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Donate NowH.R.4173 - Dodd-Frank Wall Street Reform and Consumer Protection 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.
| 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 Show Changes Hide Changes | 43% |
| Referred in Senate | 299,585 | 8 | 0% |
| Engrossed Amendment Senate | 283,985 | 9,370 | 90% |
| Enrolled Bill | 383,013 | 4,478 | 50% |
Key: changed or removed text inserted or modified text

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HR 4173 IEHCommentsClose CommentsPermalink
111th CONGRESSCommentsClose CommentsPermalink
1st SessionCommentsClose CommentsPermalink
H. R. 4173CommentsClose CommentsPermalink
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.CommentsClose CommentsPermalink
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, CommentsClose CommentsPermalink
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘The Wall Street Reform and Consumer Protection Act of 2009’.CommentsClose CommentsPermalink
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:CommentsClose CommentsPermalink
Sec. 1. Short title.CommentsClose CommentsPermalink
Sec. 2. Table of contents.CommentsClose CommentsPermalink
TITLE I--FINANCIAL STABILITY IMPROVEMENT ACT
Sec. 1000. Short title; definitions.CommentsClose CommentsPermalink
Sec. 1000A. Restrictions on the Federal Reserve System pending audit report.CommentsClose CommentsPermalink
Subtitle A--The Financial Services Oversight Council
Sec. 1001. Financial Services Oversight Council established.CommentsClose CommentsPermalink
Sec. 1002. Resolution of disputes among Federal financial regulatory agencies.CommentsClose CommentsPermalink
Sec. 1003. Technical and professional advisory committees.CommentsClose CommentsPermalink
Sec. 1004. Financial Services Oversight Council meetings and council governance.CommentsClose CommentsPermalink
Sec. 1005. Council staff and funding.CommentsClose CommentsPermalink
Sec. 1006. Reports to the Congress.CommentsClose CommentsPermalink
Sec. 1007. Applicability of certain Federal laws.CommentsClose CommentsPermalink
Sec. 1008. Oversight by GAO.CommentsClose CommentsPermalink
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.CommentsClose CommentsPermalink
Sec. 1101. Council and Board authority to obtain information.CommentsClose CommentsPermalink
Sec. 1102. Council prudential regulation recommendations to Federal financial regulatory agencies; agency authority.CommentsClose CommentsPermalink
Sec. 1103. Subjecting financial companies to stricter prudential standards for financial stability purposes.CommentsClose CommentsPermalink
Sec. 1104. Stricter prudential standards for certain financial holding companies for financial stability purposes.CommentsClose CommentsPermalink
Sec. 1105. Mitigation of systemic risk.CommentsClose CommentsPermalink
Sec. 1106. Subjecting activities or practices to stricter prudential standards for financial stability purposes.CommentsClose CommentsPermalink
Sec. 1107. Stricter regulation of activities and practices for financial stability purposes.CommentsClose CommentsPermalink
Sec. 1108. Effect of rescission of identification.CommentsClose CommentsPermalink
Sec. 1109. Emergency financial stabilization.CommentsClose CommentsPermalink
Sec. 1110. Corporation mustAdditional related amendments.CommentsClose CommentsPermalink
Sec. 1111. Corporation may receive warrants when paying or risking taxpayer funds.CommentsClose CommentsPermalink
Sec. 11112. Examinations and enforcement actions for insurance and resolutions purposes.CommentsClose CommentsPermalink
Sec. 11123. Study of the effects of size and complexity of financial institutions on capital market efficiency and economic growth.CommentsClose CommentsPermalink
Sec. 11134. Exercise of Federal Reserve authority.CommentsClose CommentsPermalink
Sec. 11145. Stress tests.CommentsClose CommentsPermalink
Sec. 11156. Contingent Capital.CommentsClose CommentsPermalink
Sec. 11167. Restriction on proprietary trading by designated financial holding companies.CommentsClose CommentsPermalink
Sec. 11178. Rule of construction.CommentsClose CommentsPermalink
Sec. 1119. Antitrust savings clause.CommentsClose CommentsPermalink
Subtitle C--Improvements to Supervision and Regulation of Federal Depository Institutions
Sec. 1201. Definitions.CommentsClose CommentsPermalink
Sec. 1202. Amendments to the Home Owners’ Loan Act relating to transfer of functions.CommentsClose CommentsPermalink
Sec. 1203. Amendments to the revised statutes.CommentsClose CommentsPermalink
Sec. 1204. Power and duties transferred.CommentsClose CommentsPermalink
Sec. 1205. Transfer date.CommentsClose CommentsPermalink
Sec. 1206. Expiration of term of comptroller.CommentsClose CommentsPermalink
Sec. 1207. Office of Thrift Supervision abolished.CommentsClose CommentsPermalink
Sec. 1208. Savings provisions.CommentsClose CommentsPermalink
Sec. 1209. Regulations and orders.CommentsClose CommentsPermalink
Sec. 1210. Coordination of transition activities.CommentsClose CommentsPermalink
Sec. 1211. Interim responsibilities of office of the comptroller of the currency and office of thrift supervision.CommentsClose CommentsPermalink
Sec. 1212. Employees transferred.CommentsClose CommentsPermalink
Sec. 1213. Property transferred.CommentsClose CommentsPermalink
Sec. 1214. Funds transferred.CommentsClose CommentsPermalink
Sec. 1215. Disposition of affairs.CommentsClose CommentsPermalink
Sec. 1216. Continuation of services.CommentsClose CommentsPermalink
Sec. 1217. Contracting and leasing authority.CommentsClose CommentsPermalink
Sec. 1218. Treatment of savings and loan holding companies.CommentsClose CommentsPermalink
Sec. 1219. Practices of certain mutual thrift holding companies preserved.CommentsClose CommentsPermalink
Sec. 1220. Implementation plan and reports.CommentsClose CommentsPermalink
Sec. 1221. Composition of board of directors of the Federal Deposit Insurance Corporation.CommentsClose CommentsPermalink
Sec. 1222. Amendments to section 3.CommentsClose CommentsPermalink
Sec. 1223. Amendments to section 7.CommentsClose CommentsPermalink
Sec. 1224. Amendments to section 8.CommentsClose CommentsPermalink
Sec. 1225. Amendments to section 11.CommentsClose CommentsPermalink
Sec. 1226. Amendments to section 13.CommentsClose CommentsPermalink
Sec. 1227. Amendments to section 18.CommentsClose CommentsPermalink
Sec. 1228. Amendments to section 28.CommentsClose CommentsPermalink
Sec. 1229. Amendments to the Alternative Mortgage Transaction Parity Act of 1982.CommentsClose CommentsPermalink
Sec. 1230. Amendments to the Bank Holding Company Act of 1956.CommentsClose CommentsPermalink
Sec. 1231. Amendments to the Bank Protection Act of 1968.CommentsClose CommentsPermalink
Sec. 1232. Amendments to the Bank Service Company Act.CommentsClose CommentsPermalink
Sec. 1233. Amendments to the Community Reinvestment Act of 1977.CommentsClose CommentsPermalink
Sec. 1234. Amendments to the Depository Institution Management Interlocks Act.CommentsClose CommentsPermalink
Sec. 1235. Amendments to the Emergency Homeowners’ Relief Act.CommentsClose CommentsPermalink
Sec. 1236. Amendments to the Equal Credit Opportunity Act.CommentsClose CommentsPermalink
Sec. 1237. Amendments to the Federal Credit Union Act.CommentsClose CommentsPermalink
Sec. 1238. Amendments to the Federal Financial Institutions Examination Council Act of 1978.CommentsClose CommentsPermalink
Sec. 1239. Amendments to the Federal Home Loan Bank Act.CommentsClose CommentsPermalink
Sec. 1240. Amendments to the Federal Reserve Act.CommentsClose CommentsPermalink
Sec. 1241. Amendments to the Financial Institutions Reform, Recovery, and Enforcement Act of 1989.CommentsClose CommentsPermalink
Sec. 1242. Amendments to the Housing Act of 1948.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 1992.CommentsClose CommentsPermalink
Sec. 1244. Amendment to the Housing and Urban-Rural Recovery Act of 1983.CommentsClose CommentsPermalink
Sec. 1245. Amendments to the National Housing Act.CommentsClose CommentsPermalink
Sec. 1246. Amendments to the Right to Financial Privacy Act of 1978.CommentsClose CommentsPermalink
Sec. 1247. Amendments to the Balanced Budget and Emergency Deficit Control Act of 1985.CommentsClose CommentsPermalink
Sec. 1248. Amendments to the Crime Control Act of 1990.CommentsClose CommentsPermalink
Sec. 1249. Amendment to the Flood Disaster Protection Act of 1973.CommentsClose CommentsPermalink
Sec. 1250. Amendment to the Investment Company Act of 1940.CommentsClose CommentsPermalink
Sec. 1251. Amendment to the Neighborhood Reinvestment Corporation Act.CommentsClose CommentsPermalink
Sec. 1252. Amendments to the Securities Exchange Act of 1934.CommentsClose CommentsPermalink
Sec. 1253. Amendments to title 18, United States Code.CommentsClose CommentsPermalink
Sec. 1254. Amendments to title 31, United States Code.CommentsClose CommentsPermalink
Sec. 1255. Requirement for Countercyclical Capital Requirements.CommentsClose CommentsPermalink
Sec. 1256. Transfer of authority to the Board with respect to savings and loan holding companies.CommentsClose CommentsPermalink
Sec. 1257. Effective date.CommentsClose CommentsPermalink
Subtitle D--Further Improvements to the Regulation of Bank Holding Companies and Depository Institutions
Sec. 1301. Treatment of industrial loan companies, savings associations, and certain other companies under the bank holding company act.CommentsClose CommentsPermalink
Sec. 1302. Registration of certain companies as bank holding companies.CommentsClose CommentsPermalink
Sec. 1303. Reports and examinations of bank holding companies; regulation of functionally regulated subsidiaries.CommentsClose CommentsPermalink
Sec. 1304. Requirements for financial holding companies to remain well capitalized and well managed.CommentsClose CommentsPermalink
Sec. 1305. Standards for interstate acquisitions.CommentsClose CommentsPermalink
Sec. 1306. Enhancing existing restrictions on bank transactions with affiliates.CommentsClose CommentsPermalink
Sec. 1307. Eliminating exceptions for transactions with financial subsidiaries.CommentsClose CommentsPermalink
Sec. 1308. Lending limits applicable to credit exposure on derivative transactions, repurchase agreements, reverse repurchase agreements, and securities lending and borrowing transactions.CommentsClose CommentsPermalink
Sec. 1309. Restriction on conversions of troubled banks and thrifts.CommentsClose CommentsPermalink
Sec. 1310. Lending limits to insiders.CommentsClose CommentsPermalink
