S 2756 ISCommentsClose CommentsPermalink

To establish the Financial Services Systemic Risk Oversight Council, and for other purposes.CommentsClose CommentsPermalink

November 9, 2009CommentsClose CommentsPermalink

Mr. WARNER introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban AffairsCommentsClose CommentsPermalink

To establish the Financial Services Systemic Risk Oversight Council, 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 ‘Financial Services Systemic Risk Oversight Council Act of 2009’.CommentsClose CommentsPermalink

SEC. 2. FINANCIAL SERVICES SYSTEMIC RISK OVERSIGHT COUNCIL ESTABLISHED.

(a) Establishment- There is established the Financial Services Systemic Risk Oversight Council, which shall be an independent establishment, as defined in section 104 of title 5, United States Code.CommentsClose CommentsPermalink





(b) Appointment-CommentsClose CommentsPermalink





(1) IN GENERAL- The Chairman of the Council shall be appointed by the President, by and with the advice and consent of the Senate, for a term of 6 years.CommentsClose CommentsPermalink





(2) PROHIBITION- The Chairman may not hold any other office for which appointment by the President and confirmation by the Senate are required, during service as the Chairman.CommentsClose CommentsPermalink





(3) PROHIBITION ON POLITICAL CAMPAIGNING- The Chairman may not participate in Federal election campaign activities.CommentsClose CommentsPermalink





(c) Members-CommentsClose CommentsPermalink





(1) IN GENERAL- The members of the Council shall be--CommentsClose CommentsPermalink





(A) the Chairman;CommentsClose CommentsPermalink





(B) the Secretary of the Treasury;CommentsClose CommentsPermalink





(C) the Chairman of the Board of Governors of the Federal Reserve System;CommentsClose CommentsPermalink





(D) the Comptroller of the Currency, or any successor thereto;CommentsClose CommentsPermalink





(E) the Director of the Office of Thrift Supervision, or any successor thereto;CommentsClose CommentsPermalink





(F) 1 individual, designated by the President, having expertise and experience in the protection of consumers of financial products, subject to paragraph (2)(B);CommentsClose CommentsPermalink





(G) the Chairman of the Securities and Exchange Commission;CommentsClose CommentsPermalink





(H) the Chairman of the Commodity Futures Trading Commission;CommentsClose CommentsPermalink





(I) the Chairman of the Federal Deposit Insurance Corporation; andCommentsClose CommentsPermalink





(J) 1 individual designated by the President.CommentsClose CommentsPermalink





(2) TERMS OF DESIGNATED MEMBERS-CommentsClose CommentsPermalink





(A) LENGTH OF TERMS- Each member designated by the President under subparagraph (F) or (J) of paragraph (1) shall serve for a term of 6 years, except that--CommentsClose CommentsPermalink





(i) the first individual designated under paragraph (1)(F) shall serve for a term of 5 years; andCommentsClose CommentsPermalink





(ii) the first individual designated under paragraph (1)(J) shall serve for a term of 3 years.CommentsClose CommentsPermalink





(B) SUCCESSIVE TERMS- No member designated under subparagraph (A), (F), or (J) of paragraph (1) may serve for more than 2 consecutive terms.CommentsClose CommentsPermalink





(C) REMOVAL- No member designated under subparagraph (F) or (J) of paragraph (1) may be removed, except for cause.CommentsClose CommentsPermalink





(3) SUCCESSION- If Congress establishes an agency in the executive branch that acts as a consumer financial protection agency--CommentsClose CommentsPermalink





(A) the director of such office shall be a member of the Council;CommentsClose CommentsPermalink





(B) the individual designated by the President under paragraph (1)(F) shall not be a member of the Council; andCommentsClose CommentsPermalink





(C) the limitations under paragraph (2) shall not apply to the director of such office.CommentsClose CommentsPermalink





(d) Technical and Professional Advisory Committees-CommentsClose CommentsPermalink





(1) IN GENERAL- The Council may establish an advisory, technical, or professional committees to assist the Council in carrying out the duties of the Council under this Act.CommentsClose CommentsPermalink





(2) MEMBERS- A committee established under paragraph (1) may include a member of the Council.CommentsClose CommentsPermalink





(e) Meetings- The Council shall meet--CommentsClose CommentsPermalink





(1) not less frequently than once each quarter;CommentsClose CommentsPermalink





(2) at such time as the Chairman determines is necessary; andCommentsClose CommentsPermalink





(3) upon the request of any member of the Council.CommentsClose CommentsPermalink





(f) Agenda- The Chairman shall prepare an agenda for each meeting that shall include any item requested by a member of the Council.CommentsClose CommentsPermalink

SEC. 3. DUTIES OF THE COUNCIL AND THE CHAIRMAN.

(a) Duties of the Council- The Council shall--CommentsClose CommentsPermalink





(1) be the systemic risk regulator for the financial system of the United States;CommentsClose CommentsPermalink





(2) advise the President on issues relating to systemic risk mitigation;CommentsClose CommentsPermalink





(3) monitor the financial markets and financial companies to identify and address potential systemic risk;CommentsClose CommentsPermalink





(4) evaluate the ability of the financial markets to function appropriately throughout the failure of United States financial companies and foreign financial companies in a way that minimizes systemic risk;CommentsClose CommentsPermalink





(5) ensure that each financial institution is adequately supervised and regulated for systemic risk purposes;CommentsClose CommentsPermalink





(6) establish criteria specifying the need for the assignment of a primary prudential regulator to a financial institution which may pose a systemic risk which are not already subject to Federal prudential regulation; andCommentsClose CommentsPermalink





(7) promote the integrity, efficiency, orderliness, and stability of the financial markets, by--CommentsClose CommentsPermalink





(A) making recommendations to the Federal financial regulators for the mitigation of systemic risk; andCommentsClose CommentsPermalink





(B) establishing minimum, mandatory prudential standards for the mitigation of systemic risk.CommentsClose CommentsPermalink





(b) Duties of the Chairman- The Chairman shall--CommentsClose CommentsPermalink





(1) coordinate areas of overlapping or joint jurisdiction among the Federal financial regulators, by identifying regulations of the Federal financial regulators that should be amended--CommentsClose CommentsPermalink





(A) to ensure that financial markets and financial companies are--CommentsClose CommentsPermalink





