards that is an insurance company, the Federal Insurance Office, that the financial holding company subject to stricter standards fails to comply with this subsection, the financial holding company subject to stricter standards shall lose the exemption from the section 6 holding company requirement and shall establish a section 6 holding company within the time periods described in clause (ii)(I).

(C)) and include the ownership or control of one or more insured depository institutions and shall not include internal financial activities conducted for the company or any affiliates thereof including internal treasury, investment, and employee benefit functions. CommentsClose CommentsPermalink




(5) ONLY FINANCIAL ACTIVITIES CONDUCTED ABROAD- Section 4 of the Bank Holding Company Act of 1956 shall not apply to any activities that a foreign financial holding company subject to stricter standards conducts solely outside the United States if such activities are conducted solely by a company or other entity that is located outside the United States.(D) FLEXIBLE APPLICATION- In applying the activity restrictions and ownership limitations of section 4 of the Bank Holding Company Act of 1956 to financial holding companies subject to stricter standards described in paragraph (1)(A), the Board shall flexibly adapt such requirements taking into account the usual and customary practices in the business sector of the financial company subject to stricter standards so as to avoid unnecessary burden and expenseSUBJECT TO PRUDENTIAL SUPERVISION- Nonfinancial activities of the company shall not be subject to supervision by the Board of Governors and prudential standards of the Board. For purposes of this Act, the financial activities that are the subject of the determination in paragraph (1) shall be subject to the same requirements as a nonbank financial company. Nothing in this paragraph shall prohibit or limit the authority of the Board of Governors to apply prudential standards under this title to the financial activities that are subject to the determination in paragraph (1). CommentsClose CommentsPermalink





(d) Reevaluation and Rescission- The Council shall-- CommentsClose CommentsPermalink





(1) not less frequently than annually, reevaluate each determination made under subsections (a) and (b) with respect to each nonbank financial company supervised by the Board of Governors; and CommentsClose CommentsPermalink





(2) rescind any such determination, if the Council, by a vote of not fewer than 2/3 of the members then serving, including an affirmative vote by the Chairperson, determines that the nonbank financial company no longer meets the standards under subsection (a) or (b), as applicable. CommentsClose CommentsPermalink





(e) Notice and Opportunity for Hearing and Final Determination- CommentsClose CommentsPermalink





(1) IN GENERAL- The Council shall provide to a nonbank financial company written notice of a proposed determination of the Council, including an explanation of the basis of the proposed determination of the Council, that such nonbank financial company shall be supervised by the Board of Governors and shall be subject to prudential standards in accordance with this title. CommentsClose CommentsPermalink





(2) HEARING- Not later than 30 days after the date of receipt of any notice of a proposed determination under paragraph (1), the nonbank financial company may request, in writing, an opportunity for a written or oral hearing before the Council to contest the proposed determination. Upon receipt of a timely request, the Council shall fix a time (not later than 30 days after the date of receipt of the request) and place at which such company may appear, personally or through counsel, to submit written materials (or, at the sole discretion of the Council, oral testimony and oral argument). CommentsClose CommentsPermalink





(3) LEVERAGE LIMITATION- The Board shall require each financial holding company subject to stricter standards to maintain a debt to equity ratio of no more than 15 to 1, and the Board shall issue regulations containing procedures and timelines for how a financial holding company subject to stricter standards with a debt to equity ratio of more than 15 to 1 at the time such FINAL DETERMINATION- Not later than 60 days after the date of a hearing under paragraph (2), the Council shall notify the nonbank financial company of the final determination of the Council, which shall contain a statement of the basis for the decision of the Council. CommentsClose CommentsPermalink





(4) NO HEARING REQUESTED- If a nonbank financial company does not make a timely request for a hearing, the Council shall notify the nonbank financial company, in writing, of the final determination of the Council under subsection (a) or (b), as applicable, not later than 10 days after the date by which the company may request a hearing under paragraph (2). CommentsClose CommentsPermalink





(f) Emergency Exception- CommentsClose CommentsPermalink





(1) IN GENERAL- The Council may waive or modify the requirements of subsection (d) with respect to a nonbank financial company, if the Council determines, by a vote of not fewer than 2/3 of the members then serving, including an affirmative vote by the Chairperson, that such waiver or modification is necessary or appropriate to prevent or mitigate threats posed by the nonbank financial company to the financial stability of the United States. CommentsClose CommentsPermalink





(2) NOTICE- The Council shall provide notice of a waiver or modification under this paragraph to the nonbank financial company becomes a financial holding company subject to stricter standards shall reduce such ratioconcerned as soon as practicable, but not later than 24 hours after the waiver or modification is granted. CommentsClose CommentsPermalink





(3) OPPORTUNITY FOR HEARING- The Council shall allow a nonbank financial company to request, in writing, an opportunity for a written or oral hearing before the Council to contest a waiver or modification under this paragraph, not later than 10 days after the date of receipt of notice of the waiver or modification by the company. Upon receipt of a timely request, the Council shall fix a time (not later than 15 days after the date of receipt of the request) and place at which the nonbank financial company may appear, personally or through counsel, to submit written materials (or, at the sole discretion of the Council, oral testimony and oral argument). CommentsClose CommentsPermalink





(4) NOTICE OF FINAL DETERMINATION- Not later than 30 days after the date of any hearing under paragraph (3), the Council shall notify the subject nonbank financial company of the final determination of the Council under this paragraph, which shall contain a statement of the basis for the decision of the Council. CommentsClose CommentsPermalink





(g) Consultation- The Council shall consult with the primary financial regulatory agency, if any, for each nonbank financial company or subsidiary of a nonbank financial company that is being considered for supervision by the Board of Governors under this section before the Council makes any final determination with respect to such nonbank financial company under subsection (a), (b), or (c). CommentsClose CommentsPermalink





(h) Judicial Review- If the Council makes a final determination under this section with respect to a nonbank financial company, such nonbank financial company may, not later than 30 days after the date of receipt of the notice of final determination under subsection (d)(3) or (e)(4), bring an action in the United States district court for the judicial district in which the home office of such nonbank financial company is located, or in the United States District Court for the District of Columbia, for an order requiring that the final determination be rescinded, and the court shall, upon review, dismiss such action or direct the final determination to be rescinded. Review of such an action shall be limited to whether the final determination made under this section was arbitrary and capricious. CommentsClose CommentsPermalink

SEC. 1104. STRICTER PRUDENTIAL STANDARDS FOR CERTAIN FINANCIAL HOLDING COMPANIES FOR FINANCIAL STABILITY PURPOSES.(a) Stricter4. REGISTRATION OF NONBANK FINANCIAL COMPANIES SUPERVISED BY THE BOARD OF GOVERNORS.

(a) In General- CommentsClose CommentsPermalink





(1) PURPOSE- In order to prevent or mitigate risks to the financial stability of the United States that could arise from the material financial distress or failure of large, interconnected financial institutions, the Council may make recommendations to the Board of Governors concerning the establishment and refinement of prudential standards and reporting and disclosure requirements applicable to nonbank financial companies supervised by the Board of Governors and large, interconnected bank holding companies, that-- CommentsClose CommentsPermalink





(A) are more stringent than those applicable to other nonbank financial companies and bank holding companies that do not present similar risks to the financial stability of the United States; and CommentsClose CommentsPermalink





(B) increase in stringency, based on the considerations identified in subsection (b)(3). CommentsClose CommentsPermalink





(2) LIMITATION ON BANK HOLDING COMPANIES- Any standards recommended under subsections (b) through (f) shall not apply to any bank holding company with total consolidated assets of less than $50,000,000,000. The Council may recommend an asset threshold greater than $50,000,000,000 for the applicability of any particular standard under those subsections. CommentsClose CommentsPermalink





(b) Development of Prudential Standards- CommentsClose CommentsPermalink





(1) IN GENERAL- To mitigate risks to financial stability and the economy posed by a financial holding company that has been subjected to stricter prudential standards in accordance with section 1103, the Board, as agent of the Council, shall impose stricter prudential standards on such company. Such standards shall be designed to maximize financial stability taking costs to long-term financial and economic growth into account, be heightened when compared to the standards that otherwise would apply to financial holding companies that are not subjected to stricter prudential standards pursuant to this subtitle (including by addressing additional or different types of risks than otherwise applicable standards), and reflect the potential risk posed to financial stability by the financial holding company subject to stricter standards.

(2) STANDARDS-

(A) REQUIRED STANDARDS- The stricter standards imposed by the Board under this section shall include--

(i) risk-based capital requirements andhe recommendations of the Council under subsection (a) may include-- CommentsClose CommentsPermalink




(A) risk-based capital requirements; CommentsClose CommentsPermalink





(B) leverage limits, unless the Board determines that such requirements are not appropriate for a financial holding company subject to stricter standards because of such company’s activities (such as investment company activities or assets under management) or structure, in which case the Board shall apply other standards that result in appropriately stringent controls.(ii; CommentsClose CommentsPermalink





(C) liquidity requirements; CommentsClose CommentsPermalink





(iii) concentration requirements (as specified in subsection (c));

(iv) prompt corrective action requirements (as specified in subsection (e));

(v) resolution plan requirements (as specified in subsection (f)); and

(viD) resolution plan and credit exposure report requirements; CommentsClose CommentsPermalink




(E) concentration limits; CommentsClose CommentsPermalink





(F) a contingent capital requirement; CommentsClose CommentsPermalink





(G) enhanced public disclosures; and CommentsClose CommentsPermalink





(H) overall risk management requirements. CommentsClose CommentsPermalink





(B) ADDITIONAL STANDARDS- The heightened standards imposed by the Board under this section also may include short-term debt limits prescribed in accordance with subsection (d) and any other prudential standards that the Board deems advisable, including taking actions to mitigate systemic risk.

(C) CONSULTATION WITH FEDERAL FINANCIAL REGULATORY AGENCIES AND THE FEDERAL INSURANCE OFFICE- The Board, in developing stricter prudential standards under this subsection, shall consult with other Federal financial regulatory agencies with respect to any standard that is likely to have a significant impact on a functionally regulated subsidiary, or a subsidiary depository institution, of a financial holding company that is subject to stricter prudential standards under this title. With respect to a financial holding company subject to stricter standards that is an insurance company or any insurance company subsidiary of such a financial holding company subject to stricter standards, the Board shall also consult with the Federal Insurance Office.