Sec. 1311. Limitations on purchases of assets from insiders.CommentsClose CommentsPermalink
Sec. 1312. Rules regarding capital levels of bank holding companies.CommentsClose CommentsPermalink
Sec. 1313. Enhancements to factors to be considered in certain acquisitions.CommentsClose CommentsPermalink
Sec. 1314. Elimination of elective investment bank holding company framework.CommentsClose CommentsPermalink
Sec. 1315. Examination fees for large bank holding companies.CommentsClose CommentsPermalink
Sec. 1316. Mutual national banks and Federal mutual bank holding companies authorized.CommentsClose CommentsPermalink
Sec. 1317. Nationwide Deposit Cap for Interstate Acquisitions.CommentsClose CommentsPermalink
Sec. 1318. De novo branching into states.CommentsClose CommentsPermalink
Subtitle E--Improvements to the Federal Deposit Insurance Fund
Sec. 1401. Accounting for actual risk to the Deposit Insurance Fund.CommentsClose CommentsPermalink
Sec. 1402. Creating a risk-focused assessment base.CommentsClose CommentsPermalink
Sec. 1403. Elimination of procyclical assessments.CommentsClose CommentsPermalink
Sec. 1404. Enhanced access to information for deposit insurance purposes.CommentsClose CommentsPermalink
Sec. 1405. Transition reserve ratio requirements to reflect new assessment base.CommentsClose CommentsPermalink
Subtitle F--Improvements to the Asset-bBacked Securitization Process
Sec. 1501. Short title.CommentsClose CommentsPermalink
Sec. 1502. Credit risk retention.CommentsClose CommentsPermalink
Sec. 1503. Periodic and other reporting under the Securities Exchange Act of 1934 for asset-backed securities.CommentsClose CommentsPermalink
Sec. 1504. Representations and warranties in asset-backed offerings.CommentsClose CommentsPermalink
Sec. 1505. Exempted transactions under the Securities Act of 1933.CommentsClose CommentsPermalink
Sec. 1506. Study on the macroeconomic effects of risk retention requirements.CommentsClose CommentsPermalink
Subtitle G--Enhanced Dissolution Authority
Sec. 1601. Short title; Purpose.CommentsClose CommentsPermalink
Sec. 1602. Definitions.CommentsClose CommentsPermalink
Sec. 1603. Systemic risk determination.CommentsClose CommentsPermalink
Sec. 1604. ReDissolution; stabilization.CommentsClose CommentsPermalink
Sec. 1605. Judicial review.CommentsClose CommentsPermalink
Sec. 1606. Directors not liable for acquiescing in appointment of receiver.CommentsClose CommentsPermalink
Sec. 1607. Termination and exclusion of other actions.CommentsClose CommentsPermalink
Sec. 1608. Rulemaking.CommentsClose CommentsPermalink
Sec. 1609. Powers and duties of corporation.CommentsClose CommentsPermalink
Sec. 1610. Clarification of prohibition regarding concealment of assets from receiver or liquidating agent.CommentsClose CommentsPermalink
Sec. 1611. Office of ReDissolution.CommentsClose CommentsPermalink
Sec. 1612. Miscellaneous provisions.CommentsClose CommentsPermalink
Sec. 1613. Amendment to Federal Deposit Insurance Act.CommentsClose CommentsPermalink
Sec. 1614. Application of executive compensation limitations.CommentsClose CommentsPermalink
Sec. 1615. Study on the effect of safe harbor provisions in insolvency cases.CommentsClose CommentsPermalink
Sec. 1616. Treasury study.CommentsClose CommentsPermalink
Sec. 1617. Priority of claims in federal deposit insurance act.CommentsClose CommentsPermalink
Subtitle H--Additional Improvements for Financial Crisis Management
Sec. 1701. Additional improvements for financial crisis management.CommentsClose CommentsPermalink
Sec. 1702. Certain restrictions related to foreign currency swap authority.CommentsClose CommentsPermalink
Sec. 1703. Additional oversight of financial regulatory system.CommentsClose CommentsPermalink
Subtitle I--Miscellaneous
Sec. 1801. Inclusion of minorities and women; Diversity in agency workforce.CommentsClose CommentsPermalink
Sec. 1802. Federal Housing Finance Agency advisory role in FIEC.CommentsClose CommentsPermalink
Subtitle J--International Policy Coordination
Sec. 1901. International policy coordination.CommentsClose CommentsPermalink
Subtitle K--International Financial Provisions
Sec. 1951. Access to United States financial market by foreign institutions.CommentsClose CommentsPermalink
Sec. 1952. Reducing TARP funds to offset costs.CommentsClose CommentsPermalink
Subtitle L--Securities Holding Companies
Sec. 1961. Securities holding companies.CommentsClose CommentsPermalink
TITLE II--CORPORATE AND FINANCIAL INSTITUTION COMPENSATION FAIRNESS ACT
Sec. 2001. Short title.CommentsClose CommentsPermalink
Sec. 2002. Shareholder vote on executive compensation disclosures.CommentsClose CommentsPermalink
Sec. 2003. Compensation committee independence.CommentsClose CommentsPermalink
Sec. 2004. Enhanced compensation structure reporting to reduce perverse incentives.CommentsClose CommentsPermalink
TITLE III--OVER-THE-COUNTER DERIVATIVESDERIVATIVE MARKETS TRANSPARENCY AND ACCOUNTABILITY ACT
Sec. 3001. Short title.CommentsClose CommentsPermalink
Sec. 3002. Review of regulatory authority.CommentsClose CommentsPermalink
Sec. 3003. International harmonization.CommentsClose CommentsPermalink
Sec. 3004. Prohibition against government assistance.CommentsClose CommentsPermalink
Sec. 3005. Studies.CommentsClose CommentsPermalink
Sec. 3006. Recommendations for changes to insolvency laws.CommentsClose CommentsPermalink
Sec. 3007. Abusive swaps.CommentsClose CommentsPermalink
Sec. 3008. Authority to prohibit participation in swap activities.CommentsClose CommentsPermalink
Sec. 3009. Memorandum.CommentsClose CommentsPermalink
Subtitle A--Regulation of Swap Markets
Sec. 3101. Definitions.CommentsClose CommentsPermalink
Sec. 3102. Jurisdiction.CommentsClose CommentsPermalink
Sec. 3103. Clearing and execution transparency.CommentsClose CommentsPermalink
Sec. 3104. Public reporting of aggregate swap data.CommentsClose CommentsPermalink
Sec. 3105. Swap repositories.CommentsClose CommentsPermalink
Sec. 3106. Reporting and recordkeeping.CommentsClose CommentsPermalink
Sec. 3107. Registration and regulation of swap dealers and major swap participants.CommentsClose CommentsPermalink
Sec. 3108. Segregation of assets held as collateral in swap transactions.Sec. 3109. Conflicts of interest.CommentsClose CommentsPermalink
Sec. 311009. Swap execution facilities.CommentsClose CommentsPermalink
Sec. 31110. Derivatives transaction execution facilities and exempt boards of trade.CommentsClose CommentsPermalink
Sec. 31121. Designated contract markets.CommentsClose CommentsPermalink
Sec. 3112. Margin.CommentsClose CommentsPermalink
Sec. 3113. Position limits.CommentsClose CommentsPermalink
Sec. 3114. Enhanced authority over registered entities.CommentsClose CommentsPermalink
Sec. 3115. Foreign boards of trade.CommentsClose CommentsPermalink
Sec. 3116. Legal certainty for swaps.CommentsClose CommentsPermalink
Sec. 3117. Multilateral clearing organizationFDICIA amendments.CommentsClose CommentsPermalink
Sec. 3118. Primary eEnforcement authority.CommentsClose CommentsPermalink
Sec. 3119. Enforcement.CommentsClose CommentsPermalink
Sec. 3120. Retail commodity transactions.CommentsClose CommentsPermalink
Sec. 3121. Large swap trader reporting.CommentsClose CommentsPermalink
Sec. 3122. Authority to ban abusive swapSegregation of assets held as collateral in swap transactions.CommentsClose CommentsPermalink
Sec. 3123. International harmonizationOther authority.CommentsClose CommentsPermalink
Sec. 3124. Authority to ban access to the United States Financial Systemntitrust.CommentsClose CommentsPermalink
Sec. 3125. Other authorityReview of prior actions.CommentsClose CommentsPermalink
Sec. 3126. AntitrustExpedited process.CommentsClose CommentsPermalink
Sec. 3127. Effective date.CommentsClose CommentsPermalink
Subtitle B--Regulation of Security-Based Swap Markets
Sec. 3201. Definitions under the Securities Exchange Act of 1934.CommentsClose CommentsPermalink
Sec. 3202. Repeal of prohibition on regulation of security-based swaps.CommentsClose CommentsPermalink
Sec. 3203. Amendments to the Securities Exchange Act of 1934.CommentsClose CommentsPermalink
Sec. 3204. Registration and regulation of swap dealers and major swap participants.CommentsClose CommentsPermalink
Sec. 3205. National security exchange registration requirements.Sec. 3206. Reporting and recordkeeping.CommentsClose CommentsPermalink
Sec. 32076. State gaming and bucket shop laws.CommentsClose CommentsPermalink
Sec. 32087. Amendments to the Securities Act of 1933; treatment of security-based swaps.CommentsClose CommentsPermalink
Sec. 32098. Other authority.CommentsClose CommentsPermalink
Sec. 321009. Jurisdiction.CommentsClose CommentsPermalink
Sec. 32110. Effective date.CommentsClose CommentsPermalink
Subtitle C--MiscellaneousImproved Financial and Commodity Markets Oversight and Accountability
Sec. 3301. Study on feasibility of requiring use of standardized algorithmic descriptions for financial derivativesElevation of certain Inspectors General to appointment pursuant to section 3 of the Inspector General Act of 1978.CommentsClose CommentsPermalink
Sec. 3302. Study of desirability and feasibility of establishing single regulator for all transactions involving financial derivativesContinuation of provisions relating to personnel.CommentsClose CommentsPermalink
Sec. 3303. Recommendations for changes to insolvency lawsCorrective responses by heads of certain establishments to deficiencies identified by Inspectors General.CommentsClose CommentsPermalink
Sec. 3304. Prohibition against government assistanceEffective date; transition rule.CommentsClose CommentsPermalink
Sec. 3305. Authority of the Commodity Futures Trading Commission to define ‘commercial risk’, ‘operating risk’, and ‘balance sheet risk’.CommentsClose CommentsPermalink
Sec. 3306. Conflicts of interest in clearing organizations.CommentsClose CommentsPermalink
Sec. 3307. Definitions of major swap participant and major security-based swap participant.CommentsClose CommentsPermalink
TITLE IV--CONSUMER FINANCIAL PROTECTION AGENCY ACT
Sec. 4001. Short title.CommentsClose CommentsPermalink
Sec. 4002. Definitions.CommentsClose CommentsPermalink
Subtitle A--Establishment of the Agency
Sec. 4101. Establishment of the Consumer Financial Protection Agency.CommentsClose CommentsPermalink
Sec. 4102. Director.CommentsClose CommentsPermalink
Sec. 4103. Establishment and composition of the commission.CommentsClose CommentsPermalink
Sec. 4104. Consumer Financial Protection Oversight Board.CommentsClose CommentsPermalink
