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S 3217 PCSCommentsClose CommentsPermalink

To promote the financial stability of the United States by improving accountability and transparency in the financial system, to end ‘too big to fail’, to protect the American taxpayer by ending bailouts, to protect consumers from abusive financial services practices, and for other purposes.CommentsClose CommentsPermalink

April 15, 2010CommentsClose CommentsPermalink

Mr. DODD, from the Committee on Banking, Housing, and Urban Affairs, reported the following original bill; which was read twice and placed on the calendarCommentsClose CommentsPermalink

To promote the financial stability of the United States by improving accountability and transparency in the financial system, to end ‘too big to fail’, to protect the American taxpayer by ending bailouts, to protect consumers from abusive financial services practices, 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; TABLE OF CONTENTS.

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





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





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





Sec. 2. Definitions.CommentsClose CommentsPermalink





Sec. 3. Severability.CommentsClose CommentsPermalink





Sec. 4. Effective date.CommentsClose CommentsPermalink

TITLE I--FINANCIAL STABILITY

Sec. 101. Short title.CommentsClose CommentsPermalink





Sec. 102. Definitions.CommentsClose CommentsPermalink

Subtitle A--Financial Stability Oversight Council

Sec. 111. Financial Stability Oversight Council established.CommentsClose CommentsPermalink





Sec. 112. Council authority.CommentsClose CommentsPermalink





Sec. 113. Authority to require supervision and regulation of certain nonbank financial companies.CommentsClose CommentsPermalink





Sec. 114. Registration of nonbank financial companies supervised by the Board of Governors.CommentsClose CommentsPermalink





Sec. 115. Enhanced supervision and prudential standards for nonbank financial companies supervised by the Board of Governors and certain bank holding companies.CommentsClose CommentsPermalink





Sec. 116. Reports.CommentsClose CommentsPermalink





Sec. 117. Treatment of certain companies that cease to be bank holding companies.CommentsClose CommentsPermalink





Sec. 118. Council funding.CommentsClose CommentsPermalink





Sec. 119. Resolution of supervisory jurisdictional disputes among member agencies.CommentsClose CommentsPermalink





Sec. 120. Additional standards applicable to activities or practices for financial stability purposes.CommentsClose CommentsPermalink





Sec. 121. Mitigation of risks to financial stability.CommentsClose CommentsPermalink

Subtitle B--Office of Financial Research

Sec. 151. Definitions.CommentsClose CommentsPermalink





Sec. 152. Office of Financial Research established.CommentsClose CommentsPermalink





Sec. 153. Purpose and duties of the Office.CommentsClose CommentsPermalink





Sec. 154. Organizational structure; responsibilities of primary programmatic units.CommentsClose CommentsPermalink





Sec. 155. Funding.CommentsClose CommentsPermalink





Sec. 156. Transition oversight.CommentsClose CommentsPermalink

Subtitle C--Additional Board of Governors Authority for Certain Nonbank Financial Companies and Bank Holding Companies

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





Sec. 162. Enforcement.CommentsClose CommentsPermalink





Sec. 163. Acquisitions.CommentsClose CommentsPermalink





Sec. 164. Prohibition against management interlocks between certain financial companies.CommentsClose CommentsPermalink





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





Sec. 166. Early remediation requirements.CommentsClose CommentsPermalink





Sec. 167. Affiliations.CommentsClose CommentsPermalink





Sec. 168. Regulations.CommentsClose CommentsPermalink





Sec. 169. Avoiding duplication.CommentsClose CommentsPermalink





Sec. 170. Safe harbor.CommentsClose CommentsPermalink

TITLE II--ORDERLY LIQUIDATION AUTHORITY

Sec. 201. Definitions.CommentsClose CommentsPermalink





Sec. 202. Orderly Liquidation Authority Panel.CommentsClose CommentsPermalink





Sec. 203. Systemic risk determination.CommentsClose CommentsPermalink





Sec. 204. Orderly liquidation.CommentsClose CommentsPermalink





Sec. 205. Orderly liquidation of covered brokers and dealers.CommentsClose CommentsPermalink





Sec. 206. Mandatory terms and conditions for all orderly liquidation actions.CommentsClose CommentsPermalink





Sec. 207. Directors not liable for acquiescing in appointment of receiver.CommentsClose CommentsPermalink





Sec. 208. Dismissal and exclusion of other actions.CommentsClose CommentsPermalink