(3) APPLICATION OF REQUIRED STANDARDS- In imposing prudential standards under this section, the Board--

(A) may differentiate among financial holding companies subject to stricter standards on an individual basis or by category, taking into consideration their capital structure, risk, complexity, financial activities, the financial activities of their subsidiaries, and any other factors that the Board deems appropriate; and

(B) shall take into consideration whether and to what extent a financial holding company subject to stricter standards that is not a bank holding company or treated as a bank holding company owns or controls a depository institution and shall adapt the prudential standards applied to such company as appropriate in light of any predominant line of business of such company, including assets under management or other activities for which capital requirements are not appropriate.

(4) WELL CAPITALIZED AND WELL MANAGED- A financial holding company subject to stricter standards shall at all times after it is subject to such standards be well capitalized and well managed as defined by the Board.

(5) APPLICATION TO2) PRUDENTIAL STANDARDS FOR FOREIGN FINANCIAL COMPANIES- The Board shall prescribe regulations regarding the application of stricter prudential standards to a foreign financial parent and to a Federal or State branch, subsidiary, or operating entity that is owned or controlled by a foreign financial parent, giving due regard to principlesIn making recommendations concerning the standards set forth in paragraph (1) that would apply to foreign nonbank financial companies supervised by the Board of Governors or foreign-based bank holding companies, the Council shall give due regard to the principle of national treatment and equality of competitive opportunity and taking into account the extent to which the foreign financial parent is subject on a consolidated basis to home country standards comparable to those applied to financial holding companies in the United States.

(6) INCLUSION OF OFF BALANCE SHEET ACTIVITIES IN COMPUTING CAPITAL REQUIREMENTS-

(A) IN GENERAL- In the case of any financial holding company subject to stricter standards, the computation of capital requirements shall take into account off balance sheet activities for such a company.

(B) EXEMPTION- If the Board determines that an exemption from the requirements under subparagraph (A) is appropriate, the Board may exempt a financial holding company subject to stricter standards from the requirements under subparagraph (A) or any transaction or transactions engaged in by such a company.

(C) OFF BALANCE SHEET ACTIVITIES DEFINED- For purposes of this paragraph, the term ‘off balance sheet activities’ means a liability that is not currently a balance sheet liability but may become one upon the happening of some future event, including the following transactions, to the extent they may create a liability:

(i) Direct credit substitutes in which a bank substitutes its own credit for a third party, including standby letters of credit.

(ii) Irrevocable letters of credit that guarantee repayment of commercial paper or tax-exempt securities.

(iii) Risk participation in bankers’ acceptances.

(iv) Sale and repurchase agreements.

(v) Asset sales with recourse against the seller.

(vi) Interest rate swaps.

(vii) Credit swaps.

(viii) Commodity contracts.

(ix) Forward contracts.

(x) Securities contracts.

(xi) Such other activities or transactions as the Board may, by rule, define.

(b) Prudential Standards at Functionally Regulated Subsidiaries and Subsidiary Depository Institutions-

(1) BOARD AUTHORITY TO RECOMMEND STANDARDS- With respect to a functionally regulated subsidiary (as such term is defined in section 5 of the Bank Holding Company Act) or a subsidiary depository institution of a financial holding company subject to stricter standards, the Board may recommend that the relevant Federal financial regulatory agency for such functionally regulated subsidiary or subsidiary depository institution prescribe stricter prudential standards on such functionally regulated subsidiary or subsidiary depository institution. Any standards recommended by the Board under this section shall be of the same type as those described in subsection (a)(2) that the Board is required or authorized to impose directly on the financial holding company subject to stricter standards.

(2) AGENCY AUTHORITY TO IMPLEMENT HEIGHTENED STANDARDS AND SAFEGUARDS- Each Federal financial regulatory agency that receives a Board recommendation under paragraph (1) is authorized to impose, require reports regarding, examine for compliance with, and enforce standards under this subsection with respect to the entities such agency regulates as described in section 1006(b)(6). This authority is in addition to and does not limit any other authority of the Federal financial regulatory agencies. Compliance by an entity with actions taken by a Federal financial regulatory agency under this section shall be enforceable in accordance with the statutes governing the respective agency’s jurisdiction over the entity as if the agency action were taken under those statutes.

(3) IMPOSITION OF STANDARDS- Standards imposed by a Federal financial regulatory agency under this subsection shall be the standards recommended by the Board in accordance with paragraph (1) or any other similar standards that the Board deems acceptable after consultation between the Board and the primary financial regulatory agency and, with respect to an insurance company, the Federal Insurance Office.

(4) FEDERAL FINANCIAL REGULATORY AGENCY RESPONSE; NOTICE TO COUNCIL AND BOARD- A Federal financial regulatory agency shall notify the Council and the Board in writing on whether and to what extent the agency has imposed the stricter prudential standards described in paragraphcompetitive equity. CommentsClose CommentsPermalink




(3) within 60 days of the Board’s recommendation under paragraph (1). A Federal financial regulatory agency that fails to impose such standards shall provide specific justification for such failure to act in the written notice from the agency to the Council and Board.

(c) Concentration Limits for Financial Holding Companies Subject to Stricter Standards-

(1) STANDARDS- In order to limit the risks that the failure of any company could pose to a financial holding company subject to stricter standards and to the stability of the United States financial system, the Board, by regulation, shall prescribe standards that limit the risks posed by the exposure of a financial holding company subject to stricter standards to any other company.

(2) LIMITATION ON CREDIT EXPOSURE- The regulations prescribed by the Board shall prohibit each financial holding company subject to stricter standards from having credit exposure to any unaffiliated company that exceeds 25 percent of capital stockCONSIDERATIONS- In making recommendations concerning prudential standards under paragraph (1), the Council shall-- CommentsClose CommentsPermalink




(A) take into account differences among nonbank financial companies supervised by the Board of Governors and bank holding companies described in subsection (a), based on-- CommentsClose CommentsPermalink





(i) the factors described in subsections (a) and (b) of section 113; CommentsClose CommentsPermalink





(ii) whether the company owns an insured depository institution; CommentsClose CommentsPermalink





(iii) nonfinancial activities and surplus of the financial holding company subject to stricter standards, or such lower amount as the Board may determine by regulation to be necessary to mitigate risks to financial stability.

(3) CREDIT EXPOSURE- For purposes of this subsection and with respect to a financial holding company subject to stricter standards, the term ‘credit exposure’ to a company means--

(A) all extensions of credit to the company, including loans, deposits, and lines of credit;

(B) all repurchase agreements and reverse repurchase agreement with the company;

(C) all securities borrowing and lending transactions with the company to the extent that such transactions create credit exposure of the financial holding company subject to stricter standards to the company;

(D) all guarantees, acceptances, or letters of credit (including endorsement or standby letters of credit) issued on behalf of the company;

(E) all purchases of or investment in securities issued by the company;

(F) counterparty credit exposure to the company in connection with a derivative transaction between the financial holding company subject to stricter standards andaffiliations of the company; and CommentsClose CommentsPermalink




(G) any other similar transactions that the Board by regulation determines to be a credit exposure for purposes of this section.

(4) ATTRIBUTION RULE- For purposes of this subsection, any transaction by a financial holding company subject to stricter standards with any person is deemed a transaction with a company to the extent that the proceeds of the transaction are used for the benefit of, or transferred to, that company.

(5) RULEMAKING- The Board may issue such regulations and orders, including definitions consistent with this subsection, as may be necessary to administer and carry out the purpose of this subsection.

(6) EXEMPTIONS-

(A) IN GENERAL-

(i) FEDERAL HOME LOAN BANKS- This subsection shall not apply to any Federal home loan bank, but Federal home loan banks are not exempt from any other provision of this title except as specifically provided in this title.

(ii) APPLICABILITY TO OTHER ENTITIES- The Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation are not exempt from any provision of this title except as specifically provided in this title.

(B) REGULATIONS- The Board may, by regulation or order, exempt transactions, in whole or in part, from the definition of credit exposure if it finds that the exemption is in the public interest and consistent with the purpose of this subsection.

(7) TRANSITION PERIOD- This subsection and any regulations and orders of the Board under the authority of this subsection shall not take effect until the date that is 3 years from the date of the enactment of this subsection. The Board may extend the effective date for up to 2 additional years to promote financial stability.

(d) Short-term Debt Limits for Certain Financial Holding Companies-

(1) IN GENERAL- In order to limit the risks that an overaccumulation of short-term debt could pose to financial holding companies and to the stability of the United States financial system, the Board may by regulation prescribe a limit on the amount of short-term debt, including off-balance sheet exposures, that may be accumulated by any financial holding company subject to stricter standards for purposes of this title.

(2) BASIS OF LIMIT- Any limit prescribed under paragraph (1) shall be based on a financial holding company’s short-term debt as a percentage of its capital stock and surplus or on such other measure as the Board considers appropriate.

(3) SHORT-TERM DEBT DEFINED- For purposes of this subsection, the term ‘short-term debt’ means such liabilities with short-dated maturity that the Board identifies by regulation, except that such term does not include insured deposits.

(4) RULEMAKING AUTHORITY- In addition to prescribing regulations under paragraphs (1) and (3), the Board may prescribe such regulations, including definitions consistent with this subsection, and issue such orders as may be necessary to carry out this subsection.

(5) AUTHORITY TO ISSUE EXEMPTIONS AND ADJUSTMENTS- Notwithstanding the Bank Holding Company Act of 1956 (12 U.S.C. 1841 et seq.), the Board may, if it determines such action is necessary to ensure appropriate heightened prudential supervision, with respect to a financial holding company that does not control an insured depository institution, issue to such company an exemption from or adjustment to the limit prescribed under paragraph (1).

(e) Prompt Corrective Action for Financial Holding Companies Subject to Stricter Standardsiv) any other factors that the Council determines appropriate; and CommentsClose CommentsPermalink




(B) to the extent possible, ensure that small changes in the factors listed in subsections (a) and (b) of section 113 would not result in sharp, discontinuous changes in the prudential standards established under paragraph (1). CommentsClose CommentsPermalink





(c) Contingent Capital- CommentsClose CommentsPermalink





(1) PROMPT CORRECTIVE ACTION REQUIRED- The Board shall take prompt corrective action to resolve the problems of financial holding companies subject to stricter standards. Except as specifically provided otherwise, this subsection shall apply only to financial holding companies that are incorporated or organized under United States laws.

(2) DEFINITIONS- For purposes of this section--

(A) CAPITAL CATEGORIES-

(i) WELL CAPITALIZED- A financial holding company subject to stricter standards is ‘well capitalized’ if it exceeds the required minimum level for each relevant capital measure.