Sec. 41045. Executive and administrative powers.CommentsClose CommentsPermalink
Sec. 41056. Administration.CommentsClose CommentsPermalink
Sec. 41067. Consumer Advisory Board.CommentsClose CommentsPermalink
Sec. 41078. Coordination.CommentsClose CommentsPermalink
Sec. 41089. Reports to the Congress.CommentsClose CommentsPermalink
Sec. 410910. GAO small business studies.CommentsClose CommentsPermalink
Sec. 4111. Funding; fees and assessments; penalties and fines.CommentsClose CommentsPermalink
Sec. 41102. Amendments relating to other administrative provisions.CommentsClose CommentsPermalink
Sec. 41113. Oversight by GAO.CommentsClose CommentsPermalink
Sec. 4114. Effective date.CommentsClose CommentsPermalink
Subtitle B--General Powers of the Director and Agency
Sec. 4201. Mandate and objectives.CommentsClose CommentsPermalink
Sec. 4202. Authorities.CommentsClose CommentsPermalink
Sec. 4203. Examination and enforcement for small banks, thrifts, and credit unions.CommentsClose CommentsPermalink
Sec. 4204. Simultaneous and coordinated supervisory action.CommentsClose CommentsPermalink
Sec. 4205. Limitations on authority of agency and director.CommentsClose CommentsPermalink
Sec. 4206. Collection of information; confidentiality regulations.CommentsClose CommentsPermalink
Sec. 4207. Monitoring; assessments of significant regulations; reports.CommentsClose CommentsPermalink
Sec. 4208. Authority to restrict mandatory predispute arbitration.CommentsClose CommentsPermalink
Sec. 4209. Registration and supervision of nondepository covered persons.CommentsClose CommentsPermalink
Sec. 4210. Effective date.CommentsClose CommentsPermalink
Subtitle C--Specific Authorities
Sec. 4301. Prohibiting unfair, deceptive, or abusive acts or practices.CommentsClose CommentsPermalink
Sec. 4302. Disclosures.CommentsClose CommentsPermalink
Sec. 4303. Sales practices.CommentsClose CommentsPermalink
Sec. 4304. Pilot disclosures.CommentsClose CommentsPermalink
Sec. 4305. Adopting operational standards to deter unfair, deceptive, or abusive practices.CommentsClose CommentsPermalink
Sec. 4306. Duties.CommentsClose CommentsPermalink
Sec. 4307. Consumer rights to access information.CommentsClose CommentsPermalink
Sec. 4308. Prohibited acts.CommentsClose CommentsPermalink
Sec. 4309. Treatment of remittance transfers.CommentsClose CommentsPermalink
Sec. 4310. Effective date.CommentsClose CommentsPermalink
Sec. 4311. No authority to require the offering of financial products or services.CommentsClose CommentsPermalink
Sec. 4312. Appraisal independence requirements.CommentsClose CommentsPermalink
Sec. 4313. Overdraft protection notice requirements.CommentsClose CommentsPermalink
Sec. 4314. Review, report, and program with respect to exchange facilitators.CommentsClose CommentsPermalink
Sec. 4315. Regulation of person-to-person lending.CommentsClose CommentsPermalink
Sec. 4316. Treatment of reverse mortgages.CommentsClose CommentsPermalink
Subtitle D--Preservation of State Law
Sec. 4401. Relation to State law.CommentsClose CommentsPermalink
Sec. 4402. Preservation of enforcement powers of States.CommentsClose CommentsPermalink
Sec. 4403. Preservation of existing contracts.CommentsClose CommentsPermalink
Sec. 4404. State law preemption standards for national banks and subsidiaries clarified.CommentsClose CommentsPermalink
Sec. 4405. Visitorial standards.CommentsClose CommentsPermalink
Sec. 4406. Clarification of law applicable to nondepository institution subsidiaries.CommentsClose CommentsPermalink
Sec. 4407. State law preemption standards for Federal savings associations and subsidiaries clarified.CommentsClose CommentsPermalink
Sec. 4408. Visitorial standards.CommentsClose CommentsPermalink
Sec. 4409. Clarification of law applicable to nondepository institution subsidiaries.CommentsClose CommentsPermalink
Sec. 4410. Effective date.CommentsClose CommentsPermalink
Subtitle E--Enforcement Powers
Sec. 4501. Definitions.CommentsClose CommentsPermalink
Sec. 4502. Investigations and administrative discovery.CommentsClose CommentsPermalink
Sec. 4503. Hearings and adjudication proceedings.CommentsClose CommentsPermalink
Sec. 4504. Litigation authority.CommentsClose CommentsPermalink
Sec. 4505. Relief available.CommentsClose CommentsPermalink
Sec. 4506. Referrals for criminal proceedings.CommentsClose CommentsPermalink
Sec. 4507. Employee protection.CommentsClose CommentsPermalink
Sec. 4508. No private right of action.CommentsClose CommentsPermalink
Sec. 4509. Effective date.CommentsClose CommentsPermalink
Subtitle F--Transfer of Functions and Personnel; Transitional Provisions
Sec. 4601. Transfer of certain functions.CommentsClose CommentsPermalink
Sec. 4602. Designated transfer date.CommentsClose CommentsPermalink
Sec. 4603. Savings provisions.CommentsClose CommentsPermalink
Sec. 4604. Transfer of certain personnel.CommentsClose CommentsPermalink
Sec. 4605. Incidental transfers.CommentsClose CommentsPermalink
Sec. 4606. Interim authority of the Secretary.CommentsClose CommentsPermalink
Subtitle G--Regulatory Improvements
Sec. 4701. Collection of deposit account data.CommentsClose CommentsPermalink
Sec. 4702. Small business data collection.CommentsClose CommentsPermalink
Sec. 4703. Annual financial autopsy.CommentsClose CommentsPermalink
Sec. 4704. Reporting of mortgage data by State.CommentsClose CommentsPermalink
Subtitle H--Conforming Amendments
Sec. 4801. Amendments to the Inspector General Act of 1978.CommentsClose CommentsPermalink
Sec. 4802. Amendments to the Privacy Act of 1974.CommentsClose CommentsPermalink
Sec. 4803. Amendments to the Alternative Mortgage Transaction Parity Act of 1982.CommentsClose CommentsPermalink
Sec. 4804. Amendments to the Consumer Credit Protection Act.CommentsClose CommentsPermalink
Sec. 4805. Amendments to the Expedited Funds Availability Act.CommentsClose CommentsPermalink
Sec. 4806. Amendments to the Federal Deposit Insurance Act.CommentsClose CommentsPermalink
Sec. 4807. Amendments to the Gramm-Leach-Bliley Act.CommentsClose CommentsPermalink
Sec. 4808. Amendments to the Home Mortgage Disclosure Act of 1975.CommentsClose CommentsPermalink
Sec. 4809. Amendments to division D of the Omnibus Appropriations Act, 2009.CommentsClose CommentsPermalink
Sec. 4810. Amendments to the Homeowners Protection Act of 1998.CommentsClose CommentsPermalink
Sec. 4811. Amendments to the Real Estate Settlement Procedures Act of 1974.CommentsClose CommentsPermalink
Sec. 4812. Amendments to the Right to Financial Privacy Act of 1978.CommentsClose CommentsPermalink
Sec. 4813. Amendments to the Secure and Fair Enforcement for Mortgage Licensing Act of 2008.CommentsClose CommentsPermalink
Sec. 4814. Amendments to the Truth in Savings Act.CommentsClose CommentsPermalink
Sec. 4815. Amendments to the Telemarketing and Consumer Fraud and AbuseAbuse and Prevention Act.CommentsClose CommentsPermalink
Sec. 4816. Membership in Financial Literacy and Education Commission.CommentsClose CommentsPermalink
Sec. 4817. Effective date.CommentsClose CommentsPermalink
Sec. 4818. Amendments to Truth in Lending Act.CommentsClose CommentsPermalink
Subtitle I--Improvements to the Federal Trade Commission Act
Sec. 4901. Amendments to the Federal Trade Commission Act.CommentsClose CommentsPermalink
Subtitle J--Miscellaneous
Sec. 4951. Requirements for State-licensed loan originators.CommentsClose CommentsPermalink
TITLE V--CAPITAL MARKETS
Subtitle A--Private Fund Investment Advisers Registration Act
Sec. 5001. Short title.CommentsClose CommentsPermalink
Sec. 5002. Definitions.CommentsClose CommentsPermalink
Sec. 5003. Elimination of private adviser exemption; Limited exemption for foreign private fund advisers; Limited intrastate exemption.CommentsClose CommentsPermalink
Sec. 5004. Collection of systemic risk data.CommentsClose CommentsPermalink
Sec. 5005. Elimination of disclosure provision.CommentsClose CommentsPermalink
Sec. 5006. Exemption of and reporting by venture capital fund advisers.CommentsClose CommentsPermalink
Sec. 5007. Exemption of and reporting by certain private fund advisers.CommentsClose CommentsPermalink
Sec. 5008. Clarification of rulemaking authority.CommentsClose CommentsPermalink
Sec. 5009. GAO study.CommentsClose CommentsPermalink
Sec. 5010. Effective date; Transition period.CommentsClose CommentsPermalink
Sec. 5011. Qualified client standard.CommentsClose CommentsPermalink
Subtitle B--Accountability and Transparency in Rating Agencies Act
Sec. 6001. Short title.CommentsClose CommentsPermalink
Sec. 6002. Enhanced regulation of nationally recognized statistical rating organizations.CommentsClose CommentsPermalink
Sec. 6003. Standards for private actions.CommentsClose CommentsPermalink
Sec. 6004. Issuer disclosure of preliminary ratings.CommentsClose CommentsPermalink
Sec. 6005. Change to designation.CommentsClose CommentsPermalink
Sec. 6006. Timeline for regulations.CommentsClose CommentsPermalink
Sec. 6007. Elimination of exemption from fair disclosure rule.CommentsClose CommentsPermalink
Sec. 6008. Advisory Board.CommentsClose CommentsPermalink
Sec. 6009. Removal of statutory references to credit ratings.CommentsClose CommentsPermalink
Sec. 6010. Review of reliance on ratings.CommentsClose CommentsPermalink
Sec. 6011. Publication of rating histories on the EDGAR system.CommentsClose CommentsPermalink
Sec. 6012. Effect of Rule 436(g).CommentsClose CommentsPermalink
Sec. 6013. Studies.CommentsClose CommentsPermalink
Subtitle C--Investor Protection Act
Sec. 7001. Short title.CommentsClose CommentsPermalink
Part 1--Disclosure
Sec. 7101. Investor Advisory Committee established.CommentsClose CommentsPermalink
Sec. 7102. Clarification of the Commission’s authority to engage in consumer testing.CommentsClose CommentsPermalink
Sec. 7103. Establishment of a fiduciary duty for brokers, dealers, and investment advisers, and harmonization of regulation.CommentsClose CommentsPermalink
Sec. 7104. Commission study and rulemaking on disclosure to retail customers before purchase of products or services.CommentsClose CommentsPermalink
Sec. 7105. Beneficial ownership and short-swing profit reporting.CommentsClose CommentsPermalink
Sec. 7106. Revision to recordkeeping rules.CommentsClose CommentsPermalink
Sec. 7107. Study on enhancing investment advisor er examinations.CommentsClose CommentsPermalink
Sec. 7108. GAO study of financial planning.CommentsClose CommentsPermalink
Part 2--Enforcement and Remedies
Sec. 7201. Authority to restrict mandatory pre-dispute arbitration.CommentsClose CommentsPermalink
Sec. 7202. Comptroller General study to review securities arbitration system.CommentsClose CommentsPermalink