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





Sec. 210. Powers and duties of the corporation.CommentsClose CommentsPermalink





Sec. 211. Miscellaneous provisions.CommentsClose CommentsPermalink

TITLE III--TRANSFER OF POWERS TO THE COMPTROLLER OF THE CURRENCY, THE CORPORATION, AND THE BOARD OF GOVERNORS

Sec. 300. Short title.CommentsClose CommentsPermalink





Sec. 301. Purposes.CommentsClose CommentsPermalink





Sec. 302. Definition.CommentsClose CommentsPermalink

Subtitle A--Transfer of Powers and Duties

Sec. 311. Transfer date.CommentsClose CommentsPermalink





Sec. 312. Powers and duties transferred.CommentsClose CommentsPermalink





Sec. 313. Abolishment.CommentsClose CommentsPermalink





Sec. 314. Amendments to the Revised Statutes.CommentsClose CommentsPermalink





Sec. 315. Federal information policy.CommentsClose CommentsPermalink





Sec. 316. Savings provisions.CommentsClose CommentsPermalink





Sec. 317. References in Federal law to Federal banking agencies.CommentsClose CommentsPermalink





Sec. 318. Funding.CommentsClose CommentsPermalink





Sec. 319. Contracting and leasing authority.CommentsClose CommentsPermalink

Subtitle B--Transitional Provisions

Sec. 321. Interim use of funds, personnel, and property.CommentsClose CommentsPermalink





Sec. 322. Transfer of employees.CommentsClose CommentsPermalink





Sec. 323. Property transferred.CommentsClose CommentsPermalink





Sec. 324. Funds transferred.CommentsClose CommentsPermalink





Sec. 325. Disposition of affairs.CommentsClose CommentsPermalink





Sec. 326. Continuation of services.CommentsClose CommentsPermalink

Subtitle C--Federal Deposit Insurance Corporation

Sec. 331. Deposit insurance reforms.CommentsClose CommentsPermalink





Sec. 332. Management of the Federal Deposit Insurance Corporation.CommentsClose CommentsPermalink

Subtitle D--Termination of Federal Thrift Charter

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





Sec. 342. Branching.CommentsClose CommentsPermalink

TITLE IV--REGULATION OF ADVISERS TO HEDGE FUNDS AND OTHERS

Sec. 401. Short title.CommentsClose CommentsPermalink





Sec. 402. Definitions.CommentsClose CommentsPermalink





Sec. 403. Elimination of private adviser exemption; limited exemption for foreign private advisers; limited intrastate exemption.CommentsClose CommentsPermalink





Sec. 404. Collection of systemic risk data; reports; examinations; disclosures.CommentsClose CommentsPermalink





Sec. 405. Disclosure provision eliminated.CommentsClose CommentsPermalink





Sec. 406. Clarification of rulemaking authority.CommentsClose CommentsPermalink





Sec. 407. Exemption of venture capital fund advisers.CommentsClose CommentsPermalink





Sec. 408. Exemption of and record keeping by private equity fund advisers.CommentsClose CommentsPermalink





Sec. 409. Family offices.CommentsClose CommentsPermalink





Sec. 410. State and Federal responsibilities; asset threshold for Federal registration of investment advisers.CommentsClose CommentsPermalink





Sec. 411. Custody of client assets.CommentsClose CommentsPermalink





Sec. 412. Adjusting the accredited investor standard for inflation.CommentsClose CommentsPermalink





Sec. 413. GAO study and report on accredited investors.CommentsClose CommentsPermalink





Sec. 414. GAO study on self-regulatory organization for private funds.CommentsClose CommentsPermalink





Sec. 415. Commission study and report on short selling.CommentsClose CommentsPermalink





Sec. 416. Transition period.CommentsClose CommentsPermalink

TITLE V--INSURANCE

Subtitle A--Office of National Insurance

Sec. 501. Short title.CommentsClose CommentsPermalink





Sec. 502. Establishment of Office of National Insurance.CommentsClose CommentsPermalink

Subtitle B--State-based Insurance Reform

Sec. 511. Short title.CommentsClose CommentsPermalink





Sec. 512. Effective date.CommentsClose CommentsPermalink

PART I--Nonadmitted Insurance

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





Sec. 522. Regulation of nonadmitted insurance by insured’s home State.CommentsClose CommentsPermalink





Sec. 523. Participation in national producer database.CommentsClose CommentsPermalink





Sec. 524. Uniform standards for surplus lines eligibility.CommentsClose CommentsPermalink





Sec. 525. Streamlined application for commercial purchasers.CommentsClose CommentsPermalink





Sec. 526. GAO study of nonadmitted insurance market.CommentsClose CommentsPermalink