(i) sufficiently regulated by the Federal financial regulators to mitigate systemic risk; andCommentsClose CommentsPermalink





(ii) subject to consistent regulations in the case of overlapping jurisdiction;CommentsClose CommentsPermalink





(B) to ensure that comparable financial products, activities, and institutions receive comparable regulation and supervision; andCommentsClose CommentsPermalink





(C) to improve the exchange of information by the Federal financial regulators;CommentsClose CommentsPermalink





(2) review the rules, regulations, and regulatory actions of each Federal financial regulator, as such rules, regulations, and actions relate to the mitigation of systemic risk, and provide comments to each Federal financial regulator relating to such review;CommentsClose CommentsPermalink





(3) identify any deficiencies in the authority of a Federal financial regulator that would prevent the Federal financial regulator from issuing regulations to mitigate systemic risk;CommentsClose CommentsPermalink





(4) recommend to the Council any revision to the rules or regulations of a Federal financial regulator necessary to monitor or prevent systemic risk;CommentsClose CommentsPermalink





(5) ensure that the Council--CommentsClose CommentsPermalink





(A) collects and analyzes sufficiently comprehensive data relating to financial companies and financial markets, wherever possible from existing governmental agencies and sources, to identify systemic risks; andCommentsClose CommentsPermalink





(B) shares such information with the members of the Council;CommentsClose CommentsPermalink





(6) propose minimum prudential standards and risk management standards for consideration by the Council; andCommentsClose CommentsPermalink





(7) provide testimony before Congress that reflects his or her own views of systemic risk and its mitigation through financial regulation and market structures.CommentsClose CommentsPermalink

SEC. 4. PRUDENTIAL REGULATION OF NONBANK FINANCIAL COMPANIES.

(a) Assignment of a Primary Prudential Regulator for Financial Companies-CommentsClose CommentsPermalink





(1) DESIGNATION-CommentsClose CommentsPermalink





(A) IN GENERAL- Upon a majority vote of the members of the Council, the Council may, by rule or order, assign a primary prudential regulator to any United States financial company or foreign financial company for which the Council determines a primary prudential regulator is necessary to mitigate systemic risk related to the financial company.CommentsClose CommentsPermalink





(B) CRITERIA FOR ASSIGNMENT OF A PRIMARY PRUDENTIAL REGULATOR-CommentsClose CommentsPermalink





(i) IN GENERAL- In making an assignment under subparagraph (A), the Council shall consider--CommentsClose CommentsPermalink





(I) the amount and nature of the financial assets of the United States financial company or the foreign financial company;CommentsClose CommentsPermalink





(II) the amount and type of the liabilities of the United States financial company or the foreign financial company, including the degree of reliance by the United States financial company or the foreign financial company on short-term funding;CommentsClose CommentsPermalink





(III) the extent of the activities and risk of the United States financial company or the foreign financial company that are held off-balance sheet;CommentsClose CommentsPermalink





(IV) the extent of the transactions and relationships of the United States financial company or the foreign financial company with other major financial companies;CommentsClose CommentsPermalink





(V) the importance of the United States financial company or the foreign financial company as--CommentsClose CommentsPermalink

(aa) a source of credit for households, businesses, and State and local governments; andCommentsClose CommentsPermalink

(bb) a source of liquidity for the financial system;CommentsClose CommentsPermalink

(VI) any recommendation of a member of the Council relating to the United States financial company or the foreign financial company; andCommentsClose CommentsPermalink





(VII) any other factor that the Council determines is appropriate.CommentsClose CommentsPermalink





(ii) SPECIFIC CRITERIA FOR FOREIGN FINANCIAL COMPANIES- In making an assignment under subparagraph (A) with respect to a foreign financial company, the Council shall consider--CommentsClose CommentsPermalink





(I) only the assets, liabilities, and activities of the foreign financial company that are held or conducted in the United States; andCommentsClose CommentsPermalink





(II) the principles of national treatment and equality of competitive opportunity.CommentsClose CommentsPermalink





(C) PROHIBITION RELATING TO FOREIGN FINANCIAL COMPANIES- The Council may not assign a primary prudential regulator for a foreign financial company if the foreign financial company does not have substantial assets , liabilities, counterparty relationships or operations in the United States.CommentsClose CommentsPermalink





(2) EVALUATION AND RECISSION OF ASSIGNMENT-CommentsClose CommentsPermalink





(A) EVALUATION- Not less frequently than annually, the Council shall evaluate each assignment made under paragraph (1).CommentsClose CommentsPermalink





(B) TERMINATION- Subject to paragraph (3), if the Council determines that a United States financial company or a foreign financial company no longer meets the criteria for assignment under paragraph (1), the Council shall, by order, terminate the assignment under paragraph (1).CommentsClose CommentsPermalink





(3) NOTICE AND HEARING-CommentsClose CommentsPermalink





(A) NOTICE- The Council shall provide to a United States financial company or a foreign financial company notice of any assignment that the Council proposes to make under paragraph (1) or (2)(B) in relation to the United States financial company or foreign financial company.CommentsClose CommentsPermalink





(B) REQUEST FOR HEARING- Not later than 30 days after the date of receipt of the notice under subparagraph (A), a United States financial company or foreign financial company may make a written request for a written or oral hearing by the Council to contest the proposed assignment under paragraph (1) or (2)(B).CommentsClose CommentsPermalink





(C) TIME AND PLACE OF HEARING- Upon receipt of a timely request under subparagraph (B), the Council shall fix a date that is not more than 30 days after receipt of the request and place at which a United States financial company or foreign financial company may, in person or through counsel--CommentsClose CommentsPermalink





(i) submit written materials in relation to the proposed assignment under paragraph (1) or (2)(B); orCommentsClose CommentsPermalink





(ii) at the discretion of the Council, submit oral testimony and oral argument in relation to the proposed assignment under paragraph (1) or (2)(B).CommentsClose CommentsPermalink





(D) NOTICE OF DETERMINATION-CommentsClose CommentsPermalink





(i) HEARING- Not later than 60 days after the date of a hearing under subparagraph (C), and upon a majority vote of the members of the Council, the Council shall transmit to the United States financial company or foreign financial company--CommentsClose CommentsPermalink





(I) notice of the determination of the Council; andCommentsClose CommentsPermalink





(II) a statement of the basis for the determination of the Council.CommentsClose CommentsPermalink