(ii) UNDERCAPITALIZED- A financial holding company subject to stricter standards is ‘undercapitalized’ if it fails to meet the required minimum level for any relevant capital measure.

(iii) SIGNIFICANTLY UNDERCAPITALIZED- A financial holding company subject to stricter standards is ‘significantly undercapitalized’ if it is significantly below the required minimum level for any relevant capital measure. The Board shall define by rule or regulation the term ‘significantly undercapitalized’ at a threshold the Board determines to be prudent for the effective monitoring, management and oversight of the financial system.

(iv) CRITICALLY UNDERCAPITALIZED- A financial holding company subject to stricter standards is ‘critically undercapitalized’ if it fails to meet any level specified in paragraph (4)(C)(i).

(3) OTHER DEFINITIONS-

(A) AVERAGE- The ‘average’ of an accounting item (such as total assets or tangible equity) during a given period means the sum of that item at the close of business on each business day during that period divided by the total number of business days in that period.

(B) CAPITAL DISTRIBUTION- The term ‘capital distribution’ means--

(i) a distribution of cash or other property by a financial holding company subject to stricter standards to its owners made on account of that ownership, but not including any dividend consisting only of shares of the financial holding company subject to stricter standards or rights to purchase such shares;

(ii) a payment by a financial holding company subject to stricter standards to repurchase, redeem, retire, or otherwise acquire any of its shares or other ownership interests, including any extension of credit to finance any person’s acquisition of those shares or interests; and

(iii) a transaction that the Board determines, by order or regulation, to be in substance a distribution of capital toSTUDY REQUIRED- The Council shall conduct a study of the owners of the financial holding company subject to stricter standards.

(C) CAPITAL RESTORATION PLAN- The term ‘capital restoration plan’ means a plan submitted under paragraph (6)(B).

(D) COMPENSATION- The term ‘compensation’ includes any payment of money or provision of any other thing of value in considerationfeasibility, benefits, costs, and structure of a contingent capital requirement for nonbank financial companies supervised by the Board of Governors and bank holding companies described in subsection (a), which study shall include-- CommentsClose CommentsPermalink




(A) an evaluation of the degree to which such requirement would enhance the safety and soundness of companies subject to the requirement, promote the financial stability of the United States, and reduce risks to United States taxpayers; CommentsClose CommentsPermalink





(B) an evaluation of the characteristics and amounts of employment.

(E) RELEVANT CAPITAL MEASURE- The term ‘relevant capital measure’ means the measures described in paragraph (4).

(F) REQUIRED MINIMUM LEVEL- The term ‘required minimum level’ means, with respect to each relevant capital measure, the minimum acceptable capital level specified by the Board by regulation.

(G) SENIOR EXECUTIVE OFFICER- The term ‘senior executive officer’ has the same meaning as the term ‘executive officer’ in section 22(h) of the Federal Reserve Act (12 U.S.C. 375b).

(4) CAPITAL STANDARDS-

(A) RELEVANT CAPITAL MEASURES-

(i) IN GENERAL- Except as provided in clause (ii)(II), the capital standards prescribed by the Board under section 1104(a)(2) shall include--

(I) a leverage limit; and

(II) a risk-based capital requirement.

(ii) OTHER CAPITAL MEASURES- The Board may by regulation--

(I) establish any additional relevant capital measures to carry out this section; or

(II) rescind any relevant capital measure required under clause (i) upon determining that the measure is no longer an appropriate means for carrying out this section.

(B) CAPITAL CATEGORIES GENERALLY- The Board shall, by regulation, specify for each relevant capital measure the levels at which a financial holding company subject to stricter standards is well capitalized, undercapitalized, and significantly undercapitalized.

(C) CRITICAL CAPITAL-

(i) BOARD TO SPECIFY LEVEL-

(I) LEVERAGE LIMIT- The Board shall, by regulation, specify the ratio of tangible equity to total assets at which a financial holding company subject to stricter standards is critically undercapitalized.

(II) OTHER RELEVANT CAPITAL MEASURES- The Board may, by regulation, specify for 1 or more other relevant capital measures, the level at which a financial holding company subject to stricter standards is critically undercapitalized.

(ii) LEVERAGE LIMIT RANGE- The level specified under clause (i)(I) shall require tangible equity in an amount--

(I) not less than 2 percent of total assets; and

(II) except as provided in subclause (I), not more than 65 percent of the required minimum level of capital under the leverage limit.

(5) CAPITAL DISTRIBUTIONS RESTRICTED-

(A) IN GENERAL- A financial holding company subject to stricter standards shall make no capital distribution if, after making the distribution, the financial holding company subject to stricter standards would be undercapitalized.

(B) EXCEPTION- Notwithstanding subparagraph (A), the Board may permit a financial holding company subject to stricter standards to repurchase, redeem, retire, or otherwise acquire shares or ownership interests if the repurchase, redemption, retirement, or other acquisition--

(i) is made in connection with the issuance of additional shares or obligations of the financial holding company subject to stricter standards in at least an equivalent amount; and

(ii) will reduce the financial obligations of the financial holding company subject to stricter standards or otherwise improve the financial condition of the financial holding company subject to stricter standards.

(6) PROVISIONS APPLICABLE TO UNDERCAPITALIZED FINANCIAL HOLDING COMPANY SUBJECT TO STRICTER STANDARDS-

(A) MONITORING REQUIRED- The Board shall--

(i) closely monitor the condition of any undercapitalized financial holding company subject to stricter standards;

(ii) closely monitor compliance by any undercapitalized financial holding company subject to stricter standards with capital restoration plans, restrictions, and requirements imposed under this section; and

(iii) periodically review the plan, restrictions, and requirements applicable to any undercapitalized financial holding company subject to stricter standards to determine whether the plan, restrictions, and requirements are effective.

(B) CAPITAL RESTORATION PLAN REQUIRED-

(i) IN GENERAL- Any undercapitalized financial holding company subject to stricter standards shall submit an acceptable capital restoration plan to the Board within the time allowed by the Board under clause (iv).

(ii) CONTENTS OF PLAN- The capital restoration plan shall--

(I) specify--

(aa) the steps the financial holding company subject to stricter standards will take to become well capitalized;

(bb) the levels of capital to be attained by the financial holding company subject to stricter standards during each year in which the plan will be in effect;

(cc) how the financial holding company subject to stricter standards will comply with the restrictions or requirements then in effect under this section; and

(dd) the types and levels of activities in which the financial holding company subject to stricter standards will engage; and

(II) contain such other information that the Board may require.

(iii) CRITERIA FOR ACCEPTING PLAN- The Board shall not accept a capital restoration plan unless it determines that the plan--

(I) complies with clause (ii);

(II) is based on realistic assumptions, and is likely to succeed in restoring the capital of the financial holding company subject to stricter standards; and

(III) would not appreciably increase the risk (including credit risk, interest-rate risk, and other types of risk) to which the financial holding company subject to stricter standards is exposed.

(iv) DEADLINES FOR SUBMISSION AND REVIEW OF PLANS- The Board shall, by regulation, establish deadlines that--

(I) provide financial holding companies subject to stricter standards with reasonable time to submit capital restoration plans, and generally require a financial holding company subject to stricter standards to submit a plan not later than 45 days after it becomes undercapitalized; and

(II) require the Board to act on capital restoration plans expeditiously, and generally not later than 60 days after the plan is submitted.

(C) ASSET GROWTH RESTRICTED- An undercapitalized financial holding company subject to stricter standards shall not permit its average total assets during any calendar quarter to exceed its average total assets during the preceding calendar quarter unless--

(i) the Board has accepted the capital restoration plan of the financial holding company subject to stricter standards;

(ii) any increase in total assets is consistent with the plan; and

(iii) the ratio of tangible equity to total assets of the financial holding company subject to stricter standards increases during the calendar quarter at a rate sufficient to enable it to become well capitalized within a reasonable time.

(D) PRIOR APPROVAL REQUIRED FOR ACQUISITIONS AND NEW LINES OF BUSINESS- An undercapitalized financial holding company subject to stricter standards shall not, directly or indirectly, acquire any interest in any company or insured depository institution, or engage in any new line of business, unless--

(i) the Board has accepted the capital restoration plan of the financial holding company subject to stricter standards, the financial holding company subject to stricter standards is implementing the plan, and the Board determines that the proposed action is consistent with and will further the achievement of the plan;

(ii) the Board determines that the specific proposed action is appropriate; or

(iii) the Board has exempted the financial holding company subject to stricter standards from the requirements of this paragraph with respect to the class of acquisitions that includes the proposed action.

(E) DISCRETIONARY SAFEGUARDS- The Board may, with respect to any undercapitalized financial holding company subject to stricter standards, take actions described in any clause of paragraph (7)(B) if the Board determines that those actions are necessary. The Board, in determining whether to impose any requirement under this subparagraph that is likely to have a significant effect on a functionally regulated subsidiary, subsidiary depository institution, or insurance company subsidiary of a financial holding company subject to stricter standards, shall consult with the primary financial regulatory agency for such subsidiary. In the case of an insurance company subsidiary of a financial holding company subject to stricter standards, the Board shall consult with the Federal Insurance Office.

(7) PROVISIONS APPLICABLE TO SIGNIFICANTLY UNDERCAPITALIZED FINANCIAL HOLDING COMPANIES SUBJECT TO STRICTER STANDARDS AND UNDERCAPITALIZED FINANCIAL HOLDING COMPANIES SUBJECT TO STRICTER STANDARDS THAT FAIL TO SUBMIT AND IMPLEMENT CAPITAL RESTORATION PLANS-

(A) IN GENERAL- This paragraph shall apply with respect to any financial holding company subject to stricter standards that--

(i) is significantly undercapitalized; or

(ii) is undercapitalized and--

(I) fails to submit an acceptable capital restoration plan within the time allowed by the Board under paragraph (6)(B)(iv); or

(II) fails in any material respect to implement a capital restoration plan accepted by the Board.

(B) SPECIFIC ACTIONS AUTHORIZED- The Board shall carry out this paragraph by taking 1 or more of the following actions--

(i) REQUIRING RECAPITALIZATION- Doing one or more of the following:

(I) Requiring the financial holding company subject to stricter standards to sell enough shares or obligations of the financial holding company subject to stricter standards so that the financial holding company subject to stricter standards will be well capitalized after the sale.

(II) Further requiring that instruments sold under subclause (I) be voting shares.

(III) Requiring the financial holding company subject to stricter standards to be acquired by or combine with another company.