Sec. 7203. Whistleblower protection.CommentsClose CommentsPermalink
Sec. 7204. Conforming amendments for whistleblower protection.CommentsClose CommentsPermalink
Sec. 7205. Implementation and transition provisions for whistleblower protections.CommentsClose CommentsPermalink
Sec. 7206. Collateral bars.CommentsClose CommentsPermalink
Sec. 7207. Aiding and abetting authority under the Securities Act and the Investment Company Act.CommentsClose CommentsPermalink
Sec. 7208. Authority to impose penalties for aiding and abetting violations of the Investment Advisers Act.CommentsClose CommentsPermalink
Sec. 7209. Deadline for completing examinations, inspections and enforcement actions.CommentsClose CommentsPermalink
Sec. 7210. Nationwide service of subpoenas.CommentsClose CommentsPermalink
Sec. 7211. Authority to impose civil penalties in cease and desist proceedings.CommentsClose CommentsPermalink
Sec. 7212. Formerly associated persons.CommentsClose CommentsPermalink
Sec. 7213. Sharing privileged information with other authorities.CommentsClose CommentsPermalink
Sec. 7214. Expanded access to grand jury materialinformation.CommentsClose CommentsPermalink
Sec. 7215. Aiding and abetting standard of knowledge satisfied by recklessness.CommentsClose CommentsPermalink
Sec. 7216. Extraterritorial jurisdiction of the antifraud provisions of the Federal securities laws.CommentsClose CommentsPermalink
Sec. 7217. Fidelity bonding.CommentsClose CommentsPermalink
Sec. 7218. Enhanced SEC authority to conduct surveillance and risk assessment.CommentsClose CommentsPermalink
Sec. 7219. Investment company examinations.CommentsClose CommentsPermalink
Sec. 7220. Control person liability under the Securities Exchange Act.CommentsClose CommentsPermalink
Sec. 7221. Enhanced application of anti-fraud provisions.CommentsClose CommentsPermalink
Sec. 7222. SEC authority to issue rules on proxy access.CommentsClose CommentsPermalink
Part 3--Commission Funding and Organization
Sec. 7301. Authorization of appropriations.CommentsClose CommentsPermalink
Sec. 7302. Investment adviser regulation funding.CommentsClose CommentsPermalink
Sec. 7303. Amendments to section 31 of the Securities Exchange Act of 1934.CommentsClose CommentsPermalink
Sec. 7304. Commission organizational study and reform.CommentsClose CommentsPermalink
Sec. 7305. Capital Markets Safety Board.CommentsClose CommentsPermalink
Sec. 7306. Report on implementation of ‘post-Madoff reforms’.CommentsClose CommentsPermalink
Sec. 7307. Joint Advisory Committee.CommentsClose CommentsPermalink
Part 4--Additional Commission Reforms
Sec. 7401. Regulation of securities lending.CommentsClose CommentsPermalink
Sec. 7402. Lost and stolen securities.CommentsClose CommentsPermalink
Sec. 7403. Fingerprinting.CommentsClose CommentsPermalink
Sec. 7404. Equal treatment of self-regulatory organization rules.CommentsClose CommentsPermalink
Sec. 7405. Clarification that section 205 of the Investment Advisers Act of 1940 does not apply to State-registered advisers.CommentsClose CommentsPermalink
Sec. 7406. Conforming amendments for the repeal of the Public Utility Holding Company Act of 1935.CommentsClose CommentsPermalink
Sec. 7407. Promoting transparency in financial reporting.CommentsClose CommentsPermalink
Sec. 7408. Unlawful margin lending.CommentsClose CommentsPermalink
Sec. 7409. Protecting confidentiality of materials submitted to the Commission.CommentsClose CommentsPermalink
Sec. 7410. Technical corrections.CommentsClose CommentsPermalink
Sec. 7411. Municipal securities.CommentsClose CommentsPermalink
Sec. 7412. Interested person definition.CommentsClose CommentsPermalink
Sec. 7413. Rulemaking authority to protect redeeming investors.CommentsClose CommentsPermalink
Sec. 7414. Study on SEC revolving door.CommentsClose CommentsPermalink
Sec. 7415. Study on internal control evaluation and reporting cost burdens on smaller issuers.CommentsClose CommentsPermalink
Sec. 7416. Analysis of rule regarding smaller reporting companies.CommentsClose CommentsPermalink
Sec. 7417. Financial Reporting Forum.CommentsClose CommentsPermalink
Sec. 7418. Investment advisers subject to State authorities.CommentsClose CommentsPermalink
Sec. 7419. Custodial requirements.CommentsClose CommentsPermalink
Sec. 7420. Ombudsman.CommentsClose CommentsPermalink
Sec. 7421. Notice to missing security holders.CommentsClose CommentsPermalink
Sec. 7422. Short sale reforms.CommentsClose CommentsPermalink
Sec. 7423. Streamlining of SEC filing procedures.CommentsClose CommentsPermalink
Part 5--Securities Investor Protection Act Amendments
Sec. 7501. Increasing the minimum assessment paid by SIPC members.CommentsClose CommentsPermalink
Sec. 7502. Increasing the borrowing limit on treasury loans.CommentsClose CommentsPermalink
Sec. 7503. Increasing the cash limit of protection.CommentsClose CommentsPermalink
Sec. 7504. SIPC as trustee in SIPA liquidation proceedings.CommentsClose CommentsPermalink
Sec. 7505. Insiders ineligible for SIPC advances.CommentsClose CommentsPermalink
Sec. 7506. Eligibility for direct payment procedure.CommentsClose CommentsPermalink
Sec. 7507. Increasing the fine for prohibited acts under SIPA.CommentsClose CommentsPermalink
Sec. 7508. Penalty for misrepresentation of SIPC membership or protection.CommentsClose CommentsPermalink
Sec. 7509. Futures held in a portfolio margin securities account protection.CommentsClose CommentsPermalink
Sec. 7510. Study and report on the feasibility of risk-based assessments for SIPC members.CommentsClose CommentsPermalink
Part 6--Sarbanes-Oxley Act Amendments
Sec. 7601. Public Company Accounting Oversight Board oversight of auditors of brokers and dealers.CommentsClose CommentsPermalink
Sec. 7602. Foreign regulatory information sharing.CommentsClose CommentsPermalink
Sec. 7603. Expansion of audit information to be produced and exchanged with foreign counterparts.CommentsClose CommentsPermalink
Sec. 7604. Conforming amendment related to registration.CommentsClose CommentsPermalink
Sec. 7605. Fair fund amendments.CommentsClose CommentsPermalink
Sec. 7606. Exemption for nonaccelerated filers.CommentsClose CommentsPermalink
Sec. 7607. Whistleblower protection against retaliation by a subsidiary of an issuer.CommentsClose CommentsPermalink
Sec. 7608. Congressional access to information.CommentsClose CommentsPermalink
Sec. 7609. Creation of ombudsman for the PCAOB.CommentsClose CommentsPermalink
Sec. 7610. Auditing Oversight Board.CommentsClose CommentsPermalink
Part 7--Senior Investment Protection
Sec. 7701. Findings.CommentsClose CommentsPermalink
Sec. 7702. Definitions.CommentsClose CommentsPermalink
Sec. 7703. Grants to States for enhanced protection of seniors from being mislead by false designations.CommentsClose CommentsPermalink
Sec. 7704. Applications.CommentsClose CommentsPermalink
Sec. 7705. Length of participation.CommentsClose CommentsPermalink
Sec. 7706. Authorization of appropriations.CommentsClose CommentsPermalink
Part 8--Registration of Municipal Financial Advisors
Sec. 7801. Municipal financial adviser registration requirement.CommentsClose CommentsPermalink
Sec. 7802. Conforming amendments.CommentsClose CommentsPermalink
Sec. 7803. Effective dates.CommentsClose CommentsPermalink
TITLE VI--FEDERAL INSURANCE OFFICE
Sec. 8001. Short title.CommentsClose CommentsPermalink
Sec. 8002. Federal Insurance Office established.CommentsClose CommentsPermalink
Sec. 8003. Report on global reinsurance market.CommentsClose CommentsPermalink
Sec. 8004. Study on modernization and improvement of insurance regulation in the United States.CommentsClose CommentsPermalink
Sec. 8005. Sense of Congress regarding simplified mortgage contract summaries.CommentsClose CommentsPermalink
TITLE VII--MORTGAGE REFORM AND ANTI-PREDATORY LENDING ACT
Sec. 9000. Short title; designation as enumerated consumer law.CommentsClose CommentsPermalink
Subtitle A--Residential Mortgage Loan Origination Standards
Sec. 9001. Definitions.CommentsClose CommentsPermalink
Sec. 9002. Residential mortgage loan origination.CommentsClose CommentsPermalink
Sec. 9003. Prohibition on steering incentives.CommentsClose CommentsPermalink
Sec. 9004. Liability.CommentsClose CommentsPermalink
Sec. 9005. Regulations.CommentsClose CommentsPermalink
Sec. 9006. Study of shared appreciation mortgages.CommentsClose CommentsPermalink
Subtitle B--Minimum Standards For Mortgages
Sec. 9101. Ability to repay.CommentsClose CommentsPermalink
Sec. 9102. Net tangible benefit for refinancing of residential mortgage loans.CommentsClose CommentsPermalink
Sec. 9103. Safe harbor and rebuttable presumption.CommentsClose CommentsPermalink
Sec. 9104. Liability.CommentsClose CommentsPermalink
Sec. 9105. Defense to foreclosure.CommentsClose CommentsPermalink
Sec. 9106. Additional standards and requirements.CommentsClose CommentsPermalink
Sec. 9107. Rule of construction.CommentsClose CommentsPermalink
Sec. 9108. Effect on State laws.CommentsClose CommentsPermalink
Sec. 9109. Regulations.CommentsClose CommentsPermalink
Sec. 9110. Amendments to civil liability provisions.CommentsClose CommentsPermalink
Sec. 9111. Lender rights in the context of borrower deception.CommentsClose CommentsPermalink
Sec. 9112. Six-month notice required before reset of hybrid adjustable rate mortgages.CommentsClose CommentsPermalink
Sec. 9113. Required disclosures.CommentsClose CommentsPermalink
Sec. 9114. Disclosures required in monthly statements for residential mortgage loans.CommentsClose CommentsPermalink
Sec. 9115. Legal assistance for foreclosure-related issues.CommentsClose CommentsPermalink
Sec. 9116. Effective date.CommentsClose CommentsPermalink
Sec. 9117. Report by the GAO.CommentsClose CommentsPermalink
Sec. 9118. State Attorney General enforcement authority.CommentsClose CommentsPermalink
Subtitle C--High-Cost Mortgages
Sec. 9201. Definitions relating to high-cost mortgages.CommentsClose CommentsPermalink
Sec. 9202. Amendments to existing requirements for certain mortgages.CommentsClose CommentsPermalink
Sec. 9203. Additional requirements for certain mortgages.CommentsClose CommentsPermalink
Sec. 9204. Regulations.CommentsClose CommentsPermalink
Sec. 9205. Effective date.CommentsClose CommentsPermalink
Subtitle D--Office of Housing Counseling
Sec. 9301. Short title.CommentsClose CommentsPermalink
Sec. 9302. Establishment of Office of Housing Counseling.CommentsClose CommentsPermalink
Sec. 9303. Counseling procedures.CommentsClose CommentsPermalink
Sec. 9304. Grants for housing counseling assistance.CommentsClose CommentsPermalink