(ii) NO HEARING- If a United States financial company or a foreign financial company does not make a timely request under clause (ii), the Council shall notify the United States financial company or the foreign financial company, in writing, of any assignment under paragraph (1) or (2)(B), not later than 40 days after the date of receipt of the notice under subparagraph (A).CommentsClose CommentsPermalink





(E) EMERGENCY WAIVER OR MODIFICATION-CommentsClose CommentsPermalink





(i) IN GENERAL- The Council may waive or modify the requirements of this paragraph with respect to a United States financial company or a foreign financial company if the Council determines, by an affirmative vote of not fewer than 5 members (or, if there are fewer than 5 members then serving, by a unanimous vote of all members then serving) that such waiver or modification is necessary or appropriate to prevent or mitigate threats posed by the United States financial company or foreign financial company to the financial stability of the United States.CommentsClose CommentsPermalink





(ii) NOTICE- The Council shall provide notice to a United States financial company or a foreign financial company of a waiver or modification under clause (i) as soon as is practicable, and in no case later than 24 hours after the waiver or modification is made.CommentsClose CommentsPermalink





(iii) REQUEST FOR HEARING- Not later than 10 days after the date of receipt of notice under clause (ii), the United States financial company or the foreign financial company may make a written request for a written or oral hearing by the Council to contest the waiver or modification.CommentsClose CommentsPermalink





(iv) TIME AND PLACE OF HEARING- Upon receipt of a timely request under clause (iii), the Council shall fix a date that is not more than 30 days after the date of receipt of the request and place at which a United States financial company or foreign financial company may, in person or through counsel--CommentsClose CommentsPermalink





(I) submit written materials in relation to the waiver or modification under clause (i); orCommentsClose CommentsPermalink





(II) at the discretion of the Council, submit oral testimony and oral argument in relation to the waiver or modification under clause (i).CommentsClose CommentsPermalink





(v) NOTICE OF DETERMINATION- Not later than 30 days after a hearing under clause (iv), and upon a majority vote of the members of the Council, the Council shall transmit to a United States financial company or a foreign financial company--CommentsClose CommentsPermalink





(I) notice of the determination of the Council in relation to the waiver or modification; andCommentsClose CommentsPermalink





(II) a statement of the basis for the determination of the Council.CommentsClose CommentsPermalink





(4) CONSULTATION REQUIRED- If a United States financial company or a foreign financial company has 1 or more subsidiaries subject to regulation by a Federal financial regulator, the Council shall consult with the Federal financial regulator before making any assignment under paragraph (1) in relation to the United States financial company or foreign financial company.CommentsClose CommentsPermalink





(b) Registration of Financial Companies Assigned a Primary Prudential Regulator-CommentsClose CommentsPermalink





(1) REGISTRATION REQUIRED- Not later than 180 days after the date an assignment is made under subsection (a)(1), a United States financial company or a foreign financial company that has been assigned a primary prudential regulator under subsection (a)(1) shall register with the Council, using such forms and providing such information as the Council may deem necessary or appropriate to carry out this Act.CommentsClose CommentsPermalink





(2) REGULATIONS- The Council, in consultation with the appropriate Federal financial regulators, shall issue regulations to carry out this subsection.CommentsClose CommentsPermalink





(c) Primary Prudential Regulator- Each primary prudential regulator shall act as the primary prudential regulator of the entire financial company, and each affiliate thereof.CommentsClose CommentsPermalink





(d) Resolution Plans for Certain Financial Companies-CommentsClose CommentsPermalink





(1) RESOLUTION PLAN REQUIRED- The Federal Deposit Insurance Corporation, in consultation with or at the direction of the Council (upon a majority vote of the members of the Council) shall require, by rule, a United States any financial company or foreign financial company that may pose a systemic risk to develop a plan for rapid and orderly resolution that--CommentsClose CommentsPermalink





(A) is designed to mitigate systemic risk; andCommentsClose CommentsPermalink





(B) does not contemplate and is not dependent upon the use of any extraordinary systemic resolution process that requires the approval of the President.CommentsClose CommentsPermalink





(2) REVISION OF PLANS-CommentsClose CommentsPermalink





(A) REVISION OF PLANS- The Federal Deposit Insurance Corporation may require a financial company to revise a plan developed under paragraph (1).CommentsClose CommentsPermalink





(B) PLAN NOT ESTABLISHED-CommentsClose CommentsPermalink





(i) IN GENERAL- If a plan cannot be established under this paragraph, the Federal Deposit Insurance Corporation may request any Federal financial regulator with jurisdiction over the financial company to take such steps as are necessary for an acceptable plan to be approved.CommentsClose CommentsPermalink





(ii) DISAGREEMENT BETWEEN FEDERAL DEPOSIT INSURANCE CORPORATION AND FEDERAL FINANCIAL REGULATOR- If a Federal financial regulator fails to take the steps requested by the Federal Deposit Insurance Corporation under clause (i)--CommentsClose CommentsPermalink





(I) the Federal Deposit Insurance Corporation may submit a plan for the financial company to the Council; andCommentsClose CommentsPermalink





(II) the Council may, upon a majority vote of the members of the Council, require the financial company to adopt--CommentsClose CommentsPermalink

(aa) the plan described in subclause (I); orCommentsClose CommentsPermalink

(bb) any other plan selected by the Council.CommentsClose CommentsPermalink

(3) REGULATIONS- The Federal Deposit Insurance Corporation shall issue such regulations as are necessary to carry out this subsection.CommentsClose CommentsPermalink

SEC. 5. BACKUP REGULATORY AUTHORITY OF THE COUNCIL.