(ii) RESTRICTING TRANSACTIONS WITH AFFILIATES-

(I) Requiring the financial holding company subject to stricter standards to comply with section 23A of the Federal Reserve Act (12 U.S.C. 371c), as if it were a member bank.

(II) Further restricting the transactions of the financial holding company subject to stricter standards with affiliates and insiders.

(iii) RESTRICTING ASSET GROWTH- Restricting the asset growth of the financial holding company subject to stricter standards more stringently than paragraph (6)(C), or requiring the financial holding company subject to stricter standards to reduce its total assets.

(iv) RESTRICTING ACTIVITIES- Requiring the financial holding company subject to stricter standards or any of its subsidiaries to alter, reduce, or terminate any activity that the Board determines poses excessive risk to the financial holding company subject to stricter standards.

(v) IMPROVING MANAGEMENT- Doing one or more of the following:

(I) NEW ELECTION OF DIRECTORS- Ordering a new election for the board of directors of the financial holding company subject to stricter standards.

(II) DISMISSING DIRECTORS OR SENIOR EXECUTIVE OFFICERS- Requiring the financial holding company subject to stricter standards to dismiss from office any director or senior executive officer who had held office for more than 180 days immediately before the financial holding company subject to stricter standards became undercapitalized. Dismissal under this clause shall not be construed to be a removal under section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818).

(III) EMPLOYING QUALIFIED SENIOR EXECUTIVE OFFICERS- Requiring the financial holding company subject to stricter standards to employ qualified senior executive officers (who, if the Board so specifies, shall be subject to approval by the Board).

(vi) REQUIRING DIVESTITURE- Requiring the financial holding company subject to stricter standards to divest itself of or liquidate any subsidiary if the Board determines that the subsidiary is in danger of becoming insolvent, poses a significant risk to the financial holding company subject to stricter standards, or is likely to cause a significant dissipation of the assets or earnings of the financial holding company subject to stricter standards.

(vii) REQUIRING OTHER ACTION- Requiring the financial holding company subject to stricter standards to take any other action that the Board determines will better carry out the purpose of this section than any of the actions described in this subparagraph.

(C) PRESUMPTION IN FAVOR OF CERTAIN ACTIONS- In complying with subparagraph (B), the Board shall take the following actions, unless the Board determines that the actions would not be appropriate:

(i) The action described in subclause (I) or (III) of subparagraph (B)(i) (relating to requiring the sale of shares or obligations, or requiring the financial holding company subject to stricter standards to be acquired by or combine with another company).

(ii) The action described in subparagraph (B)(ii) (relating to restricting transactions with affiliates).

(D) SENIOR EXECUTIVE OFFICERS’ COMPENSATION RESTRICTED-

(i) IN GENERAL- The financial holding company subject to stricter standards shall not do any of the following without the prior written approval of the Board:

(I) Pay any bonus to any senior executive officer.

(II) Provide compensation to any senior executive officer at a rate exceeding that officer’s average rate of compensation (excluding bonuses, stock options, and profit-sharing) during the 12 calendar months preceding the calendar month in which the financial holding company subject to stricter standards became undercapitalized.

(ii) FAILING TO SUBMIT PLAN- The Board shall not grant any approval under clause (i) with respect to a financial holding company subject to stricter standards that has failed to submit an acceptable capital restoration plan.

(E) CONSULTATION WITH OTHER REGULATORS- Before the Board makes a determination under subparagraph (B)(vi) with respect to a subsidiary that is a broker, dealer, government securities broker, government securities dealer, investment company, or investment adviser, the Board shall consult with the Securities and Exchange Commission and, in the case of any other subsidiary which is subject to any financial responsibility or capital requirement, any other appropriate regulator of such subsidiary with respect to the proposed determination of the Board and actions pursuant to such determination.

(8) MORE STRINGENT TREATMENT BASED ON OTHER SUPERVISORY CRITERIA-

(A) IN GENERAL- If the Board determines (after notice and an opportunity for hearing) that a financial holding company subject to stricter standards is in an unsafe or unsound condition or, pursuant to section 8(b)(8) of the Federal Deposit Insurance Act (12 U.S.C. 1818(b)(8)), deems the financial holding company subject to stricter standards to be engaging in an unsafe or unsound practice, the Board may--

(i) if the financial holding company subject to stricter standards is well capitalized, require the financial holding company subject to stricter standards to comply with one or more provisions of paragraphs (6) and (7), as if the institution were undercapitalized; or

(ii) if the financial holding company subject to stricter standards is undercapitalized, take any one or more actions authorized under paragraph (7)(B) as if the financial holding company subject to stricter standards were significantly undercapitalized, after consultation with the primary financial regulatory agency for any functionally regulated subsidiary, subsidiary depository institution, or insurance company subsidiary that is likely to be significantly affected by such actions. In the case of an insurance company subsidiary of a financial holding company subject to stricter standards, the Board shall consult with the Federal Insurance Office.

(B) CONTENTS OF PLAN- A plan that may be required pursuant to subparagraph (A)(i) shall specify the steps that the financial holding company subject to stricter standards will take to correct the unsafe or unsound condition or practice.

(9) IMPLEMENTATION- The Board shall prescribe such regulations, issue such orders, and take such other actions the Board determines to be necessary to carry out this subsection.

(10) OTHER AUTHORITY NOT AFFECTED- This section does not limit any authority of the Board, any other Federal regulatory agency, or a State to take action in addition to (but not in derogation of) that required under this section.

(11) CONSULTATION- The Board and the Secretary of the Treasury shall consult with their foreign counterparts and through appropriate multilateral organizations to reach agreement to extend comprehensive and robust prudential supervision and regulation to all highly leveraged and substantially interconnected financial companies.

(12) ADMINISTRATIVE REVIEW OF DISMISSAL ORDERS-

(A) TIMELY PETITION REQUIRED- A director or senior executive officer dismissed pursuant to an order under paragraph (7)(B)(v)(II) may obtain review of that order by filing a written petition for reinstatement with the Board not later than 10 days after receiving notice of the dismissalconvertible debt that should be required; CommentsClose CommentsPermalink




(C) an analysis of potential prudential standards that should be used to determine whether the contingent capital of a company would be converted to equity in times of financial stress; CommentsClose CommentsPermalink





(D) an evaluation of the costs to companies, the effects on the structure and operation of credit and other financial markets, and other economic effects of requiring contingent capital; CommentsClose CommentsPermalink





(E) an evaluation of the effects of such requirement on the international competitiveness of companies subject to the requirement and the prospects for international coordination in establishing such requirement; and CommentsClose CommentsPermalink





(F) recommendations for implementing regulations. CommentsClose CommentsPermalink





(2) REPORT- The Council shall submit a report to Congress regarding the study required by paragraph (1) not later than 2 years after the date of enactment of this Act. CommentsClose CommentsPermalink





(3) RECOMMENDATIONS- CommentsClose CommentsPermalink





(A) IN GENERAL- Subsequent to submitting a report to Congress under paragraph (2), the Council may make recommendations to the Board of Governors to require any nonbank financial company supervised by the Board of Governors and any bank holding company described in subsection (a) to maintain a minimum amount of long-term hybrid debt that is convertible to equity in times of financial stress. CommentsClose CommentsPermalink





(B) PROCEDURE-

(i) HEARING REQUIRED- The Board shall give the petitioner an opportunity to--

(I) submit written materials in support of the petition; and

(II) appear, personally or through counsel, before 1 or more members of the Board or designated employees of the Board.

(ii) DEADLINE FOR HEARING- The Board shall--

(I) schedule the hearing referred to in clause (i)(II) promptly after the petition is filed; and

(II) hold the hearing not later than 30 days after the petition is filed, unless the petitioner requests that the hearing be held at a later time.

(iii) DEADLINE FOR DECISION- Not later than 60 days after the date of the hearing, the Board shall--

(I) by order, grant or deny the petition;

(II) if the order is adverse to the petitioner, set forth the basis for the order; and

(III) notify the petitioner of the order.

(C) STANDARD FOR REVIEW OF DISMISSAL ORDERS- The petitioner shall bear the burden of proving that the petitioner’s continued employment would materially strengthen the ability of the financial holding company subject to stricter standards--

(i) to become well capitalized, to the extent that the order is based on the capital level of the financial holding company subject to stricter standards or such company’s failure to submit or implement a capital restoration plan; and

(ii) to correct the unsafe or unsound condition or unsafe or unsound practice, to the extent that the order is based on paragraph (8)(A).

(13) ENFORCEMENT AUTHORITY FOR FOREIGN FINANCIAL HOLDING COMPANY SUBJECT TO STRICTER STANDARDS-

(A) TERMINATION AUTHORITY- If the Board believes that a condition, practice, or activity of a foreign financial holding company subject to stricter standards does not comply with this title or the rules or orders prescribed by the Board under this title or otherwise poses a threat to financial stability, the Board may, after notice and opportunity for a hearing, take such actions as necessary to mitigate such risk, including ordering a foreign financial holding company subject to stricter standards in the United States to terminate the activities of such branch, agency, or subsidiary.

(B) DISCRETION TO DENY HEARING- The Board may issue an order under paragraphFACTORS TO CONSIDER- In making recommendations under this subsection, the Council shall consider-- CommentsClose CommentsPermalink




(i) an appropriate transition period for implementation of a conversion under this subsection; CommentsClose CommentsPermalink





(ii) the factors described in subsection (b)(3); CommentsClose CommentsPermalink





(iii) capital requirements applicable to a nonbank financial company supervised by the Board of Governors or a bank holding company described in subsection (a), and subsidiaries thereof; CommentsClose CommentsPermalink





(iv) results of the study required by paragraph (1); and CommentsClose CommentsPermalink





(v) any other factor that the Council deems appropriate. CommentsClose CommentsPermalink





(d) Resolution Plan and Credit Exposure Reports- CommentsClose CommentsPermalink





(1) without providing for an opportunity for a hearing if the Board determines that expeditious action is necessary in order to protect the public interest.