Sec. 527. Definitions.CommentsClose CommentsPermalink

PART II--Reinsurance

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





Sec. 532. Regulation of reinsurer solvency.CommentsClose CommentsPermalink





Sec. 533. Definitions.CommentsClose CommentsPermalink

PART III--Rule of Construction

Sec. 541. Rule of construction.CommentsClose CommentsPermalink





Sec. 542. Severability.CommentsClose CommentsPermalink

TITLE VI--IMPROVEMENTS TO REGULATION OF BANK AND SAVINGS ASSOCIATION HOLDING COMPANIES AND DEPOSITORY INSTITUTIONS

Sec. 601. Short title.CommentsClose CommentsPermalink





Sec. 602. Definition.CommentsClose CommentsPermalink





Sec. 603. Moratorium and study on treatment of credit card banks, industrial loan companies, and certain other companies under the Bank Holding Company Act of 1956.CommentsClose CommentsPermalink





Sec. 604. Reports and examinations of holding companies; regulation of functionally regulated subsidiaries.CommentsClose CommentsPermalink





Sec. 605. Assuring consistent oversight of permissible activities of depository institution subsidiaries of holding companies.CommentsClose CommentsPermalink





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





Sec. 607. Standards for interstate acquisitions.CommentsClose CommentsPermalink





Sec. 608. Enhancing existing restrictions on bank transactions with affiliates.CommentsClose CommentsPermalink





Sec. 609. Eliminating exceptions for transactions with financial subsidiaries.CommentsClose CommentsPermalink





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





Sec. 611. Application of national bank lending limits to insured State banks.CommentsClose CommentsPermalink





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





Sec. 613. De novo branching into States.CommentsClose CommentsPermalink





Sec. 614. Lending limits to insiders.CommentsClose CommentsPermalink





Sec. 615. Limitations on purchases of assets from insiders.CommentsClose CommentsPermalink





Sec. 616. Regulations regarding capital levels of holding companies.CommentsClose CommentsPermalink





Sec. 617. Elimination of elective investment bank holding company framework.CommentsClose CommentsPermalink





Sec. 618. Securities holding companies.CommentsClose CommentsPermalink





Sec. 619. Restrictions on capital market activity by banks and bank holding companies.CommentsClose CommentsPermalink





Sec. 620. Concentration limits on large financial firms.CommentsClose CommentsPermalink

TITLE VII--IMPROVEMENTS TO REGULATION OF OVER-THE-COUNTER DERIVATIVES MARKETS

Sec. 701. Short title.CommentsClose CommentsPermalink





Sec. 702. Findings and purposes.CommentsClose CommentsPermalink

Subtitle A--Regulation of Swap Markets

Sec. 711. Definitions.CommentsClose CommentsPermalink





Sec. 712. Jurisdiction.CommentsClose CommentsPermalink





Sec. 713. Clearing.CommentsClose CommentsPermalink





Sec. 714. Public reporting of aggregate swap data.CommentsClose CommentsPermalink





Sec. 715. Swap repositories.CommentsClose CommentsPermalink





Sec. 716. Reporting and recordkeeping.CommentsClose CommentsPermalink





Sec. 717. Registration and regulation of swap dealers and major swap participants.CommentsClose CommentsPermalink





Sec. 718. Segregation of assets held as collateral in swap transactions.CommentsClose CommentsPermalink





Sec. 719. Conflicts of interest.CommentsClose CommentsPermalink





Sec. 720. Alternative swap execution facilities.CommentsClose CommentsPermalink





Sec. 721. Derivatives transaction execution facilities and exempt boards of trade.CommentsClose CommentsPermalink





Sec. 722. Designated contract markets.CommentsClose CommentsPermalink





Sec. 723. Margin.CommentsClose CommentsPermalink





Sec. 724. Position limits.CommentsClose CommentsPermalink





Sec. 725. Enhanced authority over registered entities.CommentsClose CommentsPermalink





Sec. 726. Foreign boards of trade.CommentsClose CommentsPermalink





Sec. 727. Legal certainty for swaps.CommentsClose CommentsPermalink





Sec. 728. FDICIA amendments.CommentsClose CommentsPermalink





Sec. 729. Primary enforcement authority.CommentsClose CommentsPermalink





Sec. 730. Enforcement.CommentsClose CommentsPermalink





Sec. 731. Retail commodity transactions.CommentsClose CommentsPermalink





Sec. 732. Large swap trader reporting.CommentsClose CommentsPermalink





Sec. 733. Other authority.CommentsClose CommentsPermalink





Sec. 734. Antitrust.CommentsClose CommentsPermalink

Subtitle B--Regulation of Security-Based Swap Markets

Sec. 751. Definitions under the Securities Exchange Act of 1934.CommentsClose CommentsPermalink





Sec. 752. Repeal of prohibition on regulation of security-based swaps.CommentsClose CommentsPermalink