Sec. 9305. Requirements to use HUD-certified counselors under HUD programs.CommentsClose CommentsPermalink
Sec. 9306. Study of defaults and foreclosures.CommentsClose CommentsPermalink
Sec. 9307. Default and foreclosure database.CommentsClose CommentsPermalink
Sec. 9308. Definitions for counseling-related programs.CommentsClose CommentsPermalink
Sec. 9309. Accountability and transparency for grant recipients.CommentsClose CommentsPermalink
Sec. 9310. Updating and simplification of mortgage information booklet.CommentsClose CommentsPermalink
Sec. 9311. Home inspection counseling.CommentsClose CommentsPermalink
Sec. 9312. Warnings to homeowners of foreclosure rescue scams.CommentsClose CommentsPermalink
Subtitle E--Mortgage Servicing
Sec. 9401. Escrow and impound accounts relating to certain consumer credit transactions.CommentsClose CommentsPermalink
Sec. 9402. Disclosure notice required for consumers who waive escrow services.CommentsClose CommentsPermalink
Sec. 9403. Real Estate Settlement Procedures Act of 1974 amendments.CommentsClose CommentsPermalink
Sec. 9404. Truth in Lending Act amendments.CommentsClose CommentsPermalink
Sec. 9405. Escrows included in repayment analysis.CommentsClose CommentsPermalink
Subtitle F--Appraisal Activities
Sec. 9501. Property appraisal requirements.CommentsClose CommentsPermalink
Sec. 9502. Unfair and deceptive practices and acts relating to certain consumer credit transactions.CommentsClose CommentsPermalink
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.CommentsClose CommentsPermalink
Sec. 9504. Study required on improvements in appraisal process and compliance programs.CommentsClose CommentsPermalink
Sec. 9505. Equal Credit Opportunity Act amendment.CommentsClose CommentsPermalink
Sec. 9506. Real Estate Settlement Procedures Act of 1974 amendment relating to certain appraisal fees.CommentsClose CommentsPermalink
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.CommentsClose CommentsPermalink
Subtitle H--Reports and Data Collection
Sec. 9701. GAO study report on government efforts to combat mortgage foreclosure rescue scams and loan modification fraud.CommentsClose CommentsPermalink
Sec. 9702. Reporting of mortgage data by State.CommentsClose CommentsPermalink
Subtitle I--Multifamily Mortgage Resolution
Sec. 9801. Multifamily mortgage resolution program.CommentsClose CommentsPermalink
Subtitle J--Study of Effect of Drywall Presence on Foreclosures
Sec. 9901. Study of effect of drywall presence on foreclosures.CommentsClose CommentsPermalink
Subtitle K--Home Affordable Modification Program
Sec. 9911. Home Affordable Modification Program guidelines.CommentsClose CommentsPermalink
Subtitle L--Making Home Affordable Program
Sec. 9921. Public availability of information.CommentsClose CommentsPermalink
TITLE VIII--FORECLOSURE AVOIDANCE AND AFFORDABLE HOUSING
Sec. 10001. Emergency mortgage relief.CommentsClose CommentsPermalink
Sec. 10002. Additional assistance for Neighborhood Stabilization Program.CommentsClose CommentsPermalink
TITLE IX--NONADMITTED AND REINSURANCE REFORM ACT
Sec. 10051. Short title.CommentsClose CommentsPermalink
Sec. 10052. Effective date.CommentsClose CommentsPermalink
Subtitle A--Nonadmitted Insurance
Sec. 10101. Reporting, payment, and allocation of premium taxes.CommentsClose CommentsPermalink
Sec. 10102. Regulation of nonadmitted insurance by insured’s home state.CommentsClose CommentsPermalink
Sec. 10103. Participation in national producer database.CommentsClose CommentsPermalink
Sec. 10104. Uniform standards for surplus lines eligibility.CommentsClose CommentsPermalink
Sec. 10105. Streamlined application for commercial purchasers.CommentsClose CommentsPermalink
Sec. 10106. GAO study of nonadmitted insurance market.CommentsClose CommentsPermalink
Sec. 10107. Definitions.CommentsClose CommentsPermalink
Subtitle B--Reinsurance
Sec. 10201. Regulation of credit for reinsurance and reinsurance agreements.CommentsClose CommentsPermalink
Sec. 10202. Regulation of reinsurer solvency.CommentsClose CommentsPermalink
Sec. 10203. Definitions.CommentsClose CommentsPermalink
Subtitle C--Rule of Construction
Sec. 10301. Rule of construction.CommentsClose CommentsPermalink
Sec. 10302. Severability.CommentsClose CommentsPermalink
TITLE X--INTEREST-BEARING TRANSACTION ACCOUNTS AUTHORIZED
Sec. 11001. Interest-bearing transaction accounts authorized.CommentsClose CommentsPermalink
TITLE I--FINANCIAL STABILITY IMPROVEMENT ACTCommentsClose CommentsPermalink
TITLE I--FINANCIAL STABILITY IMPROVEMENT ACTCommentsClose CommentsPermalink
SEC. 1000. SHORT TITLE; DEFINITIONS.
(a) Short Title- This title may be cited as the ‘Financial Stability Improvement Act of 2009’.CommentsClose CommentsPermalink
(b) Definitions- For purposes of this title, the following definitions shall apply:CommentsClose CommentsPermalink
(1) The term ‘Board’ means the Board of Governors of the Federal Reserve System.CommentsClose CommentsPermalink
(2) The term ‘Council’ means the Financial Services Oversight Council established under section 1001.CommentsClose CommentsPermalink
(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).CommentsClose CommentsPermalink
(4) The term ‘financial company’ means a company or other entity--CommentsClose CommentsPermalink
(A) that is--CommentsClose CommentsPermalink
(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; orCommentsClose CommentsPermalink
(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--CommentsClose CommentsPermalink
(I) a Federal or State branch or agency of a foreign bank as such terms are defined in the International Banking Act of 1978 (
(II) a United States affiliate or other United States operating entity of a company that is incorporated or organized in a country other than the United States; and;CommentsClose CommentsPermalink
(B) that is, in whole or in part, directly or indirectly, engaged in financial activities.(5) FINANCIAL HOLDING COMPANY ; andCommentsClose CommentsPermalink
(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 (
(5) FINANCIAL HOLDING COMPANY SUBJECT TO STRICTER STANDARDS- The term ‘financial holding company subject to stricter standards’ means--CommentsClose CommentsPermalink
(A) a financial company that has been subjected to stricter prudential standards under subtitle B; orCommentsClose CommentsPermalink
(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 activities.CommentsClose CommentsPermalink
(6) The term ‘primary financial regulatory agency’ means the following:CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(B) The Board, with respect to--CommentsClose CommentsPermalink
(i) any State member bank;CommentsClose CommentsPermalink
(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;CommentsClose CommentsPermalink
(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;CommentsClose CommentsPermalink
(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;CommentsClose CommentsPermalink
(v) any organization organized and operated under section 25 or 25A of the Federal Reserve Act (
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(D) The National Credit Union Administration, with respect to any insured credit union under the Federal Credit Union Act (
(E) The Securities and Exchange Commission, with respect to--CommentsClose CommentsPermalink
(i) any broker or dealer registered with the Securities and Exchange Commission under the Securities Exchange Act of 1934 (
(ii) any investment company registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (
(iii) any investment adviser registered with the Securities and Exchange Commission under the Investment Advisers Act of 1940 (
(iv) any clearing agency (as defined in section 3(a)(23) of the Securities Exchange Act of 1934;(v);CommentsClose CommentsPermalink
(v) a securities-based swap execution facility that is registered with the Securities and Exchange Commission under the Securities Exchange Act of 1934 (
(vi) any exchange registered as a national securities exchange with the Securities and Exchange Commission under the Securities Exchange Act of 1934 (
(vi) any credit rating i) any credit rating agency registered with the Securities and Exchange Commission under the Securities Exchange Act of 1934 (
(viii) any securities information processor registered with the Securities and Exchange Commission under the Securities Exchange Act of 1934 (
(viiiix) any transfer agent registered with the Securities and Exchange Commission under the Securities Exchange Act of 1934 (
(F) The Commodity Futures Trading Commission, with respect to--CommentsClose CommentsPermalink
(i) any futures commission merchant, any commodity trading adviser, and any commodityy retail foreign exchange dealer, and any commodity pool operator registered with the Commodity Futures Trading Commission under the Commodity Exchange Act (
(ii) any derivatives clearing organization, designated contract market, or swap execution facility (as defined in the Commodity Exchange Act).CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(H) The State insurance authority of the State in which an insurance company is domiciled, with respect to the insurance activities and activities incidental to such insurance activities of an insurance company that is subject to supervision by the State insurance authority under State insurance law.CommentsClose CommentsPermalink
(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 C.CommentsClose CommentsPermalink
(7) TERMS DEFINED IN OTHER LAWS-CommentsClose CommentsPermalink
(A) AFFILIATE- The term ‘affiliate’ has the meaning given such term in section 2(k) of the Bank Holding Company Act of 1956.CommentsClose CommentsPermalink
(B) STATE MEMBER BANK, STATE NONMEMBER BANK- The terms ‘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.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 after the date of, but no later than 2 years, after the date of the enactment of the Financial Stability Improvement Act of 2009.CommentsClose CommentsPermalink
(b) Report-CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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 subject of the report, together with such recommendations for legislative or administrative action as the Comptroller General may determine to be appropriate.CommentsClose CommentsPermalink
Subtitle A--The Financial Services Oversight CouncilCommentsClose CommentsPermalink
Subtitle A--The Financial Services Oversight CouncilCommentsClose CommentsPermalink
SEC. 1001. FINANCIAL SERVICES OVERSIGHT COUNCIL ESTABLISHED.