(f) Reports Regarding Rapid and Orderly Resolution and Credit Exposure-

(1) IN GENERAL- The Board shall require each financial holding company subject to stricter standards incorporated or organized in the United StatesRESOLUTION PLAN- The Council may make recommendations to the Board of Governors concerning the requirement that each nonbank financial company supervised by the Board of Governors and each bank holding company described in subsection (a) report periodically to the Council, the Board of Governors, and the Corporation, the plan of such company for rapid and orderly resolution in the event of material financial distress or failure. CommentsClose CommentsPermalink




(2) CREDIT EXPOSURE REPORT- The Council may make recommendations to the Board of Governors concerning the advisability of requiring each nonbank financial company supervised by the Board of Governors and bank holding company described in subsection (a) to report periodically to the Board on--

(A) its plan for rapid and orderly resolution in the event of severe financial distress;

(B) the nature and extent to which the financial holding company subject to stricter standardsCouncil, the Board of Governors, and the Corporation on-- CommentsClose CommentsPermalink




(A) the nature and extent to which the company has credit exposure to other significant financial companies; and(Cnonbank financial companies and significant bank holding companies; and CommentsClose CommentsPermalink





(B) the nature and extent to which other significant financial companies have credit exposure to the financial holding company subject to stricter standards.

(2) NO LIMITING EFFECT- A rapid resolution plan submitted in accordance with this subsection shall not be binding on a receiver appointed under subtitle G, a bankruptcy court, or any other authority that is authorized or required to resolve the financial holding company subject to stricter standards or any of its subsidiaries or affiliates.

(3) REPORTING TRIGGERED BY STRESS TEST RESULTS-

(A) FINANCIAL HOLDING COMPANIES SUBJECT TO STRICTER STANDARDS- Each time the results of a quarterly stress test under baseline or adverse conditions conducted by a financial holding company subject to stricter standards under section 1114(a) or the results of a stress test of that financial holding company subject to stricter standards conducted by the Board under subsection (g) indicate that the financial holding company subject to stricter standards is, in the determination of the Board, significantly or critically undercapitalized, that financial holding company subject to stricter standards shall submit a rapid resolution plan in accordance with this subsection that has been revised to address the causes of those results.

(B) FINANCIAL COMPANIES THAT ARE NOT FINANCIAL HOLDING COMPANIES SUBJECT TO STRICTER STANDARDS- Each time the results of a semiannual stress test under baseline or adverse conditions conducted by a financial company under section 1114(b) indicate that the financiuch significant nonbank financial companies and significant bank holding companies have credit exposure to that company. CommentsClose CommentsPermalink




(e) Concentration Limits- In order to limit the risks that the failure of any individual company is, in the determination of the Board, significantly or critically undercapitalized, that financial company shall be required to report under this subsection. The Board shall prescribe regulations establishing expedited procedures for such reporting.

(C) TRANSPARENCY- Any rapid resolution plan submitted pursuant to this paragraph shall be subject to any restrictions regarding the disclosure of any other rapid resolution plan submitted pursuant to this subsection.

(g) Stress Tests-

(1) The Board, in coordination with the appropriate primary financial regulatory agency, shall conduct annual stress tests of each financial holding company subject to stricter standards. The Board may, as the Board determines appropriate, conduct stress tests of financial companies that are not financial holding companies subject to stricter standards. The Board shall publish a summary of the results of such stress tests.

(2) The Board shall issue regulations to define the term ‘stress test’ for purposes of this subsection. Such a definition shall provide for not less than 3 different sets of conditions under which a stress test should be conducted: baseline, adverse, and severelycould pose to nonbank financial companies supervised by the Board of Governors or bank holding companies described in subsection (a), the Council may make recommendations to the Board of Governors to prescribe standards to limit such risks, as set forth in section 165. CommentsClose CommentsPermalink




(f) Enhanced Public Disclosures- The Council may make recommendations to the Board of Governors to require periodic public disclosures by bank holding companies described in subsection (a) and by nonbank financial companies supervised by the Board of Governors, in order to support market evaluation of the risk profile, capital adequacy, and risk management capabilities thereof. CommentsClose CommentsPermalink

(a) In General- Subject to subsection (b), the Council, acting through the Office of Financial Research, may require a bank holding company with total consolidated assets of $50,000,000,000 or greater or a nonbank financial company supervised by the Board of Governors, and any subsidiary thereof, to submit certified reports to keep the Council informed as to-- CommentsClose CommentsPermalink





(1) the financial condition of the company; CommentsClose CommentsPermalink





(2) systems for monitoring and controlling financial, operating, and other risks; CommentsClose CommentsPermalink





(3) transactions with any subsidiary that is a depository institution; and CommentsClose CommentsPermalink





(4) the extent to which the activities and operations of the company and any subsidiary thereof, could, under adverse scenarios.

(h) Avoiding Duplication- The Board shall take any action the Board deems appropriate to avoid imposing duplicative requirements under this subtitle for financial holding companies subject to stricter standards that are also bank holding companies.

(i) Resolution Plans Required-

(1) IN GENERAL- The Corporation and the Board, after consultation with the Council, shall jointly issue regulations requiring financial holding companies subject to stricter standards to develop plans designed to assist in the rapid and orderly resolution of the company.

(2) STANDARDS FOR RESOLUTION PLANS- The regulations required by paragraph (1) shall--

(A) define the scope of financial holding companies subject to stricter standards covered by these requirements and may exempt financial holding companies subject to stricter standards from the requirements of this subsection if the Corporation and the Board jointly determine that exemption is consistent with the purposes of this title;

(B) require each plan to demonstrate that any insured depository institution affiliated with a financial holding company subject to stricter standards is adequately insulated from the activities of any non-bank subsidiary of the institution or financial holding companies subject to stricter standards;

(C) require that each plan include information detailing--

(i) the nature and extent to which the financial holding company subject to stricter standards has credit exposure to other significant financial companies;

(ii) the nature and extent to which other significant financial companies have credit exposure to the financial holding company subject to stricter standards;

(iii) full descriptions of the financial holding company subject to stricter standards’ ownership structure, assets, liabilities, and contractual obligations; and

(iv) the cross-guarantees tied to different securities, a list of major counterparties, and a process for determining where the financial holding company subject to stricter standards’ collateral is pledged; and

(D) establish such other standards as the Corporation and the Board may jointly deem necessary to carry out this subsection.

(3) REVIEW OF PLANS-

(A) SUBMISSION OF PLANS- Each financial holding company subject to stricter standards that is subject to the requirement under paragraph (1) shall submit its plan to the Corporation and the Board.

(B) REVIEW- Upon the submission of a plan pursuant to subparagraph (A), and not less often than annually thereafter, the Corporation and the Board, after consultation with any Federal financial regulatory agencies with jurisdiction over the financial holding company subject to stricter standards (and, if the financial holding company subject to stricter standards is an insurance company, the Federal Insurance Office), shall jointly review such plan and may require a financial holding company subject to stricter standards to revise its plan consistent with the standards established pursuant to paragraph (2).

(4) ENFORCEMENT-

(A) IN GENERAL- The Corporation, after consultation with the Board, shall have the authority to take any enforcement action in section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818) against any financial holding company subject to stricter standards that fails to comply with the requirements of this section or any regulations issued pursuant to this section.

(B) NO LIMITATION ON BOARD AUTHORITY- Nothing under this subsection shall be construed as limiting any enforcement authority available to the Board under any other provision of law.

(5) NO LIMITING EFFECT ON RECEIVER- A rapid resolution plan submitted under this section shall not be binding on a receiver appointed under subtitle G, a bankruptcy court, or any other authority that is authorized or requiredcircumstances, have the potential to resolve the financial holding company subject to stricter standards or any of its subsidiaries or affiliates.

(6) NO PRIVATE RIGHT OF ACTION- No private right of action may be based on any resolution plan submitted under this section.

(j) Rule of Construction Regarding Consumer Protection Standards- The prudential standards imposed or recommended by the Board or the Council under this section shall not be construed as superseding--

(1) any consumer protection standards promulgated under a State or Federal consumer protection law, including the Consumer Financial Protection Agency Act and the Federal Trade Commission Act; or

(2) any investor protection standard that protects consumers (including public reporting requirements) imposed under State or Federal securities laws, including the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Company Act of 1944, and the Investment Advisors Act of 1944.

(k) Rulemaking Authority- The Board may prescribe such regulations and issue such orders as the Board, in consultation with the Council, determines to be necessary to carry out the provisions of this subtitle.

SEC. 1105. MITIGATION OF SYSTEMIC RISK.

(a) Council Authority to Restrict Operations and Activities- If the Council determines, after notice and an opportunity for hearing, that despite the higher prudential standards imposed pursuant to section 1104(a)(2), the size of a financial holding company subject to stricter standards or the scope, nature, scale, concentration, interconnectedness, or mix of activities directly or indirectly conducted by a financial holding company subject to stricter standards poses a grave threat to the financial stability or economy of the United States, the Council shall require the company to undertake 1 or more mitigatory actions described in subsection (d).

(b) Consultation With Federal Financial Regulatory Agencies- The Council, in determining whether to impose any requirement under this section that is likely to have a significant impact on a functionally regulated subsidiary, or a subsidiary depository institution, of a financial holding company subject to stricter standards under this title, shall consult with the Federal financial regulatory agency for any such subsidiary. With respect to any requirements under this section that is likely to have a significant effect on an insurance company, the Council shall consult with the Federal Insurance Office.

(c) Factors for Consideration- In reaching a determination described in subsection (a), the Council shall take into consideration the following factors, as appropriate--

(1) the amount and nature of the company’s financial assets;

(2) the amount and nature of the company’s liabilities, including the degree of reliance on short-term funding;

(3) the extent and nature of the company’s off-balance sheet exposures;

(4) the company’s reliance on leverage;

(5) the extent and nature of the company’s transactions, relationships, and interconnectedness with other financial and non-financial companies;

(6) the company’s importance as a source of credit for households, businesses, and State and local governments and as a source of liquidity for the financial system;

(7) the scope, nature, size, scale, concentration, interconnectedness and mix of the company’s activities;

(8) the extent to which prudential regulations mitigate the risk posed; and

(9) any other factors identified that the Council determines appropriate.