Sec. 753. Amendments to the Securities Exchange Act of 1934.CommentsClose CommentsPermalink





Sec. 754. Segregation of assets held as collateral in security-based swap transactions.CommentsClose CommentsPermalink





Sec. 755. Reporting and recordkeeping.CommentsClose CommentsPermalink





Sec. 756. State gaming and bucket shop laws.CommentsClose CommentsPermalink





Sec. 757. Amendments to the Securities Act of 1933; treatment of security-based swaps.CommentsClose CommentsPermalink





Sec. 758. Other authority.CommentsClose CommentsPermalink





Sec. 759. Jurisdiction.CommentsClose CommentsPermalink

Subtitle C--Other Provisions

Sec. 761. International harmonization.CommentsClose CommentsPermalink





Sec. 762. Interagency cooperation.CommentsClose CommentsPermalink





Sec. 763. Study and report on implementation.CommentsClose CommentsPermalink





Sec. 764. Recommendations for changes to insolvency laws.CommentsClose CommentsPermalink





Sec. 765. Effective date.CommentsClose CommentsPermalink

TITLE VIII--PAYMENT, CLEARING, AND SETTLEMENT SUPERVISION

Sec. 801. Short title.CommentsClose CommentsPermalink





Sec. 802. Findings and purposes.CommentsClose CommentsPermalink





Sec. 803. Definitions.CommentsClose CommentsPermalink





Sec. 804. Designation of systemic importance.CommentsClose CommentsPermalink





Sec. 805. Standards for systemically important financial market utilities and payment, clearing, or settlement activities.CommentsClose CommentsPermalink





Sec. 806. Operations of designated financial market utilities.CommentsClose CommentsPermalink





Sec. 807. Examination of and enforcement actions against designated financial market utilities.CommentsClose CommentsPermalink





Sec. 808. Examination of and enforcement actions against financial institutions subject to standards for designated activities.CommentsClose CommentsPermalink





Sec. 809. Requests for information, reports, or records.CommentsClose CommentsPermalink





Sec. 810. Rulemaking.CommentsClose CommentsPermalink





Sec. 811. Other authority.CommentsClose CommentsPermalink





Sec. 812. Effective date.CommentsClose CommentsPermalink

TITLE IX--INVESTOR PROTECTIONS AND IMPROVEMENTS TO THE REGULATION OF SECURITIES

Subtitle A--Increasing Investor Protection

Sec. 911. Investor Advisory Committee established.CommentsClose CommentsPermalink





Sec. 912. Clarification of authority of the Commission to engage in investor testing.CommentsClose CommentsPermalink





Sec. 913. Study and rulemaking regarding obligations of brokers, dealers, and investment advisers.CommentsClose CommentsPermalink





Sec. 914. Office of the Investor Advocate.CommentsClose CommentsPermalink





Sec. 915. Streamlining of filing procedures for self-regulatory organizations.CommentsClose CommentsPermalink





Sec. 916. Study regarding financial literacy among investors.CommentsClose CommentsPermalink





Sec. 917. Study regarding mutual fund advertising.CommentsClose CommentsPermalink





Sec. 918. Clarification of Commission authority to require investor disclosures before purchase of investment products and services.CommentsClose CommentsPermalink





Sec. 919. Study on conflicts of interest.CommentsClose CommentsPermalink





Sec. 919A. Study on improved investor access to information on investment advisers and broker-dealers.CommentsClose CommentsPermalink





Sec. 919B. Study on financial planners and the use of financial designations.CommentsClose CommentsPermalink

Subtitle B--Increasing Regulatory Enforcement and Remedies

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





Sec. 922. Whistleblower protection.CommentsClose CommentsPermalink





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





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





Sec. 925. Collateral bars.CommentsClose CommentsPermalink





Sec. 926. Authority of State regulators over Regulation D offerings.CommentsClose CommentsPermalink





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





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





Sec. 929. Unlawful margin lending.CommentsClose CommentsPermalink





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





Sec. 929B. FAIR Fund amendments.CommentsClose CommentsPermalink





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

Subtitle C--Improvements to the Regulation of Credit Rating Agencies

Sec. 931. Findings.CommentsClose CommentsPermalink





Sec. 932. Enhanced regulation, accountability, and transparency of nationally recognized statistical rating organizations.CommentsClose CommentsPermalink





Sec. 933. State of mind in private actions.CommentsClose CommentsPermalink





Sec. 934. Referring tips to law enforcement or regulatory authorities.CommentsClose CommentsPermalink





Sec. 935. Consideration of information from sources other than the issuer in rating decisions.CommentsClose CommentsPermalink