(a) Purposes- The purposes of this section are to ensure that--CommentsClose CommentsPermalink





(1) all regulations of the Federal financial regulators that relate to matters over which the Federal financial regulators have overlapping or joint jurisdiction are consistent;CommentsClose CommentsPermalink





(2) comparable financial products, activities, and companies receive comparable regulation and supervision; andCommentsClose CommentsPermalink





(3) regulations issued by the Federal financial regulators are sufficient to prevent and mitigate systemic risk.CommentsClose CommentsPermalink





(b) Coordination of Existing Regulations of Federal Financial Regulators-CommentsClose CommentsPermalink





(1) JOINT RULEMAKING- The Chairman may request that a Federal financial regulator participate in a joint rulemaking with another Federal financial regulator to improve coordination among Federal financial regulators.CommentsClose CommentsPermalink





(2) COORDINATION BY COUNCIL- If a Federal financial regulator fails to participate in a joint rulemaking under subparagraph (B), upon a majority vote of the members of the Council, the Council may issue regulations for the purpose of improving coordination among Federal financial regulators.CommentsClose CommentsPermalink





(c) Minimum Prudential Standards and Risk Management Standards-CommentsClose CommentsPermalink





(1) ESTABLISHMENT OF STANDARDS- In order to mitigate risks to the United States financial system and to address systemic risk, upon a majority vote of the members of the Council, the Council shall--CommentsClose CommentsPermalink





(A) establish minimum prudential standards for United States financial companies and foreign financial companies, including--CommentsClose CommentsPermalink





(i) capital requirements;CommentsClose CommentsPermalink





(ii) leverage limits;CommentsClose CommentsPermalink





(iii) liquidity requirements;CommentsClose CommentsPermalink





(iv) underwriting standards;CommentsClose CommentsPermalink





(v) counterparty risk limits;CommentsClose CommentsPermalink





(vi) restrictions on activities;CommentsClose CommentsPermalink





(vii) margin requirements;CommentsClose CommentsPermalink





(viii) compensation standards; andCommentsClose CommentsPermalink





(ix) any other requirements, standards, or limits it deems necessary to mitigate systemic risk; andCommentsClose CommentsPermalink





(B) prescribe minimum risk management standards for United States financial companies and foreign financial companies to address issues, including--CommentsClose CommentsPermalink





(i) the risk management policies and procedures of United States financial companies or foreign financial companies;CommentsClose CommentsPermalink





(ii) the ability of United States financial companies or foreign financial companies to complete timely clearing and settlement of financial transactions; andCommentsClose CommentsPermalink





(iii) any other issue that the Council determines that it is necessary to address in order to--CommentsClose CommentsPermalink





(I) promote robust risk management by United States financial companies or foreign financial companies;CommentsClose CommentsPermalink





(II) promote safety and soundness of United States financial companies or foreign financial companies;CommentsClose CommentsPermalink





(III) reduce systemic risk; andCommentsClose CommentsPermalink





(IV) support the stability of the United States financial system.CommentsClose CommentsPermalink





(2) RULE OF CONSTRUCTION RELATING TO CONFLICTING STANDARDS- A standard established by the Council under this subsection shall be construed as a minimum standard that may be exceeded by a standard established by the primary prudential regulator of a United States financial company, a foreign financial company, or financial market utility.CommentsClose CommentsPermalink





(d) Insufficient Regulations or Failure To Act- The Chairman may issue findings relating to any regulation of a Federal financial regulator that the Chairman determines is not--CommentsClose CommentsPermalink





(1) sufficient to prevent or mitigate the effects of systemic risk; orCommentsClose CommentsPermalink





(2) consistent with regulations issued by the Council.CommentsClose CommentsPermalink





(e) Conflict Between Regulations of the Council and Regulations of a Federal Financial Regulator- If the Council determines that the provisions of a regulation of the Council and a regulation of a Federal financial regulator are inconsistent, the provisions of the regulation of the Council shall apply.CommentsClose CommentsPermalink

SEC. 6. ENFORCEMENT OF REGULATIONS AND ORDERS OF COUNCIL.

(a) Enforcement by Appropriate Federal Financial Agencies- Subject to subsection (b), the appropriate Federal financial regulator shall enforce the regulations and orders of the Council.CommentsClose CommentsPermalink





(b) Backup Authority-CommentsClose CommentsPermalink





(1) IN GENERAL- If the Council determines that it is necessary to prevent or mitigate systemic risk, the Council may enforce the regulations and orders of the Council with respect to--CommentsClose CommentsPermalink





(A) a United States financial company;CommentsClose CommentsPermalink





(B) a foreign financial company operating in the United States; orCommentsClose CommentsPermalink





(C) a financial market utility.CommentsClose CommentsPermalink





(2) MANNER OF ENFORCEMENT- In carrying out this subsection, the Council shall have the powers and duties of the appropriate Federal banking agencies under section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818), as if--CommentsClose CommentsPermalink





(A) the United States financial company, foreign financial company, or financial market utility were an insured depository institution, as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); andCommentsClose CommentsPermalink





(B) the Council were the appropriate Federal banking agency, as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).CommentsClose CommentsPermalink





(3) REGULATIONS- The Council shall, by regulation, establish the conditions under which the Council will exercise enforcement authority under this subsection.CommentsClose CommentsPermalink

SEC. 7. RESOLUTION OF FINANCIAL COMPANIES PRESENTING SYSTEMIC RISK.

(a) Receivership-CommentsClose CommentsPermalink





(1) IN GENERAL- The Council may recommend to the President that systemic resolution procedures be used to effect the orderly failure of a financial company, if a majority of the members of the Council finds that--CommentsClose CommentsPermalink





(A) a United States financial company or Foreign financial company operating in the United States is in default or in danger of default; andCommentsClose CommentsPermalink





(B) the financial company could pose a systemic risk to the United States.CommentsClose CommentsPermalink





(2) DEFAULT OR DANGER OF DEFAULT- For purposes of this paragraph, a United States financial company or foreign financial company is in default or in danger of default if--CommentsClose CommentsPermalink





(A) an action under the provisions of title 11, United States Code, has been, or is reasonably likely to be commenced with respect to the financial company;CommentsClose CommentsPermalink





(B) the financial company is critically undercapitalized, as such term is defined by the appropriate regulator;CommentsClose CommentsPermalink





(C) the financial company has incurred, or is likely to incur, unavoidable losses that will deplete all or substantially all of the capital of the financial company;CommentsClose CommentsPermalink





(D) the assets of the financial company are, or are likely to be, less than the obligations of the financial company to creditors and others; orCommentsClose CommentsPermalink





(E) the financial company is, or is likely to be, unable to pay the obligations of the financial company (other than any obligation that is the subject of a bona fide dispute) in the normal course of business.CommentsClose CommentsPermalink





(3) SYSTEMIC RISK- In determining whether a financial company poses a systemic risk for purposes of this subsection, the Council shall take into account--CommentsClose CommentsPermalink





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





(B) the amount and type of the liabilities of the financial company, including the degree of reliance by the financial company on short-term funding;CommentsClose CommentsPermalink