(a) Establishment- Immediately upon enactment of this title, there is established a Financial Services Oversight Council.CommentsClose CommentsPermalink
(b) Membership- The Council shall consist of the following:CommentsClose CommentsPermalink
(1) VOTING MEMBERS- Voting members, who shall each have one vote on the Council, as follows:CommentsClose CommentsPermalink
(A) The Secretary of the Treasury, who shall serve as the Chairman of the Council.CommentsClose CommentsPermalink
(B) The Chairman of the Board of Governors of the Federal Reserve System.CommentsClose CommentsPermalink
(C) The Comptroller of the Currency.CommentsClose CommentsPermalink
(D) The Director of the Office of Thrift Supervision, until the functions of the Director of the Office of Thrift Supervision are transferred to pursuant to subtitle C.CommentsClose CommentsPermalink
(E) The Chairman of the Securities and Exchange Commission.CommentsClose CommentsPermalink
(F) The Chairman of the Commodity Futures Trading Commission.CommentsClose CommentsPermalink
(G) The Chairperson of the Federal Deposit Insurance Corporation.CommentsClose CommentsPermalink
(H) The Director of the Federal Housing Finance Agency.CommentsClose CommentsPermalink
(I) The Chairman of the National Credit Union Administration.CommentsClose CommentsPermalink
(J) The head of the Consumer Financial Protection Agency.CommentsClose CommentsPermalink
(2) NONVOTING MEMBERS- Nonvoting members, who shall serve in an advisory capacity:(A) A State insurance and shall not be excluded from any of the Council’s proceedings, meetings, discussions, and deliberations:CommentsClose CommentsPermalink
(A) The Director of the Federal Insurance Office.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(BC) 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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(c) Duties- The Council shall have the following duties:CommentsClose CommentsPermalink
(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, orderliness, competitiveness, and stability of the United States financial markets.CommentsClose CommentsPermalink
(2) To monitor the financial services marketplace to identify potential threats to the stability of the United States financial system.CommentsClose CommentsPermalink
(3) To identify potential threats to the stability of the United States financial system that do not arise out of the financial services marketplace.CommentsClose CommentsPermalink
(4) To develop planstrategies (and conduct exercises in furtherance of those planstrategies) 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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(9) To provide a forum for discussion and analysis of emerging market developments and financial regulatory issues among its members.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
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--CommentsClose CommentsPermalink
(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 another dispute mechanism specifically has been provided under Federal lawsection 4204 or title III);CommentsClose CommentsPermalink
(2) the disputing agencies cannot, after a demonstrated good faith effort, resolve the dispute among themselves; andCommentsClose CommentsPermalink
(3) any of the Federal financial regulatory agencies involved in the dispute--CommentsClose CommentsPermalink
(A) provides all other disputants prior notice of its intent to request dispute resolution by the Council; andCommentsClose CommentsPermalink
(B) requests in writing, no earlier than 14 days after providing the notice described in paragraph (A), that the Council resolve the dispute.CommentsClose CommentsPermalink
(b) Council Decision- The Council shall decide the dispute--CommentsClose CommentsPermalink
(1) within a reasonable time after receiving the dispute resolution request;CommentsClose CommentsPermalink
(2) after consideration of relevant information provided by each party to the dispute; andCommentsClose 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 be in writing and include an explanation and shall be binding on all Federal financial regulatory agencies that are parties to the dispute.CommentsClose CommentsPermalink
SEC. 1003. TECHNICAL AND PROFESSIONAL ADVISORY COMMITTEES.
The Council is authorized to appoint--CommentsClose CommentsPermalink
(1) subsidiary working groups composed of Council members and their staff, Council staff, or a combination; andCommentsClose CommentsPermalink
(2) such temporary 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.CommentsClose CommentsPermalink
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 than quarterly.CommentsClose CommentsPermalink
(b) Voting- Unless otherwise provided, 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).CommentsClose CommentsPermalink
SEC. 1005. COUNCIL STAFF AND FUNDING.
(a) Department of the Treasury- The Secretary of the Treasury shalVoting 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--CommentsClose CommentsPermalink
(1) detail permanent staff from the Department of the Treasury to provide the Council (and any temporary special advisory, technical, or professional committees appointed by the Council) with professional and expert support; andCommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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 Secretary of the Treasury--(1)Council--CommentsClose CommentsPermalink
(1) detail department or agency staff on a temporary basis to provide additional support to the Council (and any special advisory, technical, or professional committees appointed by the Council); andCommentsClose CommentsPermalink
(2) provide such services, and facilities as the other departments or agencies may determine advisable.CommentsClose CommentsPermalink
(c) Staff Status; Council Funding-CommentsClose CommentsPermalink
(1) STATUS- Staff detailed to the Council by the Secretary of the Treasury and other United States departments or agencies shall--CommentsClose CommentsPermalink
(A) report to and be subject to oversight by the Council during their assignment to the Council; andCommentsClose CommentsPermalink
(B) be compensated by the department of agency from which the staff was detailed.CommentsClose CommentsPermalink
(2) FUNDING- The administrative expense of the Council shall be paid by the departments and agencies represented by voting members of the Council on an equal basis.CommentsClose CommentsPermalink
SEC. 1006. REPORTS TO THE CONGRESS.
(a) In General- Semiannually the Council shall submit a report to the Committee on Financial Services of the House of Representatives,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--CommentsClose CommentsPermalink
(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;CommentsClose CommentsPermalink
(2) recommends actions that will improve financial stability;CommentsClose CommentsPermalink
(3) details the size, scale, scope, concentration, activities, and interconnectedness of the 50 largest financial institutions, by total assets, in the United States;CommentsClose CommentsPermalink
(4) describes planstrategies 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 planstrategies;CommentsClose CommentsPermalink
(5) describes the nature and scope of any company or activities identified under subtitle B and steps taken to address them; andCommentsClose CommentsPermalink
(6) describes any dispute resolutions undertaken under section 1002 and the result of such resolutions.CommentsClose CommentsPermalink
(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 Financial Services of the House of RepresentativesWays 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.CommentsClose CommentsPermalink
(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--CommentsClose CommentsPermalink
(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; orCommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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 subsection (a)--CommentsClose CommentsPermalink
(1) to discuss the efforts, activities, objectives, and plans of the Council; andCommentsClose CommentsPermalink
(2) to discuss and answer questions concerning such report.CommentsClose CommentsPermalink
(e) Study of Effects Consumer Financial Protection Agency Regulations and Standards-CommentsClose CommentsPermalink
(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 regulations.CommentsClose CommentsPermalink
(2) VALUE OF NONBANK PRODUCTS- The study shall include an evaluation and assessment of the appropriateness of using ‘APR’ as a true measure of the value of all nonbank products.CommentsClose CommentsPermalink
(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 regulations to improve consumer protections and maintain access to credit.CommentsClose CommentsPermalink
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).CommentsClose CommentsPermalink
(b) The Council shall not be deemed an ‘agency’ for purposes of any State or Federal law.CommentsClose CommentsPermalink
SEC. 1008. OVERSIGHT BY GAO.