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





Sec. 937. Timing of regulations.CommentsClose CommentsPermalink





Sec. 938. Universal ratings symbols.CommentsClose CommentsPermalink





Sec. 939. Government Accountability Office study and Federal agency review of required uses of nationally recognized statistical rating organization ratings.CommentsClose CommentsPermalink





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





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





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

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

Sec. 941. Regulation of credit risk retention.CommentsClose CommentsPermalink





Sec. 942. Disclosures and reporting for asset-backed securities.CommentsClose CommentsPermalink





Sec. 943. Representations and warranties in asset-backed offerings.CommentsClose CommentsPermalink





Sec. 944. Exempted transactions under the Securities Act of 1933.CommentsClose CommentsPermalink





Sec. 945. Due diligence analysis and disclosure in asset-backed securities issues.CommentsClose CommentsPermalink

Subtitle E--Accountability and Executive Compensation

Sec. 951. Shareholder vote on executive compensation disclosures.CommentsClose CommentsPermalink





Sec. 952. Compensation committee independence.CommentsClose CommentsPermalink





Sec. 953. Executive compensation disclosures.CommentsClose CommentsPermalink





Sec. 954. Recovery of erroneously awarded compensation.CommentsClose CommentsPermalink





Sec. 955. Disclosure regarding employee and director hedging.CommentsClose CommentsPermalink





Sec. 956. Excessive compensation by holding companies of depository institutions.CommentsClose CommentsPermalink





Sec. 957. Voting by brokers.CommentsClose CommentsPermalink

Subtitle F--Improvements to the Management of the Securities and Exchange Commission

Sec. 961. Report and certification of internal supervisory controls.CommentsClose CommentsPermalink





Sec. 962. Triennial report on personnel management.CommentsClose CommentsPermalink





Sec. 963. Annual financial controls audit.CommentsClose CommentsPermalink





Sec. 964. Report on oversight of national securities associations.CommentsClose CommentsPermalink





Sec. 965. Compliance examiners.CommentsClose CommentsPermalink





Sec. 966. Suggestion program for employees of the Commission.CommentsClose CommentsPermalink

Subtitle G--Strengthening Corporate Governance

Sec. 971. Election of directors by majority vote in uncontested elections.CommentsClose CommentsPermalink





Sec. 972. Proxy access.CommentsClose CommentsPermalink





Sec. 973. Disclosures regarding chairman and CEO structures.CommentsClose CommentsPermalink

Subtitle H--Municipal Securities

Sec. 975. Regulation of municipal securities and changes to the board of the MSRB.CommentsClose CommentsPermalink





Sec. 976. Government Accountability Office study of increased disclosure to investors.CommentsClose CommentsPermalink





Sec. 977. Government Accountability Office study on the municipal securities markets.CommentsClose CommentsPermalink





Sec. 978. Study of funding for Government Accounting Standards Board.CommentsClose CommentsPermalink





Sec. 979. Commission Office of Municipal Securities.CommentsClose CommentsPermalink

Subtitle I--Public Company Accounting Oversight Board, Portfolio Margining, and Other Matters

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





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





Sec. 983. Portfolio margining.CommentsClose CommentsPermalink





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





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





Sec. 986. Conforming amendments relating to repeal of the Public Utility Holding Company Act of 1935.CommentsClose CommentsPermalink





Sec. 987. Amendment to definition of material loss and nonmaterial losses to the Deposit Insurance Fund for purposes of Inspector General reviews.CommentsClose CommentsPermalink





Sec. 988. Amendment to definition of material loss and nonmaterial losses to the National Credit Union Share Insurance Fund for purposes of Inspector General reviews.CommentsClose CommentsPermalink





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





Sec. 989A. Senior investor protections.CommentsClose CommentsPermalink





Sec. 989B. Changes in appointment of certain Inspectors General.CommentsClose CommentsPermalink

Subtitle J--Self-funding of the Securities and Exchange Commission

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

TITLE X--BUREAU OF CONSUMER FINANCIAL PROTECTION

Sec. 1001. Short title.CommentsClose CommentsPermalink





Sec. 1002. Definitions.CommentsClose CommentsPermalink

Subtitle A--Bureau of Consumer Financial Protection

Sec. 1011. Establishment of the Bureau.CommentsClose CommentsPermalink





Sec. 1012. Executive and administrative powers.CommentsClose CommentsPermalink





Sec. 1013. Administration.CommentsClose CommentsPermalink





Sec. 1014. Consumer Advisory Board.CommentsClose CommentsPermalink





Sec. 1015. Coordination.CommentsClose CommentsPermalink





Sec. 1016. Appearances before and reports to Congress.CommentsClose CommentsPermalink