(d) Mitigatory Actions-

(1) IN GENERAL- Mitigatory action may include--

(A) modifying the stricter prudential standards imposed pursuant to section 1104(a);

(B) terminating 1 or more activities;

(C) imposing conditions on the manner in which a financial holding company subject to stricter standards conducts 1 or more activities;

(D) limiting the ability to merge with, acquire, consolidate with, or otherwise become affiliated with another company;

(E) restricting the ability to offer a financial product or products; and

(F) in the event the Council deems subparagraphs (A) through (E) inadequate as a means to address the identified risks, selling, divesting, or otherwise transferring business units, branches, assets, or off-balance sheet items to unaffiliated companiedisrupt financial markets or affect the overall financial stability of the United States. CommentsClose CommentsPermalink




(b) Use of Existing Reports- CommentsClose CommentsPermalink





(1) IN GENERAL- For purposes of compliance with subsection (a), the Council, acting through the Office of Financial Research, shall, to the fullest extent possible, use-- CommentsClose CommentsPermalink





(A) reports that a bank holding company, nonbank financial company supervised by the Board of Governors, or any functionally regulated subsidiary of such company has been required to provide to other Federal or State regulatory agencies; CommentsClose CommentsPermalink





(B) information that is otherwise required to be reported publicly; and CommentsClose CommentsPermalink





(C) externally audited financial statements. CommentsClose CommentsPermalink





(2) INTERNATIONAL COMPETITIVENESS CONSIDERATIONS- In making any decision pursuant to paragraph (1), the Council shall consider--(A)AVAILABILITY- Each bank holding company described in subsection (a) and nonbank financial company supervised by the Board of Governors, and any subsidiary thereof, shall provide to the Council, at the request of the Council, copies of all reports referred to in paragraph (1). CommentsClose CommentsPermalink





(3) CONFIDENTIALITY- The Council shall maintain the confidentiality of the reports obtained under subsection (a) and paragraph (1)(A) of this subsection. CommentsClose CommentsPermalink

(a) Applicability- This section shall apply to any entity or a successor entity that-- CommentsClose CommentsPermalink





(1) was a bank holding company having total consolidated assets equal to or greater than $50,000,000,000 as of January 1, 2010; and CommentsClose CommentsPermalink





(2) received financial assistance under or participated in the Capital Purchase Program established under the need to maintain the international competitiveness of the United States financial services industry; and

(B) the extent to which other countries with a significant financial services industry have established corresponding regimes to mitigate threats to financial stability or the economy posed by financial companies.

(e) Due ProcessTroubled Asset Relief Program authorized by the Emergency Economic Stabilization Act of 2008. CommentsClose CommentsPermalink




(b) Treatment- If an entity described in subsection (a) ceases to be a bank holding company at any time after January 1, 2010, then such entity shall be treated as a nonbank financial company supervised by the Board of Governors, as if the Council had made a determination under section 113 with respect to that entity. CommentsClose CommentsPermalink





(c) Appeal- CommentsClose CommentsPermalink





(1) NOTICE AND HEARING- The Council shall give notice to a financial holding company subject to stricter standards, and opportunity for hearing if requested, that the financial holding company subject to stricter standards is being considered for mitigatory action pursuant to subsection (a). The hearing shall occur no later than 30 days after the financial company receives notice of the proposed action from the Council.

(2) NOTICE- The Council shall notify the financial holding company subject to stricter standards of the Council’s determination, and, if the Council determines that mitigatory action is appropriate, require the company to submit a plan to the Council to implement the required mitigatory action.

(3) SUBMISSION OF PLAN- The financial holding company subject to stricter standards shall submit its proposed plan to implement the required mitigatory action or actions to the Council within 60 days from the date it receives notice under paragraphREQUEST FOR HEARING- An entity may request, in writing, an opportunity for a written or oral hearing before the Council to appeal its treatment as a nonbank financial company supervised by the Board of Governors in accordance with this section. Upon receipt of the request, the Council shall fix a time (not later than 30 days after the date of receipt of the request) and place at which such entity may appear, personally or through counsel, to submit written materials (or, at the sole discretion of the Council, oral testimony and oral argument). CommentsClose CommentsPermalink




(2) or such shorter timeframe as the Council may require, if the Council determines an emergency situation merits expeditious implementation.

(4) APPROVAL OR AMENDMENT OF THE PLAN- The Council shall review the plan submitted pursuant to paragraph (3) and determine whether the plan achieves the goal of mitigating a grave threat to the financial stability or the economy of the United States. The Council may approve or disapprove the plan with or without amendment.

(5) EFFECT OF PLAN APPROVAL- The Council shall--

(A) notify a financial holding company subject to stricter standards by order, whichDECISION- CommentsClose CommentsPermalink




(A) PROPOSED DECISION- Not later than 60 days after the date of a hearing under paragraph (1), the Council shall submit a report to, and may testify before, the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives on the proposed decision of the Council regarding an appeal under paragraph (1), which report shall include a statement of the basis for the proposed decision of the Council. CommentsClose CommentsPermalink





(B) NOTICE OF FINAL DECISION- The Council shall notify the subject entity of the final decision of the Council regarding an appeal under paragraph (1), which notice shall contain a statement of the basis for the final decision of the Council, not later than 60 days after the later of-- CommentsClose CommentsPermalink





(i) the date of the submission of the report under subparagraph (A); or CommentsClose CommentsPermalink





(ii) if the Committee on Banking, Housing, and Urban Affairs of the Senate or the Committee on Financial Services of the House of Representatives holds one or more hearings regarding such report, the date of the last such hearing. CommentsClose CommentsPermalink





(C) CONSIDERATIONS- In making a decision regarding an appeal under paragraph (1), the Council shall consider whether the company meets the standards under section 113(a) or 113(b), as applicable, and the definition of the term ‘nonbank financial company’ under section 102. The decision of the Council shall be final, subject to the review under paragraph (3). CommentsClose CommentsPermalink





(3) REVIEW- If the Council denies an appeal under this subsection, the Council shall, not less frequently than annually, review and reevaluate the decision. CommentsClose CommentsPermalink

Any expenses of the Council shall be public, that the Council has approved the plan with or without amendment; and

(B) direct the Board to require a financial holding company subject to stricter standards to comply with the plan to implement mitigatory action or actions within a reasonable timeframe after the Council’s approval and in accordance with such deadlines established in the plan.

(f) Treasury Secretary Concurrence- Mitigatory action imposed by the Council involving the sale, divestiture, or transfer of more than $10,000,000,000 in total assets by a financial holding company subject to stricter standards shall require the Secretary of the Treasury’s concurrence before the issuance of the notice in subsection (e)(5)(A). If the sale, divestiture, or transfer of total assets by a financial holding company subject to stricter standards exceeds $100,000,000,000, the Secretary of the Treasury shall consult with the President before concurrence. The aforementioned amounts shall be indexed to inflation.

(g) Failure to Implement the Plan- If a financial holding company subject to stricter standards fails to implement a plan for mitigatory action imposed pursuant to this section within a reasonable timeframe, the Council shall direct the Board to take such actions as necessary to ensure compliance with the plan.

(h) Judicial Review- For any plan required under this section, a financial holding company subject to stricter standards may, not later than 30 days after receipt of the Council’s notice under subsection (e)(2), bring an action in the United States district court for the judicial district in which the home office of such company is located, or in the United States District Court for the District of Columbia, for an order requiring that the requirement for a mitigatory action be rescinded. Judicial review under this section shall be limitedtreated as expenses of, and paid by, the Office of Financial Research. CommentsClose CommentsPermalink

(a) Request for Dispute Resolution- The Council shall resolve a dispute among 2 or more member agencies, if-- CommentsClose CommentsPermalink





(1) a member agency has a dispute with another member agency about the respective jurisdiction over a particular bank holding company, nonbank financial company, or financial activity or product (excluding matters for which another dispute mechanism specifically has been provided under Federal law); CommentsClose CommentsPermalink





(2) the Council determines that the disputing agencies cannot, after a demonstrated good faith effort, resolve the dispute without the intervention of the Council; and CommentsClose CommentsPermalink





(3) any of the member agencies involved in the dispute-- CommentsClose CommentsPermalink





(A) provides all other disputants prior notice of the intent to request dispute resolution by the Council; and CommentsClose CommentsPermalink





(B) requests in writing, not earlier than 14 days after providing the notice described in subparagraph (A), that the Council resolve the dispute. CommentsClose CommentsPermalink





(b) Council Decision- The Council shall resolve each dispute described in subsection (a)-- CommentsClose CommentsPermalink





(1) within a reasonable time after receiving the dispute resolution request; CommentsClose CommentsPermalink





(2) after consideration of relevant information provided by each agency party to the imposition of a mitigatory action pursuant to subsection (e)(5). In reviewing the Council’s imposition of a mitigatory action, the court shall rescind or dismiss only those mitigatory actions it finds to be imposed in an arbitrary and capricious manner.(i) Rule of Construction- Nothing in subsection (h) shall be construed as limiting the authority of a Federal financial regulatory agency to take action with respect to a financial company subject to the jurisdiction of such agency pursuant to applicable law other than this sectiondispute; and CommentsClose CommentsPermalink





(3) by agreeing with 1 of the disputants regarding the entirety of the matter, or by determining a compromise position. CommentsClose CommentsPermalink





(c) Form and Binding Effect- A Council decision under this section shall-- CommentsClose CommentsPermalink





(1) be in writing; CommentsClose CommentsPermalink





(2) include an explanation of the reasons therefor; and CommentsClose CommentsPermalink





(3) be binding on all Federal agencies that are parties to the dispute. CommentsClose CommentsPermalink

SEC. 1106. SUBJECTING20. ADDITIONAL STANDARDS APPLICABLE TO ACTIVITIES OR PRACTICES TO STRICTER PRUDENTIAL STANDARDS FOR FINANCIAL STABILITY PURPOSES.

(a) In General- The Council may subject a financial activity or practice to stricter prudential standards under this subtitle if the Council determines that the conduct, scope, nature, size, scale, concentration, or interconnectednessissue recommendations to the primary financial regulatory agencies to apply new or heightened standards and safeguards, including standards enumerated in section 115, for a financial activity or practice conducted by bank holding companies or nonbank financial companies under their respective jurisdictions, if the Council determines that the conduct of such activity or practice could create or increase the risk of significant liquidity, credit, or other problems spreading among financial institutions or markets and local, minority, or underserved communities, and thereby threaten the stability of the financial system or economy.

(b) Periodic Review of Activity Identifications-

(1) SUBMISSION OF ASSESSMENT- The Board shall periodically submit a report to the Council containing an assessment of whether each activity or practice subjected to stricter prudential standards should continue to be subject to such standards.

(2) REVIEW AND RECISION- The Council shall--

(A) review the assessment submitted pursuant to paragraph (1) and any information or recommendation submitted by members of the Council regarding whether a financial activity subjected to stricter prudential standards continues to merit stricter prudential standards; and

(B) rescind the action subjecting an activity to heightened prudential supervision if the Council determines that the activity no longer meets the criteria in subsection (a).