(a) Authority to Audit- The Comptroller General of the United States may audit the activities and financial transactions of--CommentsClose CommentsPermalink
(1) the Council; andCommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(b) Access to 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 General may request, to--CommentsClose CommentsPermalink
(A) any records or other information under the control of the Council; andor used by the Council;CommentsClose CommentsPermalink
(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); andCommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(2) CERTAIN INFORMATION SPECIFIED- Access under paragraph (1) includes access to--CommentsClose CommentsPermalink
(A) information provided to the Council by its voting and nonvoting members under section 1101; andCommentsClose CommentsPermalink
(B) the identity of each financial holding company subject to stricter standards.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
Subtitle B--Prudential Regulation of Companies and Activities for Financial Stability PurposesCommentsClose CommentsPermalink
Subtitle B--Prudential Regulation of Companies and Activities for Financial Stability PurposesCommentsClose CommentsPermalink
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.CommentsClose CommentsPermalink
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--CommentsClose CommentsPermalink
(1) to monitor the financial services marketplace to identify potential threats to the stability of the United States financial system;CommentsClose CommentsPermalink
(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; orCommentsClose CommentsPermalink
(3) 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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(c) Financial Company Data Collection-CommentsClose CommentsPermalink
(1) IN GENERAL- The Council or the Board may require the submission of periodic and other reports from any financial company solely for the purpose of assessing the extent to which a financial activity or financial market in which the financial company participates, or the company itself, poses a threat to financial stability.CommentsClose CommentsPermalink
(2) 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 Board shall coordinate with such agencies and shall, whenever possible, rely on information already being collected by such agencies.CommentsClose CommentsPermalink
(d)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.CommentsClose CommentsPermalink
(d) Consultation With Agencies and Entities- The Council or the Board, as appropriate, may consult with Federal and State agencies and other entities to carry out any(including the Federal Insurance Office) to carry out any of the provisions of this subtitle.CommentsClose CommentsPermalink
(e) Additional Provisions-CommentsClose CommentsPermalink
(1) DATA AND INFORMATION SHARING- The Chairman of the Council, in consultation with the other members of the Council, may--CommentsClose CommentsPermalink
(A) establish procedures to share data and information collected by the Council under this section with the members of the Council;CommentsClose CommentsPermalink
(B) develop an electronic process for sharing all information collected by the Council with the Chairman of the Board on a real-time basis;CommentsClose CommentsPermalink
and(C) issue any regulations necessary to carry out this (C) issue any regulations necessary to carry out this subsection; andCommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(2) APPLICABLE PRIVILEGES NOT WAIVED- A Federal financial regulator, State financial regulator, United States financial company, foreign financial company operating in the United States, financial market utility, or other person shall not be deemed to havecompelled 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--CommentsClose CommentsPermalink
(A) the Council;CommentsClose CommentsPermalink
(B) any Federal financial regulator or State financial regulator, in any capacity; orCommentsClose CommentsPermalink
(C) any other agency of the Federal Government (as defined in
(3) DISCLOSURE EXEMPTION- Any information obtained by the Council under this section shall be exempt from the disclosure requirements under
(4) CONSULTATION WITH FOREIGN GOVERNMENTS- Under the supervision of the President, and in a manner consistent with section 207 of the Foreign Service Act of 1980 (
(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.CommentsClose CommentsPermalink
SEC. 1102. COUNCIL PRUDENTIAL REGULATION RECOMMENDATIONS TO FEDERAL FINANCIAL REGULATORY AGENCIES.(a) In General- The Council; 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.CommentsClose CommentsPermalink
(b) Agency Authority to Implement Standards-CommentsClose CommentsPermalink
A Federal financial regulatory agency specifically is authorized to(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.CommentsClose CommentsPermalink
(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--CommentsClose CommentsPermalink
(A) give due regard to the principles of national treatment and equality of competitive opportunity; andCommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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--CommentsClose CommentsPermalink
(1) the actions the Federal financial regulatory agency has taken in response to the Council’s recommendation, additional actions contemplated, and timetables therefore; orCommentsClose CommentsPermalink
(2) the reason the Federal financial regulatory agency has failed to respond to the Council’s request.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--CommentsClose CommentsPermalink
(1) material financial distress at the company could pose a threat to financial stability or the economy; orCommentsClose CommentsPermalink
(2) the nature, scope, size, scale, concentration, and interconnectedness, or mix of the company’s activities could pose a threat to financial stability or the economy.CommentsClose CommentsPermalink
(b) Criteria- In making a determination under subsection (a), the Council shall consider the following criteria:CommentsClose CommentsPermalink
(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.
(42) The extent and nature of the company’s off-balance sheet exposures.CommentsClose CommentsPermalink
(53) The extent and nature of the company’s transactions and relationships with other financial companies.CommentsClose CommentsPermalink
(64) 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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(6) The extent to which assets are simply managed and not owned by the financial company and the extent to which ownership of assets under management is diffuse.CommentsClose CommentsPermalink
(7) The nature, scope, and mix of the company’s activities.CommentsClose CommentsPermalink
(8) The degree to which the company is already regulated by one or more Federal financial regulatory agencies.(9 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.CommentsClose CommentsPermalink
(9) The amount and nature of the company’s financial assets.CommentsClose CommentsPermalink
(10) The amount and nature of the company’s liabilities, including the degree of reliance on short-term funding.CommentsClose CommentsPermalink
(11) 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.CommentsClose CommentsPermalink
(d) Periodic Review and Rescission of Findings-CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(2) REVIEW AND RESCISSION- The Council shall--CommentsClose CommentsPermalink
(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; andCommentsClose CommentsPermalink
(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).CommentsClose CommentsPermalink
(e) Emergency Exception to Majority Vote of Council Requirement- If each of the Secretary of the Treasury, the Board, and the Federal Deposit Insurance Corporation determines that a financial company must be subjected to stricter prudential standards in accordance with this section immediately to prevent destabilization of the financial system or economy, the Secretary, the Board, and the Corporation may, upon approval by the President, subject such company to stricter prudential standards under this section.(f) Appeal-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 standards.CommentsClose CommentsPermalink
(2) 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.CommentsClose CommentsPermalink
(gf) Effect of Council Decision-CommentsClose CommentsPermalink
(1) APPLICATION OF THE BANK HOLDING COMPANY ACT- A financial company that is not a bank holding company as defined in the Bank Holding Company Act at the time the financial company is subjected to stricter prudential standards in accordance with this section, shall--(A) if such company conducts at the time such company is subjected to stricter prudential standards in accordance with this section only activities that are determined to be financial in nature or incidental thereto under section 4(k) of the Bank Holding FEDERAL LAWS-CommentsClose CommentsPermalink
(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, be) 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), (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 for purposes(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).CommentsClose CommentsPermalink
(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).CommentsClose CommentsPermalink
(2) APPLICATION OF ACTIVITY RESTRICTIONS AND SECTION 6 HOLDING COMPANY REQUIREMENTS-CommentsClose CommentsPermalink
(A) IN GENERAL- Except as provided in subparagraphs (B) and (C)--CommentsClose CommentsPermalink
(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; andCommentsClose CommentsPermalink
(ii) such section 6 holding company shall be the financial holding company subject to stricter standards for purposes of this title.CommentsClose CommentsPermalink
(B) EXCEPTIONS FROM SECTION 6 HOLDING COMPANY REQUIREMENTS-CommentsClose CommentsPermalink
(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)--CommentsClose CommentsPermalink
(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, the Federal Deposit Insurance Act, and all other Federal laws and regulations governing bank holding companies and financial holding companies and be thein accordance with that provision; andCommentsClose CommentsPermalink
(II) the Board, at the request of a financial holding company subject to stricter standards for purposes of this subtitle; or(B) if such company conducts at the time that such company is subjected to stricter prudential standards in accordance with this section activities other than thosethat 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, be required to establish and conduct all itsshall 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.CommentsClose CommentsPermalink
(ii) BOARD DETERMINATION NOT TO EXEMPT-CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(iii) BOARD DETERMINATION TO EXEMPT-CommentsClose CommentsPermalink
(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 under section 4(k) of the Bank Holding Company Act of 1956 in an intermediate holding company established under section 6 of the Bank Holding Company Act of 1956, which intermediate holding company shall be treated as a bank holding company that has elected to be a financial holding company for purposes, and shall be the financial holding company subject to stricter standards for purposes of this title.CommentsClose CommentsPermalink
(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).CommentsClose CommentsPermalink
(C) ACTIVITIES CONDUCTED ABROAD- Section 4 of the Bank Holding Company Act of 1956, the Federal Deposit Insurance Act, and all other Federal laws and regulations governing bank holding companies and financial holding companies, and such section 6 holding company shall be a shall not apply to any activities that a foreign financial holding company subject to stricter standards for purposes of this title.(2) EXEMPTIVE AUTHORITY- Notwithstanding any provision of the Bank Holding Company Act of 1956, the Board may, if it determines such action is necessary to ensure appropriate stricter prudential supervision, issue such exemptions from that Act as may be necessary with regardconducts solely outside the United States if such activities are conducted solely by a company or other entity that is located outside the United States.CommentsClose CommentsPermalink
(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 that do not control an insured depository institutiondescribed 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 expense.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 company becomes a financial holding company subject to stricter standards shall reduce such ratio.CommentsClose CommentsPermalink
SEC. 1104. STRICTER PRUDENTIAL STANDARDS FOR CERTAIN FINANCIAL HOLDING COMPANIES FOR FINANCIAL STABILITY PURPOSES.
(a) Stricter 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.CommentsClose CommentsPermalink
(2) STANDARDS-CommentsClose CommentsPermalink
(A) REQUIRED STANDARDS- The heightenedstricter standards imposed by the Board under this section shall include--CommentsClose CommentsPermalink
(i) risk-based capital requirements;(ii) and leverage limits;(i, 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.CommentsClose CommentsPermalink
(ii) liquidity requirements;CommentsClose CommentsPermalink
(ivii) concentration requirements (as specified in subsection (c));CommentsClose CommentsPermalink
(iv) prompt corrective action requirements (as specified in subsection (e));CommentsClose CommentsPermalink
(vi) resolution plan requirements (as specified in subsection (f)); (vii) overall risk management requirements; and
(vi) overall risk management requirements.CommentsClose CommentsPermalink
(B) ADDITIONAL STANDARDS- The heightened standards imposed by the Board under this section also may include any other prudential standards that the Board 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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(3) APPLICATION OF REQUIRED STANDARDS- In imposing prudential standards under this subsection, the Board may differentiate among financial holding companies subject to stricter standards on an individual basis or by ection, the Board--CommentsClose CommentsPermalink
(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.(4) ; andCommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(5) APPLICATION TO FOREIGN FINANCIAL COMPANIES- The Board shall prescribe regulations regarding the application of stricter prudential standards to financial companies that are organized or incorporated in a country other than the United States, and that own or controla foreign financial parent and to a Federal or State branch, subsidiary, or operating entity that is a financial holding company subject to stricter standards, giving due regard to the principleowned or controlled by a foreign financial parent, giving due regard to principles of national treatment and equality of competitive opportunity and taking into account the extent to which such companies are subjectthe 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.CommentsClose CommentsPermalink