(C) the extent of the off-balance sheet exposures of the financial company;CommentsClose CommentsPermalink





(D) the extent of the transactions and relationships of the financial company with other major financial companies;CommentsClose CommentsPermalink





(E) the importance of the financial company as a source of--CommentsClose CommentsPermalink





(i) credit for individuals, businesses, and State and local governments; andCommentsClose CommentsPermalink





(ii) liquidity for the financial system; andCommentsClose CommentsPermalink





(F) any other factor that the Council determines is appropriate.CommentsClose CommentsPermalink





(b) Report to Congress and the President- Upon making any recommendation to the President that systemic resolution procedures be used to effect the orderly failure of a financial company, the Council shall make a report to the President and to Congress explaining--CommentsClose CommentsPermalink





(1) how and why financial regulation failed to mitigate the systemic risk posed by the institution prior to its failure;CommentsClose CommentsPermalink





(2) why non-systemic resolution procedures were unsuitable for the financial company subject to the recommendation; andCommentsClose CommentsPermalink





(3) what steps are necessary to prevent a recurrence of the systemic risk posed by the failing institution from other sources.CommentsClose CommentsPermalink

SEC. 8. COLLECTION OF DATA AND INFORMATION BY COUNCIL.

(a) Collection of Data by Council-CommentsClose CommentsPermalink





(1) DUTY TO COLLECT DATA- The Council shall collect and analyze sufficiently comprehensive data regarding the financial sector in order to understand and mitigate systemic risks.CommentsClose CommentsPermalink





(2) POWER TO COLLECT DATA- The Council may collect data from any United States financial company or foreign financial company, whether or not the financial company is regulated by a member of the Council, to carry out this section.CommentsClose CommentsPermalink





(3) BURDEN MINIMIZATION- The Council shall make every effort to utilize data already collected by other Federal agencies and departments.CommentsClose CommentsPermalink





(b) Submission of Data and Information Required- The Federal financial regulators shall, upon request, submit to the Chairman any data or information that the Chairman determines is necessary to carry out this Act.CommentsClose CommentsPermalink





(c) Direction To Obtain Data or Information-CommentsClose CommentsPermalink





(1) IN GENERAL- The Chairman may, if the Chairman determines that such action is necessary to carry out this Act, direct a Federal financial regulator, consistent with the authorities of such regulator, to require the production of any data or information from any entity regarding any activity that is financial in nature, as determined by the Chairman.CommentsClose CommentsPermalink





(2) COORDINATION BY COUNCIL- Before directing a Federal financial regulator to require the production of data or information under paragraph (1) from an entity regulated a member of the Council, the Chairman shall coordinate with members of the Council to prevent duplicative requests for data and information.CommentsClose CommentsPermalink





(d) Submissions by Federal Financial Regulators- Any Federal financial regulator in possession of data or information relevant to preventing systemic risk shall provide such data or information to the Chairman in a timely manner.CommentsClose CommentsPermalink





(e) Requests to Insurers for Data and Information- The Chairman may request data and information from an insurer regulated by a State or the affiliate of such insurer relating to any product or activity of the insurer or affiliate that the Chairman determines is financial in nature.CommentsClose CommentsPermalink





(f) Data and Information Sharing- The Chairman, in consultation with the members of the Council--CommentsClose CommentsPermalink





(1) shall--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 of Governors of the Federal Reserve System on a real-time basis; andCommentsClose CommentsPermalink





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





(2) may 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





(g) 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 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





(1) the Council;CommentsClose CommentsPermalink





(2) any Federal financial regulator or State financial regulator, in any capacity; orCommentsClose CommentsPermalink





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





(h) Disclosure Exemption- Any information obtained by the Council under this section shall be exempt from the disclosure requirements under section 552 of title 5, United States Code.CommentsClose CommentsPermalink





(i) 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 (22 U.S.C. 3927), the Chairman, in consultation with the Council, shall regularly consult with the financial regulatory entities and other appropriate organizations of foreign governments or international organizations on matters relating to systemic risk to the international financial system.CommentsClose CommentsPermalink





(j) Subpoenas-CommentsClose CommentsPermalink





(1) AUTHORITY- The Chairman may, for the purpose of carrying out this section, require by subpoena, access to the documents of--CommentsClose CommentsPermalink





(A) any United States financial company or foreign financial company; andCommentsClose CommentsPermalink





(B) any Federal financial regulator.CommentsClose CommentsPermalink





(2) ISSUANCE AND ENFORCEMENT OF SUBPOENAS-CommentsClose CommentsPermalink





(A) ISSUANCE- Subpoenas issued under this section shall--CommentsClose CommentsPermalink





(i) bear the signature of the Chairman; andCommentsClose CommentsPermalink





(ii) be served by any person or class of persons designated by the Chairman for that purpose.CommentsClose CommentsPermalink





(B) ENFORCEMENT- In the case of contumacy or failure to obey a subpoena issued under this section, the United States district court for the District of Columbia may issue an order requiring compliance. Any failure to obey the order of the court may be punished by the court as a contempt that court.CommentsClose CommentsPermalink

SEC. 9. REPORTS OF FEDERAL FINANCIAL REGULATORS.

(a) Report Required- Each Federal financial regulator shall submit to the Council and to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives an annual report that contains--CommentsClose CommentsPermalink





(1) an explanation of how the regulations, examinations, and enforcement actions of the Federal financial regulator prevent, reduce, and mitigate the effects of systemic risk;CommentsClose CommentsPermalink





(2) an explanation of specific actions taken by the Federal financial regulator during the preceding fiscal year in response to any systemic risk under the jurisdiction of the Federal financial regulator;CommentsClose CommentsPermalink





(3) information relating to emerging sources of systemic risk--CommentsClose CommentsPermalink





(A) within the jurisdiction of the Federal financial regulator; andCommentsClose CommentsPermalink





(B) outside the jurisdiction of the Federal financial regulator; andCommentsClose CommentsPermalink





(4) recommendations, if any, for legislative or regulatory action which could prevent, reduce, or mitigate emerging systemic risk.CommentsClose CommentsPermalink





(b) Timing of Report- Each Federal financial regulator shall submit the report required under subsection (a)--CommentsClose CommentsPermalink





(1) at a time that is prior to the first appearance required under section 10(a) of each calendar year; andCommentsClose CommentsPermalink





(2) determined by the Chairman, in consultation with the members of the Council.CommentsClose CommentsPermalink

SEC. 10. APPEARANCE AT HEARINGS AND REPORT BY COUNCIL.