(cbank holding companies and nonbank financial companies or the financial markets of the United States. CommentsClose CommentsPermalink




(b) Procedure for Subjecting or Ceasing to Subject an Activity or Practice to Stricter Prudential Standards-

(1) COUNCIL AND BOARD COORDINATION- The Council shall inform the Board if the Council is considering whether to subject or cease to subject an activity to stricter prudential standards in accordance with this section.

(2Recommendations to Regulators- CommentsClose CommentsPermalink




(1) NOTICE AND OPPORTUNITY FOR CONSIDERATION OF WRITTEN MATERIALS-

(A) IN GENERAL- The Board shall, in an executive capacity on behalf of the Council, provide notice to financial companies that the Council is considering whether to subject an activity or practice to heightened prudential regulation, and shall provide a financial company engaged in such activity or practice 30 days to submit written materials to inform the Council’s decision. The Council shall decide, and the Board shall provide notice of the Council’s decision, within 60 days of the due date for such written materials.

(B) EMERGENCY EXCEPTION- The Council may waive or modify the requirements of subparagraph (A) if the Council determines that such waiver or modification is necessary or appropriate to prevent or mitigate threats posed by an activity to financial stability. The Board shall, in an executive capacity on behalf of the Council, provide notice of such waiver or modification to financial companies as soon as practicable, which shall be no later than 24 hours after the waiver or modification.

(3) FORM OF DECISION- The Board shall provide all notices required under this subsection by posting a notice on the Board’s web site and publishing a notice in the Federal Register.

SEC. 1107. STRICTER REGULATION OF ACTIVITIES AND PRACTICES FOR FINANCIAL STABILITY PURPOSES.

(a) Prudential Standards-

(1) BOARD AUTHORITY TO RECOMMEND-

(A) IN GENERAL- To mitigate the risks to United States financial stability and the United States economy posed by financial activities and practices that the Council identifies for stricter prudential standards under section 1106 the Board, as agent of the Council, shall recommend prudential standards to the appropriatMMENT- The Council shall consult with the primary financial regulatory agencies to apply to such identified activities and practices.(B) CONSULTATION WITH PRIMARY FINANCIAL REGULATORY AGENCIES- The Board, in developing recommendations under this subsection, shall consult with the relevant primary financial regulatory agencies with respect to any standard that is likely to have a significant effect on entities described in section 1000(b)(6). With respect to any standard that is likely to have a significant effect on insurance companies, the Board also shall consult with the Federal Insurance Offand provide notice to the public and opportunity for comment for any proposed recommendation that the primary financial regulatory agencies apply new or heightened standards and safeguards for a financial activity or practice. CommentsClose CommentsPermalink




(2) CRITERIA- The actionsnew or heightened standards and safeguards for a financial activity or practice recommended under paragraph (1)-- CommentsClose CommentsPermalink





(A) shall be designed to maximize financial stability, taking costs totake costs to long-term financial and economic growth into account; and CommentsClose CommentsPermalink





(B) may include prescribing the conduct of the activity or practice in specific ways (such as by limiting its scope, nature, size, scale, concentration, or interconnectedness, or applying particular capital or risk- management requirements to the conduct of the activity) or prohibiting the activity or practice altogether.

(3) EXCEPTION- The standards recommended by the Board and adopted by a primary financial regulatory agency pursuant to this section shall not apply to activities that a foreign financial parent conducts solely outside the United States if such activities are conducted solely by a company or other operating entity that is located outside the United States.

(b). CommentsClose CommentsPermalink




(c) Implementation of Recommended Standards- CommentsClose CommentsPermalink





(1) ROLE OF PRIMARY FINANCIAL REGULATORY AGENCY- CommentsClose CommentsPermalink





(A) IN GENERAL- Each primary financial regulatory agency is authorized tomay impose, require reports regarding, examine for compliance with, and enforce standards in accordance with this section with respect to those entities described in section 1000(b)(6) for which it is thefor which it is the primary financial regulatory agency. CommentsClose CommentsPermalink





(B) RULE OF CONSTRUCTION- The authority under this paragraph is in addition to, and does not limit, any other authority of a primary financial regulatory agency. Compliance by an entity with actions taken by a primary financial regulatory agency. This authority is in addition to and does not limit any other authority of the primary financial regulatory agencies. Compliance by an entity with actions taken by a primary financial regulatory agency under this section shall be enforceable in accordance with the statutes governing the respective primary financial regulatory agency’s jurisdiction over the entity as if the agency action were taken under those jurisdiction of the primary financial regulatory agency over the entity, as if the agency action were taken under those statutes. CommentsClose CommentsPermalink





(2) IMPOSITION OF STANDARDS- Standards imposed under this subsection shall be the standards recommended by the Board The primary financial regulatory agency shall impose the standards recommended by the Council in accordance with subsection (a) or any other similar standards that the Board, or similar standards that the Council deems acceptable after consultation between the Board and the, or shall explain in writing to the Council, not later than 90 days after the date on which the Council issues the recommendation, why the agency has determined not to follow the recommendation of the Council. CommentsClose CommentsPermalink





(d) Report to Congress- The Council shall report to Congress on-- CommentsClose CommentsPermalink





(1) any recommendations issued by the Council under this section; CommentsClose CommentsPermalink





(2) the implementation of, or failure to implement such recommendation on the part of a primary financial regulatory agency; and CommentsClose CommentsPermalink





(3) in any case in which no primary financial regulatory agency.(3) exists for the nonbank financial company conducting financial activities or practices referred to in subsection (a), recommendations for legislation that would prevent such activities or practices from threatening the stability of the financial system of the United States. CommentsClose CommentsPermalink





(e) Effect of Rescission of Identification- CommentsClose CommentsPermalink





(1) NOTICE- The Council may recommend to the relevant primary financial regulatory agency that a financial activity or practice no longer requires any standards or safeguards implemented under this section. CommentsClose CommentsPermalink





(2) DETERMINATION OF PRIMARY FINANCIAL REGULATORY AGENCY RESPONSE- A primary financial regulatory agency shall notify the Council and the Board in writing on whether and to what extent the agency has imposed the stricter prudential standards described in paragraph (2) within 60 days of the Board’s recommendation. A primary financial regulatory agency that fails to impose such standards shall provide specific justification for such failure to act in the written notice from the agency to the Council and Board.SEC. 1108. EFFECT OF RESCISSION OF IDENTIFICATION.

(a) Notice- When the Council determines that a company or activity or practice no longer is subject to heightened prudential scrutiny, the Board shall inform the relevant primary financial regulatory agency or agencies (if different from the Board) of that finding.

(b) Determination of Primary Financial Regulatory Agency to Continue- ATO CONTINUE- CommentsClose CommentsPermalink




(A) IN GENERAL- Upon receipt of a recommendation under paragraph (1), a primary financial regulatory agency that has imposed stricter prudential standards for financial stability purposes under this subtitleandards under this section shall determine whether standards that it has imposed under this subtitleection should remain in effect. CommentsClose CommentsPermalink





(B) APPEAL PROCESS- Each primary financial regulatory agency that has imposed standards under this section shall promulgate regulations to establish a procedure under which entities under its jurisdiction may appeal a determination by such agency under this paragraph that standards imposed under this section should remain in effect. CommentsClose CommentsPermalink

SEC. 1109. EMERGENCY FINANCIAL STABILIZATION.(a) In General- Upon the written determination of the Council that a liquidity event exists that could destabilize the financial system (which determination shall be made upon a vote of not less than two-thirds of the members of the Council then serving) and with the written consent of the Secretary of the Treasury (after certification by the President that an emergency exists), the Corporation may create a widely-available program designed to avoid or mitigate adverse effects on systemic economic conditions or financial stability by guaranteeing obligations 21. MITIGATION OF RISKS TO FINANCIAL STABILITY.

(a) Mitigatory Actions- If the Board of Governors determines that a bank holding company with total consolidated assets of solvent insured depository institutions or solvent depository institution holding companies (including any affiliates thereof), if necessary to prevent systemic financial instability during times of severe economic distress, except that a guarantee of obligations under this section may not include provision of equity in any form$50,000,000,000 or more, or a nonbank financial company supervised by the Board of Governors, poses a grave threat to the financial stability of the United States, the Board of Governors, upon an affirmative vote of not fewer than 2/3 of the Council members then serving, shall require the subject company-- CommentsClose CommentsPermalink





(1) to terminate one or more activities; CommentsClose CommentsPermalink





(2) to impose conditions on the manner in which the company conducts one or more activities; or CommentsClose CommentsPermalink





(3) if the Board of Governors determines that such action is inadequate to mitigate a threat to the financial stability of the United States in its recommendation, to sell or otherwise transfer assets or off-balance-sheet items to unaffiliated entities. CommentsClose CommentsPermalink





(b) Policies and Procedures- Prior to exercising any authority under this section, the Corporation shall establish policies and procedures governing the issuance of guarantees. The terms and conditions of any guarantees issued shall be established by the Corporation with the approval of the Secretary of the Treasury and the Financial Stability Oversight Council. Such terms and conditions may include the Corporation requiring collateral as a condition of any such guarantee.

(c) Cap for Guaranteed Amount-

(1) IN GENERAL- In connection with any program established pursuant to subsection (a) and subject to paragraph (2), the Corporation may not have guaranteed debt outstanding at any time of more than $500,000,000,000 (as indexed to reflect growth in assets of insured depository institutions and depository institution holding companies as determined by the Corporation).

(2) ADDITIONAL DEBT GUARANTEE AUTHORITY- If the Corporation, with the concurrence of the Council and the Secretary (in consultation with the President), determines that the Corporation must guarantee debt in excess of $500,000,000,000 (as indexed pursuant to paragraph (1)) to prevent systemic financial instability, the Corporation may transmit to the Congress a request for authority to guarantee debt in excess of $500,000,000,000 (as indexed pursuant to paragraph (1)). Such request shall be considered granted by Congress upon adoption of a joint resolution approving such request. Such joint resolution shall be considered in the Senate under expedited procedures.