Sec. 1017. Funding; penalties and fines.CommentsClose CommentsPermalink





Sec. 1018. Effective date.CommentsClose CommentsPermalink

Subtitle B--General Powers of the Bureau

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





Sec. 1022. Rulemaking authority.CommentsClose CommentsPermalink





Sec. 1023. Review of Bureau regulations.CommentsClose CommentsPermalink





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





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





Sec. 1026. Other banks, savings associations, and credit unions.CommentsClose CommentsPermalink





Sec. 1027. Limitations on authorities of the Bureau; preservation of authorities.CommentsClose CommentsPermalink





Sec. 1028. Authority to restrict mandatory pre-dispute arbitration.CommentsClose CommentsPermalink





Sec. 1029. Effective date.CommentsClose CommentsPermalink

Subtitle C--Specific Bureau Authorities

Sec. 1031. Prohibiting unfair, deceptive, or abusive acts or practices.CommentsClose CommentsPermalink





Sec. 1032. Disclosures.CommentsClose CommentsPermalink





Sec. 1033. Consumer rights to access information.CommentsClose CommentsPermalink





Sec. 1034. Response to consumer complaints and inquiries.CommentsClose CommentsPermalink





Sec. 1035. Private education loan ombudsman.CommentsClose CommentsPermalink





Sec. 1036. Prohibited acts.CommentsClose CommentsPermalink





Sec. 1037. Effective date.CommentsClose CommentsPermalink

Subtitle D--Preservation of State Law

Sec. 1041. Relation to State law.CommentsClose CommentsPermalink





Sec. 1042. Preservation of enforcement powers of States.CommentsClose CommentsPermalink





Sec. 1043. Preservation of existing contracts.CommentsClose CommentsPermalink





Sec. 1044. State law preemption standards for national banks and subsidiaries clarified.CommentsClose CommentsPermalink





Sec. 1045. Clarification of law applicable to nondepository institution subsidiaries.CommentsClose CommentsPermalink





Sec. 1046. State law preemption standards for Federal savings associations and subsidiaries clarified.CommentsClose CommentsPermalink





Sec. 1047. Visitorial standards for national banks and savings associations.CommentsClose CommentsPermalink





Sec. 1048. Effective date.CommentsClose CommentsPermalink

Subtitle E--Enforcement Powers

Sec. 1051. Definitions.CommentsClose CommentsPermalink





Sec. 1052. Investigations and administrative discovery.CommentsClose CommentsPermalink





Sec. 1053. Hearings and adjudication proceedings.CommentsClose CommentsPermalink





Sec. 1054. Litigation authority.CommentsClose CommentsPermalink





Sec. 1055. Relief available.CommentsClose CommentsPermalink





Sec. 1056. Referrals for criminal proceedings.CommentsClose CommentsPermalink





Sec. 1057. Employee protection.CommentsClose CommentsPermalink





Sec. 1058. Effective date.CommentsClose CommentsPermalink

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

Sec. 1061. Transfer of consumer financial protection functions.CommentsClose CommentsPermalink





Sec. 1062. Designated transfer date.CommentsClose CommentsPermalink





Sec. 1063. Savings provisions.CommentsClose CommentsPermalink





Sec. 1064. Transfer of certain personnel.CommentsClose CommentsPermalink





Sec. 1065. Incidental transfers.CommentsClose CommentsPermalink





Sec. 1066. Interim authority of the Secretary.CommentsClose CommentsPermalink





Sec. 1067. Transition oversight.CommentsClose CommentsPermalink

Subtitle G--Regulatory Improvements

Sec. 1071. Collection of deposit account data.CommentsClose CommentsPermalink





Sec. 1072. Small business data collection.CommentsClose CommentsPermalink





Sec. 1073. GAO study on the effectiveness and impact of various appraisal methods.CommentsClose CommentsPermalink





Sec. 1074. Prohibition on certain prepayment penalties.CommentsClose CommentsPermalink





Sec. 1075. Assistance for economically vulnerable individuals and families.CommentsClose CommentsPermalink





Sec. 1076. Remittance transfers.CommentsClose CommentsPermalink

Subtitle H--Conforming Amendments

Sec. 1081. Amendments to the Inspector General Act.CommentsClose CommentsPermalink





Sec. 1082. Amendments to the Privacy Act of 1974.CommentsClose CommentsPermalink





Sec. 1083. Amendments to the Alternative Mortgage Transaction Parity Act of 1982.CommentsClose CommentsPermalink





Sec. 1084. Amendments to the Electronic Fund Transfer Act.CommentsClose CommentsPermalink





Sec. 1085. Amendments to the Equal Credit Opportunity Act.CommentsClose CommentsPermalink