(a) Appearances Before Congress-CommentsClose CommentsPermalink





(1) IN GENERAL- The Chairman of the Council shall appear before Congress at semi-annual hearings regarding--CommentsClose CommentsPermalink





(A) the efforts, activities, objectives and plans of the Council with respect to--CommentsClose CommentsPermalink





(i) the conduct of financial regulation;CommentsClose CommentsPermalink





(ii) the prevention of systemic risk; andCommentsClose CommentsPermalink





(iii) the mitigation of harm from systemic risk;CommentsClose CommentsPermalink





(B) the development of financial markets; andCommentsClose CommentsPermalink





(C) the prospects for the future of financial regulation of systemic risk.CommentsClose CommentsPermalink





(2) TIMING OF APPEARANCES; COMMITTEES- The Chairman of the Council shall appear--CommentsClose CommentsPermalink





(A) before the Committee on Banking, Housing, and Urban Affairs of the Senate--CommentsClose CommentsPermalink





(i) in July of each odd-numbered calendar year;CommentsClose CommentsPermalink





(ii) in February of each even-numbered calendar year; andCommentsClose CommentsPermalink





(iii) upon request, after any appearance required under subparagraph (B); andCommentsClose CommentsPermalink





(B) before the Committee on Financial Services of the House of Representatives--CommentsClose CommentsPermalink





(i) in February of each odd-numbered calendar year;CommentsClose CommentsPermalink





(ii) in July of each even-numbered calendar year; andCommentsClose CommentsPermalink





(iii) upon request, after any appearance required under subparagraph (A).CommentsClose CommentsPermalink





(b) Report- At each appearance required under subsection (a), the Council shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a written report that contains a description of--CommentsClose CommentsPermalink





(1) the conduct of financial regulation systemic risk prevention and mitigation, including actions taken by Federal financial regulators and the Council;CommentsClose CommentsPermalink





(2) developments in the financial markets; andCommentsClose CommentsPermalink





(3) prospects for the future, taking into account past and prospective developments--CommentsClose CommentsPermalink





(A) relating to the Federal financial regulators, as such developments are described in the reports of the Federal financial regulators under section 7; andCommentsClose CommentsPermalink





(B) outside the United States.CommentsClose CommentsPermalink

SEC. 11. CIVIL PENALTIES.

(a) In General- Any person who violates this Act or fails to comply with a rule, regulation, or order of the Council issued under this Act shall be subject to a civil penalty in an amount established by the Council and published under subsection (b). Each such violation or failure shall constitute a separate civil offense.CommentsClose CommentsPermalink





(b) Publication- The Council shall annually prescribe and publish in the Federal Register a schedule of the maximum authorized civil penalty for any violation of this Act or any regulatory action of the Council under this Act.CommentsClose CommentsPermalink

SEC. 12. FUNDING OF THE COUNCIL.

(a) In General-CommentsClose CommentsPermalink





(1) DETERMINATION BY CHAIRMAN- For each fiscal year, the Chairman shall determine the amount necessary for the Council to carry out its duties under this Act.CommentsClose CommentsPermalink





(2) FUNDING- The Board of Governors of the Federal Reserve System shall transfer to the Council an amount equal to the amount described in paragraph (1).CommentsClose CommentsPermalink





(b) Regulations- The Chairman may issue such regulations as are necessary to carry out this section.CommentsClose CommentsPermalink





(c) Annual Reports on Council Operations-CommentsClose CommentsPermalink





(1) IN GENERAL- The Council shall annually submit a full report of its operations, activities, budget, receipts, and expenditures for the preceding 12-month period.CommentsClose CommentsPermalink





(2) MANNER OF SUBMISSION- Such report shall be submitted to the President of the Senate and the Speaker of the House of Representatives (who shall cause the same to be printed for the information of Congress) and the President as soon as practicable after the first day of January each year.CommentsClose CommentsPermalink





(d) Quarterly Reports to the Secretary of the Treasury-CommentsClose CommentsPermalink





(1) FINANCIAL OPERATING PLANS AND FORECASTS- Before the beginning of each fiscal quarter, the Council shall provide to the Secretary of the Treasury a copy of the financial operating plans and forecasts of the Council.CommentsClose CommentsPermalink





(2) RULE OF CONSTRUCTION- The requirement to provide plans, forecasts, and reports to the Secretary of the Treasury under this subsection may not be construed as implying any obligation on the part of the Council to obtain the consent or approval of such Secretary with respect to such plans, forecasts, and reports.CommentsClose CommentsPermalink





(e) Audit-CommentsClose CommentsPermalink





(1) AUDIT REQUIRED- The Comptroller General shall audit annually the operations and financial transactions of the Council in accordance with generally accepted government auditing standards.CommentsClose CommentsPermalink





(2) ACCESS TO BOOKS AND RECORDS- All books, records, accounts, reports, files, and property belonging to or used by the Council, or by an independent certified public accountant retained to audit the Council’s financial statements, shall be made available to the Comptroller General.CommentsClose CommentsPermalink





(3) REPORT- A report of each audit conducted under paragraph (1) shall be made by the Comptroller General to the Congress not later than six and one-half months following the close of the last year covered by such audit. The report to the Congress shall set forth the scope of the audit and shall include a statement of expenses and information as may be deemed necessary to inform Congress of the operations and condition of the Council, together with such recommendations with respect thereto as the Comptroller General may deem advisable. The report shall also show specifically any program, expenditure, or other financial transaction or undertaking observed in the course of the audit, which, in the opinion of the Comptroller General, has been carried on or made without authority of law. A copy of each report shall be furnished to the President, to the Secretary of the Treasury, and to the Council at the time submitted to the Congress.CommentsClose CommentsPermalink





(4) EMPLOYMENT AUTHORITY- For the purpose of conducting such audit the Comptroller General is authorized in his discretion to employ by contract, without regard to section 3709 of the Revised Statutes, professional services of firms and organizations of certified public accountants, with the concurrence of the Council, for temporary periods or for special purposes. The Council shall reimburse the Government Accountability Office for the cost of any such audit as billed therefor by the Comptroller General, and the Government Accountability Office shall deposit the sums so reimbursed into the Treasury as miscellaneous receipts.CommentsClose CommentsPermalink

SEC. 13. TRANSITIONAL ASSISTANCE FROM FEDERAL AGENCIES.