(6) INCLUSION OF OFF BALANCE SHEET ACTIVITIES IN COMPUTING CAPITAL REQUIREMENTS-CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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:CommentsClose CommentsPermalink
(i) Direct credit substitutes in which a bank substitutes its own credit for a third party, including standby letters of credit.CommentsClose CommentsPermalink
(ii) Irrevocable letters of credit that guarantee repayment of commercial paper or tax-exempt securities.CommentsClose CommentsPermalink
(iii) Risk participation in bankers’ acceptances.CommentsClose CommentsPermalink
(iv) Sale and repurchase agreements.CommentsClose CommentsPermalink
(v) Asset sales with recourse against the seller.CommentsClose CommentsPermalink
(vi) Interest rate swaps.CommentsClose CommentsPermalink
(vii) Credit swaps.CommentsClose CommentsPermalink
(viii) Commodity contracts.CommentsClose CommentsPermalink
(ix) Forward contracts.CommentsClose CommentsPermalink
(x) Securities contracts.CommentsClose CommentsPermalink
(xi) Such other activities or transactions as the Board may, by rule, define.CommentsClose CommentsPermalink
(b) Prudential Standards at Functionally Regulated Subsidiaries and Subsidiary Depository Institutions-CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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 such entities are 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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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 paragraph (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.CommentsClose CommentsPermalink
(c) Concentration Limits for Financial Holding Companies Subject to Stricter Standards-CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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 stock 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.CommentsClose CommentsPermalink
(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--CommentsClose CommentsPermalink
(A) all extensions of credit to the company, including loans, deposits, and lines of credit;CommentsClose CommentsPermalink
(B) all repurchase agreements and reverse repurchase agreement with the company;CommentsClose CommentsPermalink
(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;CommentsClose CommentsPermalink
(D) all guarantees, acceptances, or letters of credit (including endorsement or standby letters of credit) issued on behalf of the company;CommentsClose CommentsPermalink
(E) all purchases of or investment in securities issued by the company;CommentsClose CommentsPermalink
(F) counterparty credit exposure to the company in connection with a derivative transaction between the financial holding company subject to stricter standards and the company; andCommentsClose CommentsPermalink
(G) any other similar transactions that the Board by regulation determines to be a credit exposure for purposes of this section.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(6) EXEMPTIONS-CommentsClose CommentsPermalink
(A) IN GENERAL-CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(d) Short-term Debt Limits for Certain Financial Holding Companies-CommentsClose CommentsPermalink
(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 shallmay 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.CommentsClose CommentsPermalink
(2) BASIS OF LIMIT- TheAny 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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(5) AUTHORITY TO ISSUE EXEMPTIONS AND ADJUSTMENTS- Notwithstanding the Bank Holding Company Act of 1956 (
(e) Prompt Corrective Action for Financial Holding Companies Subject to Stricter Standards-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.CommentsClose CommentsPermalink
(2) DEFINITIONS- For purposes of this section--CommentsClose CommentsPermalink
(A) CAPITAL CATEGORIES-CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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).CommentsClose CommentsPermalink
(3) OTHER DEFINITIONS-CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(B) CAPITAL DISTRIBUTION- The term ‘capital distribution’ means--CommentsClose CommentsPermalink
(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;CommentsClose CommentsPermalink
(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; andCommentsClose CommentsPermalink
(iii) a transaction that the Board determines, by order or regulation, to be in substance a distribution of capital to the owners of the financial holding company subject to stricter standards.CommentsClose CommentsPermalink
(C) CAPITAL RESTORATION PLAN- The term ‘capital restoration plan’ means a plan submitted under paragraph (6)(B).CommentsClose CommentsPermalink
(D) COMPENSATION- The term ‘compensation’ includes any payment of money or provision of any other thing of value in consideration of employment.CommentsClose CommentsPermalink
(E) RELEVANT CAPITAL MEASURE- The term ‘relevant capital measure’ means the measures described in paragraph (4).CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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 (
(4) CAPITAL STANDARDS-CommentsClose CommentsPermalink
(A) RELEVANT CAPITAL MEASURES-CommentsClose CommentsPermalink
(i) IN GENERAL- Except as provided in clause (ii)(II), the capital standards prescribed by the Board under section 1104(a)(2) shall include--CommentsClose CommentsPermalink
(I) a leverage limit; andCommentsClose CommentsPermalink
(II) a risk-based capital requirement.CommentsClose CommentsPermalink
(ii) OTHER CAPITAL MEASURES- The Board may by regulation--CommentsClose CommentsPermalink
(I) establish any additional relevant capital measures to carry out this section; orCommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(C) CRITICAL CAPITAL-CommentsClose CommentsPermalink
(i) BOARD TO SPECIFY LEVEL-CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(ii) LEVERAGE LIMIT RANGE- The level specified under clause (i)(I) shall require tangible equity in an amount--CommentsClose CommentsPermalink
(I) not less than 2 percent of total assets; andCommentsClose CommentsPermalink
(II) except as provided in subclause (I), not more than 65 percent of the required minimum level of capital under the leverage limit.CommentsClose CommentsPermalink
(5) CAPITAL DISTRIBUTIONS RESTRICTED-CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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--CommentsClose CommentsPermalink
(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; andCommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(6) PROVISIONS APPLICABLE TO UNDERCAPITALIZED FINANCIAL HOLDING COMPANY SUBJECT TO STRICTER STANDARDS-CommentsClose CommentsPermalink
(A) MONITORING REQUIRED- The Board shall--CommentsClose CommentsPermalink
(i) closely monitor the condition of any undercapitalized financial holding company subject to stricter standards;CommentsClose CommentsPermalink
(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; andCommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(B) CAPITAL RESTORATION PLAN REQUIRED-CommentsClose CommentsPermalink
(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).CommentsClose CommentsPermalink
(ii) CONTENTS OF PLAN- The capital restoration plan shall--CommentsClose CommentsPermalink
(I) specify--CommentsClose CommentsPermalink
(aa) the steps the financial holding company subject to stricter standards will take to become well capitalized;CommentsClose CommentsPermalink
(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;CommentsClose CommentsPermalink
(cc) how the financial holding company subject to stricter standards will comply with the restrictions or requirements then in effect under this section; andCommentsClose CommentsPermalink
(dd) the types and levels of activities in which the financial holding company subject to stricter standards will engage; andCommentsClose CommentsPermalink
(II) contain such other information that the Board may require.CommentsClose CommentsPermalink
(iii) CRITERIA FOR ACCEPTING PLAN- The Board shall not accept a capital restoration plan unless it determines that the plan--CommentsClose CommentsPermalink
(I) complies with clause (ii);CommentsClose CommentsPermalink
(II) is based on realistic assumptions, and is likely to succeed in restoring the capital of the financial holding company subject to stricter standards; andCommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(iv) DEADLINES FOR SUBMISSION AND REVIEW OF PLANS- The Board shall, by regulation, establish deadlines that--CommentsClose CommentsPermalink
(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; andCommentsClose CommentsPermalink
(II) require the Board to act on capital restoration plans expeditiously, and generally not later than 60 days after the plan is submitted.CommentsClose CommentsPermalink
(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--CommentsClose CommentsPermalink
(i) the Board has accepted the capital restoration plan of the financial holding company subject to stricter standards;CommentsClose CommentsPermalink
(ii) any increase in total assets is consistent with the plan; andCommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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--CommentsClose CommentsPermalink
(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;CommentsClose CommentsPermalink
(ii) the Board determines that the specific proposed action is appropriate; orCommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.(7) 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.CommentsClose CommentsPermalink
(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-CommentsClose CommentsPermalink
(A) IN GENERAL- This paragraph shall apply with respect to any financial holding company subject to stricter standards that--CommentsClose CommentsPermalink
(i) is significantly undercapitalized; orCommentsClose CommentsPermalink
(ii) is undercapitalized and--CommentsClose CommentsPermalink
(I) fails to submit an acceptable capital restoration plan within the time allowed by the Board under paragraph (6)(B)(iv); orCommentsClose CommentsPermalink
(II) fails in any material respect to implement a capital restoration plan accepted by the Board.CommentsClose CommentsPermalink
(B) SPECIFIC ACTIONS AUTHORIZED- The Board shall carry out this paragraph by taking 1 or more of the following actions--CommentsClose CommentsPermalink
(i) REQUIRING RECAPITALIZATION- Doing one or more of the following:CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(II) Further requiring that instruments sold under subclause (I) be voting shares.CommentsClose CommentsPermalink
(III) Requiring the financial holding company subject to stricter standards to be acquired by or combine with another company.CommentsClose CommentsPermalink
(ii) RESTRICTING TRANSACTIONS WITH AFFILIATES-CommentsClose CommentsPermalink
(I) Requiring the financial holding company subject to stricter standards to comply with section 23A of the Federal Reserve Act (
(II) Further restricting the transactions of the financial holding company subject to stricter standards with affiliates and insiders.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(v) IMPROVING MANAGEMENT- Doing one or more of the following:CommentsClose CommentsPermalink
(I) NEW ELECTION OF DIRECTORS- Ordering a new election for the board of directors of the financial holding company subject to stricter standards.CommentsClose CommentsPermalink
(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 (
(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).CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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--:CommentsClose CommentsPermalink
(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).CommentsClose CommentsPermalink
(ii) The action described in subparagraph (B)(ii) (relating to restricting transactions with affiliates).CommentsClose CommentsPermalink
(D) SENIOR EXECUTIVE OFFICERS’ COMPENSATION RESTRICTED-CommentsClose CommentsPermalink
(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:CommentsClose CommentsPermalink
(I) Pay any bonus to any senior executive officer.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(8) MORE STRINGENT TREATMENT BASED ON OTHER SUPERVISORY CRITERIA-CommentsClose CommentsPermalink
(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 (
(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; orCommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(12) ADMINISTRATIVE REVIEW OF DISMISSAL ORDERS-CommentsClose CommentsPermalink
(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 dismissal.CommentsClose CommentsPermalink
(B) PROCEDURE-CommentsClose CommentsPermalink
(i) HEARING REQUIRED- The Board shall give the petitioner an opportunity to--CommentsClose CommentsPermalink
(I) submit written materials in support of the petition; andCommentsClose CommentsPermalink
(II) appear, personally or through counsel, before 1 or more members of the Board or designated employees of the Board.CommentsClose CommentsPermalink
(ii) DEADLINE FOR HEARING- The Board shall--CommentsClose CommentsPermalink
(I) schedule the hearing referred to in clause (i)(II) promptly after the petition is filed; andCommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(iii) DEADLINE FOR DECISION- Not later than 60 days after the date of the hearing, the Board shall--CommentsClose CommentsPermalink
(I) by order, grant or deny the petition;CommentsClose CommentsPermalink
(II) if the order is adverse to the petitioner, set forth the basis for the order; andCommentsClose CommentsPermalink
(III) notify the petitioner of the order.CommentsClose CommentsPermalink
(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--CommentsClose CommentsPermalink
(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; andCommentsClose CommentsPermalink
(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).CommentsClose CommentsPermalink
(13) ENFORCEMENT AUTHORITY FOR FOREIGN FINANCIAL HOLDING COMPANY SUBJECT TO STRICTER STANDARDS-CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(B) DISCRETION TO DENY HEARING- The Board may issue an order under paragraph (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.CommentsClose CommentsPermalink
(f) Reports Regarding Rapid and Orderly Resolution and Credit Exposure-CommentsClose CommentsPermalink
(1) IN GENERAL- The Board shall require each financial holding company subject to stricter standards incorporated or organized in the United States to report periodically to the Board on--CommentsClose CommentsPermalink
(A) its plan for rapid and orderly resolution in the event of severe financial distress;CommentsClose CommentsPermalink
(B) the nature and extent to which the financial holding company subject to stricter standards has credit exposure to other significant financial companies; andCommentsClose CommentsPermalink
(C) the nature and extent to which other significant financial companies have credit exposure to the financial holding company subject to stricter standards.CommentsClose CommentsPermalink
(2) NO LIMITING EFFECT- A rapid resolution plan submitted in accordance with this subsection shall not be binding on a receiver

U.S. Congress - Text of H.R.4173 as Engrossed in House Dodd-Frank Wall Street Reform and Consumer Protection Act