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





Sec. 1087. Amendments to the Fair Credit Billing Act.CommentsClose CommentsPermalink





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





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





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





Sec. 1091. Amendments to the Gramm-Leach-Bliley Act.CommentsClose CommentsPermalink





Sec. 1092. Amendments to the Home Mortgage Disclosure Act.CommentsClose CommentsPermalink





Sec. 1093. Amendments to the Homeowners Protection Act of 1998.CommentsClose CommentsPermalink





Sec. 1094. Amendments to the Home Ownership and Equity Protection Act of 1994.CommentsClose CommentsPermalink





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





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





Sec. 1097. Amendments to the Right to Financial Privacy Act of 1978.CommentsClose CommentsPermalink





Sec. 1098. Amendments to the Secure and Fair Enforcement for Mortgage Licensing Act of 2008.CommentsClose CommentsPermalink





Sec. 1099. Amendments to the Truth in Lending Act.CommentsClose CommentsPermalink





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





Sec. 1101. Amendments to the Telemarketing and Consumer Fraud and Abuse Prevention Act.CommentsClose CommentsPermalink





Sec. 1102. Amendments to the Paperwork Reduction Act.CommentsClose CommentsPermalink





Sec. 1103. Adjustments for inflation in the Truth in Lending Act.CommentsClose CommentsPermalink





Sec. 1104. Effective date.CommentsClose CommentsPermalink

TITLE XI--FEDERAL RESERVE SYSTEM PROVISIONS

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





Sec. 1152. Reviews of special Federal Reserve credit facilities.CommentsClose CommentsPermalink





Sec. 1153. Public access to information.CommentsClose CommentsPermalink





Sec. 1154. Liquidity event determination.CommentsClose CommentsPermalink





Sec. 1155. Emergency financial stabilization.CommentsClose CommentsPermalink





Sec. 1156. Additional related amendments.CommentsClose CommentsPermalink





Sec. 1157. Federal Reserve Act amendments on Federal reserve bank governance.CommentsClose CommentsPermalink





Sec. 1158. Amendments to the Federal Reserve Act relating to supervision and regulation policy.CommentsClose CommentsPermalink

TITLE XII--IMPROVING ACCESS TO MAINSTREAM FINANCIAL INSTITUTIONS

Sec. 1201. Short title.CommentsClose CommentsPermalink





Sec. 1202. Purpose.CommentsClose CommentsPermalink





Sec. 1203. Definitions.CommentsClose CommentsPermalink





Sec. 1204. Expanded access to mainstream financial institutions.CommentsClose CommentsPermalink





Sec. 1205. Low-cost alternatives to payday loans.CommentsClose CommentsPermalink





Sec. 1206. Grants to establish loan-loss reserve funds.CommentsClose CommentsPermalink





Sec. 1207. Procedural provisions.CommentsClose CommentsPermalink





Sec. 1208. Authorization of appropriations.CommentsClose CommentsPermalink





Sec. 1209. Regulations.CommentsClose CommentsPermalink





Sec. 1210. Evaluation and reports to Congress.CommentsClose CommentsPermalink

SEC. 2. DEFINITIONS.

As used in this Act, the following definitions shall apply, except as the context otherwise requires or as otherwise specifically provided in this Act:CommentsClose CommentsPermalink





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





(2) APPROPRIATE FEDERAL BANKING AGENCY- On and after the transfer date, the term ‘appropriate Federal banking agency’ has the same meaning as in section 3(q) of the Federal Deposit Insurance Act (12 U.S.C. 1813(q)), as amended by title III.CommentsClose CommentsPermalink





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





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





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





(6) CORPORATION- The term ‘Corporation’ means the Federal Deposit Insurance Corporation.CommentsClose CommentsPermalink





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





(8) CREDIT UNION- The term ‘credit union’ means a Federal credit union, State credit union, or State-chartered credit union, as those terms are defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752).CommentsClose CommentsPermalink





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





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





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





(10) FUNCTIONALLY REGULATED SUBSIDIARY- The term ‘functionally regulated subsidiary’ has the same meaning as in section 5(c)(5) of the Bank Holding Company Act of 1956 (12 U.S.C. 1844(c)(5)).CommentsClose CommentsPermalink





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





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





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





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





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





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





(iv) any clearing agency registered with the Commission under the Securities Exchange Act of 1934;CommentsClose CommentsPermalink





(C) the Commodity Futures Trading Commission, with respect to any futures commission merchant, any commodity trading adviser, and any commodity pool operator registered with the Commodity Futures Trading Commission under the Commodity Exchange Act, with respect to the commodities activities of such entity and activities that are incidental to such commodities activities;CommentsClose CommentsPermalink