(a) Members of the Council- On the request of the Chairman and until such time as the Council has sufficient staff, a member of the Council shall provide to the permanent staff of the Council and any advisory, technical, or professional committee established by the Council such technical assistance, professional support, or other services as are necessary for the Council to carry out this Act.CommentsClose CommentsPermalink





(b) Other Departments and Agencies- Upon the request of the Council, a Federal department or agency may provide to the Council, and any advisory, technical, or professional committee established by the Council, such services, funds, facilities, staff, and other support services as the Federal department or agency may determine advisable.CommentsClose CommentsPermalink

SEC. 14. PERSONNEL MATTERS.

(a) Council Staff-CommentsClose CommentsPermalink





(1) IN GENERAL- The Chairman may appoint and terminate such personnel as may be necessary to enable to the Council to perform its duties. The Chairman may establish positions in the excepted service for employees of the Council.CommentsClose CommentsPermalink





(2) COMPENSATION- The Chairman may fix the compensation of Council personnel without regard to the provisions of chapter 51 and subchapter III of chapter 53 of title 5, United States Code, relating to classification of positions and General Schedule pay rates, except that the rate of pay for such personnel may not exceed the rate payable for level V of the Executive Schedule under section 5316 of such title.CommentsClose CommentsPermalink





(3) OTHER PERSONNEL AUTHORITIES- The Chairman may exercise any personnel authority of any of the Federal financial regulators for the purposes of recruiting, hiring, or retention of Council personnel.CommentsClose CommentsPermalink





(b) Detail of Government Employees- Any Federal Government employee may be detailed to the Council without reimbursement, and such detail shall be without interruption or loss of civil service status or privilege.CommentsClose CommentsPermalink





(c) Procurement of Temporary and Intermittent Services- The Chairman may procure temporary and intermittent services under section 3109(b) of title 5, United States Code, at rates for individuals that do not exceed the daily equivalent of the annual rate of basic pay prescribed for level V of the Executive Schedule under section 5316 of such title.CommentsClose CommentsPermalink

SEC. 15. APPLICABILITY OF FEDERAL ADVISORY COMMITTEE ACT.

The Federal Advisory Committee Act (5 U.S.C. App. 1 et seq.) shall not apply to the Council, or to any advisory, technical, or professional committee established by the Council.CommentsClose CommentsPermalink

SEC. 16. JUDICIAL REVIEW.

Nothing in this Act affects any otherwise available judicial review of agency action or creates any right or benefit, substantive or procedural, enforceable at law or equity by a party against the United States, its agencies or instrumentalities, its officers or employees, or any other person.CommentsClose CommentsPermalink

SEC. 17. CONFLICTING PROVISIONS TERMINATED.

Executive Order Number 12631, issued by the President on March 18, 1988, may not be enforced on or after the date of enactment of this Act.CommentsClose CommentsPermalink

SEC. 18. EXECUTIVE SCHEDULE MATTERS.

Section 5312 of title 5, United States Code, is amended by adding at the end the following new item:CommentsClose CommentsPermalink





‘Chairman of the Financial Services Systemic Risk Oversight Council.’.CommentsClose CommentsPermalink

SEC. 19. RULE OF CONSTRUCTION.

Nothing in this Act may be construed to interfere with the authority of--CommentsClose CommentsPermalink





(1) the Board of Governors of the Federal Reserve System, with respect to monetary policy;CommentsClose CommentsPermalink





(2) the Securities Exchange Commission to set or enforce standards for accounting or auditing practices or auditor independence; orCommentsClose CommentsPermalink





(3) any Federal financial regulator to establish and enforce consumer and investor protection regulations.CommentsClose CommentsPermalink

SEC. 20. TECHNICAL AND CONFORMING AMENDMENTS.

(a) Independence in Congressional Testimony and Recommendations- Section 111 of Public Law No. 93-495 (12 U.S.C. 250) is amended by inserting ‘the Financial Services Systemic Risk Oversight Council,’ after ‘the Federal Housing Finance Agency,’.CommentsClose CommentsPermalink





(b) Paperwork Reduction- Section 3502(5) of title 44, United States Code, is amended by inserting ‘the Financial Services Systemic Risk Oversight Council,’ after ‘the Securities and Exchange Commission,’.CommentsClose CommentsPermalink

SEC. 21. DEFINITIONS.

In this Act--CommentsClose CommentsPermalink





(1) the term ‘appropriate Federal financial regulator’ means--CommentsClose CommentsPermalink





(A) the Office of the Comptroller of the Currency, in the case of a national bank, or a Federal branch or agency of a foreign bank;CommentsClose CommentsPermalink





(B) the Board of Governors of the Federal Reserve System, in the case of--CommentsClose CommentsPermalink





(i) a State member bank, as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813);CommentsClose CommentsPermalink





(ii) a branch or agency of a foreign bank (other than a Federal branch, Federal agency, or insured State branch of a foreign bank);CommentsClose CommentsPermalink





(iii) a commercial lending company owned or controlled by a foreign bank;CommentsClose CommentsPermalink





(iv) an organization operating under section 25 or 25A of the Federal Reserve Act (12 U.S.C. 601 et seq.);CommentsClose CommentsPermalink





(v) a bank holding company, as defined in section 2 of the Bank Holding Company Act of 1956 (12 U.S.C. 1841);CommentsClose CommentsPermalink





(vi) an investment bank holding company, as defined in section 17(i)(5) of the Securities Exchange Act of 1934 (15 U.S.C. 78q(i)(5)); orCommentsClose CommentsPermalink





(vii) a United States financial company, a foreign financial company operating in the United States, or a financial market utility over which no other Federal or State regulatory agency has enforcement authority;CommentsClose CommentsPermalink





(C) the Federal Deposit Insurance Corporation, in the case of--CommentsClose CommentsPermalink





(i) a national nonmember bank or a State nonmember bank, as those terms are defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813), the deposits of which are insured by the Federal Deposit Insurance Corporation; orCommentsClose CommentsPermalink





(ii) an insured State branch of a foreign bank;CommentsClose CommentsPermalink





(D) the Director of the Office of Thrift Supervision, in the case of--CommentsClose CommentsPermalink