(d) Funding-

(1) ADMINISTRATIVE EXPENSES AND COST OF GUARANTEES- A program established pursuant to this section shall require funding only for the purposes of paying administrative expenses and for paying a guarantee in the event that a guaranteed loan defaultsNotice and Hearing- CommentsClose CommentsPermalink




(1) IN GENERAL- The Board of Governors, in consultation with the Council, shall provide to a company described in subsection (a) written notice that such company is being considered for mitigatory action pursuant to this section, including an explanation of the basis for, and description of, the proposed mitigatory action. CommentsClose CommentsPermalink





(2) FEES AND OTHER CHARGES- The Corporation HEARING- Not later than 30 days after the date of receipt of notice under paragraph (1), the company may request, in writing, an opportunity for a written or oral hearing before the Board of Governors to contest the proposed mitigatory action. Upon receipt of a timely request, the Board of Governors shall charge fees or other charges to all participants in such program established pursuant to this section to offset projected losses and administrative expenses. To the extent that a program established pursuant to this section has expenses or losses, the program will be funded entirely through fees or other charges assessed on participants in such programfix a time (not later than 30 days after the date of receipt of the request) and place at which such company may appear, personally or through counsel, to submit written materials (or, at the discretion of the Board of Governors, in consultation with the Council, oral testimony and oral argument). CommentsClose CommentsPermalink





(3) EXCESS FUNDS- If at the conclusion of such program there are any excess funds collected from the fees associated with such program, the funds will be deposited into the Systemic Dissolution Fund established pursuant to section 1609(n).

(4) AUTHORITY OF CORPORATION- For purposes of conducting a program established pursuant to this section, the Corporation--

(A) may borrow funds from the Secretary of the Treasury, which shall be repaid in full with interest through fees and charges paid by participants in accordance with paragraph (2), and there shall be available to the Corporation amounts in the Treasury not otherwise appropriated, including for the payment of reasonable administrative expenses;

(B) may not borrow funds from the Deposit Insurance Fund established pursuant to section 11(a)(4) of the Federal Deposit Insurance Act; and

(C) may not borrow funds from the Systemic Dissolution Fund established pursuant to section 1609(n).

(5) BACK-UP SPECIAL ASSESSMENT- To the extent that the funds collected pursuant to paragraph (2) are insufficient to cover any losses or expenses (including monies borrowed pursuant to paragraph (4)) arising from a program established pursuant to this section, the Corporation shall imposeDECISION- Not later than 60 days after the date of a special assessment solely on participants in the program.

(e) Plan for Maintenance or Increase of Lending- In connection with any application or request to participate in such program authorized pursuant to this section, a solvent entity seeking to participate in such program shall be required to submit to the Corporation a plan detailing how the use of such guaranteed funds will facilitate the increase or maintenance of such solvent company’s level of lending to consumers or small businesses.

(f) Sunset of Corporation’s Authority- The Corporation’s authority under subsections (a) and (d) and the authority to borrow funds from the Treasury under section 1609(o) shall expire on December 31, 2013.

(g) Rule of Construction- For purposes of this section, a guarantee of deposits held by insured depository institutions shall not be treated as a debt guarantee program.

(h) Definitions- For purposes of this section, the following definitions apply:

(1) CORPORATION- The term ‘Corporation’ means the Federal Deposit Insurance Corporation.

(2) DEPOSITORY INSTITUTION HOLDING COMPANY- The term ‘depository institution holding company’ has the meaning given the term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).

(3) INSURED DEPOSITORY INSTITUTION- The term ‘insured depository institution’ has the meaning given the term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).

(4) SOLVENT- The term ‘solvent’ means assets are more than the obligations to creditors.

SEC. 1110. ADDITIONAL RELATED AMENDMENTS.

(a) Federal Deposit Insurance Act Related Amendments-

hearing under paragraph (2), or not later than 60 days after the provision of a notice under paragraph (1)SUSPENSION OF PARALLEL FEDERAL DEPOSIT INSURANCE ACT AUTHORITY- Effective upon the date of the enactment of this section through December 31, 2013, the Corporation may not exercise its authority under section 13(c)(4)(G)(i) of the Federal Deposit Insurance Act (12 U.S.C. 1823(c)(4)(G)(i)) to establish any widely-available debt guarantee program for which if no hearing was held, the Board of Governors shall notify the company of the final decision of the Board of Governors, including the results of the vote of the Council, as described in subsection (a). CommentsClose CommentsPermalink




(c) Factors for Consideration- The Board of Governors and the Council shall take into consideration the factors set forth in subsection (a) or (b) of section 113, as applicable, in a determination described in subsection (a) and in a decision described in subsection (b). CommentsClose CommentsPermalink





(d) Application to Foreign Financial Companies- The Board of Governors may prescribe regulations regarding the application of this section to foreign nonbank financial companies supervised by the Board of Governors and foreign-based bank holding companies, giving due regard to the principle of national treatment and competitive equity. CommentsClose CommentsPermalink

For purposes of this subtitle-- CommentsClose CommentsPermalink





(1) the terms ‘Office’ and ‘Director’ mean the Office of Financial Research established under this subtitle and the Director thereof, respectively; CommentsClose CommentsPermalink





(2) the term ‘financial company’ has the same meaning as in title II, and includes an insured depository institution and an insurance company; CommentsClose CommentsPermalink





(3) the term ‘Data Center’ means the data center established under section 1109 would provide authority.

(2) FEDERAL DEPOSIT INSURANCE ACT AUTHORITY PRESERVED- Effective December 31, 2013, the Corporation shall have the same authority pursuant to section 13(c)(4)(G)(i) of the Federal Deposit Insurance Act as the Corporation had prior to the date of enactment of this Act.

(b) Effect of Default on an Fdic Guarantee- If an insured depository institution or depository institution holding company participating in a program under section 1109 or any participant in a debt guarantee program established pursuant to section 13(c)(4)(G)(i) of the Federal Deposit Insurance Act defaults on any obligation guaranteed by the Corporation after the date of enactment of this Act, the Corporation may--

(1) appoint itself as receiver for the insured depository institution that defaults;

(2) with respect to any other participating company that is not an insured depository institution that defaults--

(A) require consideration of whether a determination shall be made as provided in section 1603 to resolve the company under subtitle G; and

(B) if the Corporation is not appointed receiver pursuant to subtitle G within 30 days of the date of default, require the company to file a petition for bankruptcy under section 301 of title 11, United States Code, or file a petition for bankruptcy against the company under section 303 of title 11, United States Code.

(c) Authority to File Involuntary Petition for Bankruptcy- Section 303 of title 11, United States Code, is amended by adding at the end the following:

‘(m) Notwithstanding subsections (a) and (b), an involuntary case may be commenced by the Federal Deposit Insurance Corporation against a depository institution holding company as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813) or other company participating in a guarantee program established by the Corporation on the ground that the company has defaulted on a debt or obligation guaranteed by the Corporation.’.

(d) Bankruptcy Priority for Defaults on Debt Guaranteed Pursuant to Section 1109- Section 507(a)(9) of title 11, United States Code, is amended by inserting before the period at the end the following: ‘and allowed unsecured claims based upon any debt to the Federal Deposit Insurance Corporation that arose prior to the commencement of the case under this title, as a result of the debtor’s default on a guarantee provided by the Corporation pursuant to54; CommentsClose CommentsPermalink




(4) the term ‘Research and Analysis Center’ means the research and analysis center established under section 1109 of the Financial Stability Improvement Act of 2009 or the Federal Deposit Insurance Act, under a program established by the Corporation after the date of enactment of the Financial Stability Improvement Act of 2009’.SEC. 1111. CORPORATION MAY RECEIVE WARRANTS WHEN PAYING OR RISKING TAXPAYER FUNDS.

(a) In General- In connection with any payment, credit extension, or guarantee or any commitment under section 1109 or 1604, the Corporation may obtain from the insured depository institution, depository institution holding company (including any affiliates thereof), or covered financial company, as the case may be--

(1) in the case of an insured depository institution, depository institution holding company (including any affiliates thereof), or covered financial company, the securities of which are traded on a national securities exchange, a warrant giving the right to the Corporation to receive nonvoting common stock or preferred stock in such financial institution, or voting stock with respect to which, the Corporation agrees not to exercise voting power, as the Corporation determines appropriate; or

(2) in the case of any insured depository institution, depository institution holding company (including any affiliates thereof), or covered financial company other than one described in paragraph (1), a warrant for common or preferred stock, or a senior debt instrument from such financial institution, as described in subsection (b)(3).

(b) Terms and Conditions- The terms and conditions of any warrant or senior debt instrument required under subsection (a) shall meet the following requirements:

(1) PURPOSES- Such terms and conditions shall, at a minimum, be designed--

(A) to provide for reasonable participation by the Corporation, for the benefit of taxpayers, in equity appreciation in the case of a warrant or other equity security, or a reasonable interest rate premium, in the case of a debt instrument; and

(B) to provide additional protection for the taxpayer against losses from such payment, extension of credit, or guarantee by the Corporation under this title.

(2) AUTHORITY TO SELL, EXERCISE, OR SURRENDER- The Corporation may sell, exercise, or surrender a warrant or any senior debt instrument received under this subsection, based on the conditions established under paragraph (1).

(3) CONVERSION- The warrant shall provide that if, after the warrant is received by the Corporation under this subsection, the financial company that issued the warrant is no longer listed or traded on a national securities exchange or securities association, as described in subsection (a)(1), such warrants shall convert to senior debt, or contain appropriate protections for the Corporation to ensure that the Corporation is appropriately compensated for the value of the warrant, in an amount determined by the Corporation.

(4) PROTECTIONS- Any warrant representing securities to be received by the Corporation under this subsection shall contain anti-dilution provisions of the type employed in capital market transactions, as determined by the Corporation. Such provisions shall protect the value of the securities from market transactions such as stock splits, stock distributions, dividends, and other distributions, mergers, and other forms of reorganization or recapitalization.

(5) EXERCISE PRICE- The exercise price for any warrant issued pursuant to this subsection shall be set by the Corporation, in the interest of the taxpayers.

(6) SUFFICIENCY- The financial company shall guarantee to the Corporation that it has authorized shares of nonvoting stock available to fulfill its obligations under this subsection. Should the financial company not have sufficient authorized shares, including preferred shares that may carry dividend rights equal to a multiple number of common shares, the Corporation may, to the extent necessary, accept a senior debt note in an amount, and on such terms as will compensate the Corporation54; CommentsClose CommentsPermalink




(5) the term ‘financial transaction data’ means the structure and legal description of a financial contract, with equivalent value, in the event that a sufficient shareholder vote to authorize the necessary additional shares cannot be obtained.

(c) Exceptions-

(1) The Corporation shall establish an exception to the requirements of this section and appropriate alternative requirements for any participating financial company that isdetail to describe the rights and obligations between counterparties and make possible an independent valuation; CommentsClose CommentsPermalink




(6) the term ‘position data’-- CommentsClose CommentsPermalink





(A) means data on financial assets or liabilities held on the balance sheet of a financial company, where positions are created or changed by the execution of a financial transaction; and Comments