(i) a savings association, as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813), the deposits of which are insured by the Federal Deposit Insurance Corporation; orCommentsClose CommentsPermalink





(ii) a savings and loan holding company, as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813);CommentsClose CommentsPermalink





(E) the National Credit Union Administration Board, in the case of any insured credit union, as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752);CommentsClose CommentsPermalink





(F) the Securities and Exchange Commission, in the case of--CommentsClose CommentsPermalink





(i) a United States financial company or foreign financial company operating in the United States that is subject to regulation by the Commission; orCommentsClose CommentsPermalink





(ii) a financial market utility that is subject to regulation by the Commission and is not subject to regulation by any other Federal financial regulator; andCommentsClose CommentsPermalink





(G) the Commodity Futures Trading Commission, in the case of--CommentsClose CommentsPermalink





(i) a United States financial company or foreign financial company operating in the United States that is subject to regulation by the Commission; orCommentsClose CommentsPermalink





(ii) a financial market utility that is subject to regulation by the Commission and is not subject to regulation by any other Federal financial regulator;CommentsClose CommentsPermalink





(2) the term ‘Chairman’ means the Chairman of the Financial Services Systemic Risk Oversight Council appointed under section 4;CommentsClose CommentsPermalink





(3) the term ‘Council’ means the Financial Services Systemic Risk Oversight Council established under section 3;CommentsClose CommentsPermalink





(4) the terms ‘depository institution’ and ‘insured depository institution’ have the same meanings as in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813);CommentsClose CommentsPermalink





(5) the term ‘Federal financial regulator’ means--CommentsClose CommentsPermalink





(A) the Comptroller of the Currency;CommentsClose CommentsPermalink





(B) the Board of Governors of the Federal Reserve System;CommentsClose CommentsPermalink





(C) the Federal Deposit Insurance Corporation;CommentsClose CommentsPermalink





(D) the National Credit Union Administration;CommentsClose CommentsPermalink





(E) the Securities and Exchange Commission;CommentsClose CommentsPermalink





(F) the Public Company Accounting Oversight Board;CommentsClose CommentsPermalink





(G) the Federal Housing Finance Agency;CommentsClose CommentsPermalink





(H) the Federal Trade Commission;CommentsClose CommentsPermalink





(I) the Farm Credit Administration;CommentsClose CommentsPermalink





(J) the Commodity Futures Trading Commission;CommentsClose CommentsPermalink





(K) the Department of Housing and Urban Development, in carrying out the duties of the Secretary of Housing and Urban Development under the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2601 et seq.);CommentsClose CommentsPermalink





(L) the Federal Housing Administration; andCommentsClose CommentsPermalink





(M) the Department of Veterans Affairs, in the case of a guarantee by the Secretary of Veterans Affairs of an extension of credit, including a mortgage loan and a small business loan;CommentsClose CommentsPermalink





(6) the term ‘activity that is financial in nature’ means an activity--CommentsClose CommentsPermalink





(A) described in section 4(k)(4) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(k)(4)); orCommentsClose CommentsPermalink





(B) that the Board of Governors of the Federal Reserve System has determined is financial in nature under section 4(k) of the Bank Holding Company Act of 1956;CommentsClose CommentsPermalink





(7) the term ‘foreign financial company’ means a bank holding company, as those terms are defined in section 2 of the Bank Holding Company Act of 1954 (12 U.S.C. 1841), and any affiliate thereof, or any other person that--CommentsClose CommentsPermalink





(A) is incorporated or organized in a country other than the United States; andCommentsClose CommentsPermalink





(B) is, directly or indirectly (including through a branch operating in the United States), engaged in any activity that is financial in nature in the United States;CommentsClose CommentsPermalink





(8) the term ‘financial market utility’ means a corporation, company, association, firm, partnership, society, joint stock company, or other legal entity (other than a natural person) that manages or operates a multilateral system for the purpose of transferring, clearing, or settling payments, securities, or other financial transactions--CommentsClose CommentsPermalink





(A) among United States financial companies or foreign financial companies in the United States; orCommentsClose CommentsPermalink





(B) between a United States financial company, or foreign financial company in the United States, and the corporation, company, association, firm, partnership, society, joint stock company, or other legal entity;CommentsClose CommentsPermalink





(9) the term ‘financial transaction’ includes a fund transfer, a securities contract, a contract for sale of a commodity for future delivery, a forward contract, a repurchase agreement, a swap agreement, a foreign exchange contract, a financial derivatives contract, and any similar transaction that the Council determines, by rule or order, to be a financial transaction for purposes of this Act;CommentsClose CommentsPermalink





(10) the term ‘payment, clearing, or settlement activity’ means an activity carried out by a United States financial company or a foreign financial company operating in the United States to facilitate the completion of a financial transaction, including--CommentsClose CommentsPermalink





(A) the calculation and communication of unsettled obligations between counterparties;CommentsClose CommentsPermalink





(B) the netting of transactions;CommentsClose CommentsPermalink





(C) the provision and maintenance of trade, contract, or instrument information;CommentsClose CommentsPermalink





(D) the management of risks and activities associated with continuing obligations;CommentsClose CommentsPermalink





(E) the transmittal and storage of payment instructions;CommentsClose CommentsPermalink





(F) the movement of funds;CommentsClose CommentsPermalink





(G) the final settlement of obligations; andCommentsClose CommentsPermalink





(H) other similar functions, as determined by the Council;CommentsClose CommentsPermalink





(11) the term ‘primary prudential regulator’ means a Federal financial regulator designated by the Council as the primary prudential regulator of a financial company;CommentsClose CommentsPermalink





(12) the term ‘State’ means 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;CommentsClose CommentsPermalink





(13) the term ‘systemic risk’ means the risk that the disruption or failure of a United States financial company, a foreign financial company operating in the United States, or a financial market utility could have a serious adverse effect on the economic conditions in or financial stability of the United States; andCommentsClose CommentsPermalink





(14) the term ‘United States financial company’ means a bank holding company, as that term is defined in section 2 of the Bank Holding Company Act of 1954 (12 U.S.C. 1841), or any affiliate thereof, or any other person that is--CommentsClose CommentsPermalink





(A) incorporated or organized under the laws of the United States or any State; andCommentsClose CommentsPermalink





(B) in whole or in part engaged, directly or indirectly, in activities that are financial in nature.CommentsClose CommentsPermalink