(D) the State insurance authority of the State in which an insurance company is domiciled, with respect to the insurance activities and activities that are incidental to such insurance activities of an insurance company that is subject to supervision by the State insurance authority under State insurance law; andCommentsClose CommentsPermalink





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





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





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





(14) SECURITIES TERMS- The--CommentsClose CommentsPermalink





(A) terms ‘broker’, ‘dealer’, ‘issuer’, ‘nationally recognized statistical ratings organization’, ‘security’, and ‘securities laws’ have the same meanings as in section 3 of the Securities Exchange Act of 1934 (15 U.S.C. 78c);CommentsClose CommentsPermalink





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





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





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





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





(17) OTHER INCORPORATED DEFINITIONS-CommentsClose CommentsPermalink





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





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





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





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





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

SEC. 3. SEVERABILITY.

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

SEC. 4. EFFECTIVE DATE.

Except as otherwise specifically provided in this Act or the amendments made by this Act, this Act and such amendments shall take effect 1 day after the date of enactment of this Act.CommentsClose CommentsPermalink

TITLE I--FINANCIAL STABILITYCommentsClose CommentsPermalink

SEC. 101. SHORT TITLE.

This title may be cited as the ‘Financial Stability Act of 2010’.CommentsClose CommentsPermalink

SEC. 102. DEFINITIONS.

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





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





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





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





(4) NONBANK FINANCIAL COMPANY DEFINITIONS-CommentsClose CommentsPermalink





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





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





(ii) substantially engaged in, including through a branch in the United States, activities in the United States that are financial in nature (as defined in section 4(k) of the Bank Holding Company Act of 1956).CommentsClose CommentsPermalink





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





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





(ii) substantially engaged in activities in the United States that are financial in nature (as defined in section 4(k) of the Bank Holding Company Act of 1956).CommentsClose CommentsPermalink





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





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





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





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





(b) Definitional Criteria- The Board of Governors shall establish, by regulation, the criteria to determine whether a company is substantially engaged in activities in the United States that are financial in nature (as defined in section 4(k) of the Bank Holding Company Act of 1956) for purposes of the definitions of the terms ‘U.S. nonbank financial company’ and ‘foreign nonbank financial company’ under subsection (a)(4).CommentsClose CommentsPermalink





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

Subtitle A--Financial Stability Oversight CouncilCommentsClose CommentsPermalink

SEC. 111. FINANCIAL STABILITY OVERSIGHT COUNCIL ESTABLISHED.

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





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





(1) VOTING MEMBERS- The voting members, who shall each have 1 vote on the Council shall be--CommentsClose CommentsPermalink





(A) the Secretary of the Treasury, who shall serve as Chairperson of the Council;CommentsClose CommentsPermalink





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





(C) the Comptroller of the Currency;CommentsClose CommentsPermalink





(D) the Director of the Bureau;CommentsClose CommentsPermalink





(E) the Chairman of the Commission;CommentsClose CommentsPermalink





(F) the Chairperson of the Corporation;CommentsClose CommentsPermalink





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





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





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





(2) NONVOTING MEMBERS- The Director of the Office of Financial Research--CommentsClose CommentsPermalink





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





(B) may not be excluded from any of the proceedings, meetings, discussions, or deliberations of the Council.CommentsClose CommentsPermalink





(c) Terms; Vacancy-CommentsClose CommentsPermalink





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





(2) VACANCY- Any vacancy on the Council shall be filled in the manner in which the original appointment was made.CommentsClose CommentsPermalink





(3) ACTING OFFICIALS MAY SERVE- In the event of a vacancy in the office of the head of a member agency or department, and pending the appointment of a successor, or during the absence or disability of the head of a member agency or department, the acting head of the member agency or department shall serve as a member of the Council in the place of that agency or department head.CommentsClose CommentsPermalink





(d) Technical and Professional Advisory Committees- The Council may appoint such special advisory, technical, or professional committees as may be useful in carrying out the functions of the Council, including an advisory committee consisting of State regulators, and the members of such committees may be members of the Council, or other persons, or both.CommentsClose CommentsPermalink





(e) Meetings-CommentsClose CommentsPermalink





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





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





(f) Voting- Unless otherwise specified, the Council shall make all decisions that it is authorized or required to make by a majority vote of the members then serving.CommentsClose CommentsPermalink





(g) Nonapplicability of FACA- The Federal Advisory Committee Act (5 U.S.C. App.) shall not apply to the Council, or to any special advisory, technical, or professional committee appointed by the Council, except that, if an advisory, technical, or professional committee has one or more members who are not employees of or affiliated with the United States Government, the Council shall publish a list of the names of the members of such committee.CommentsClose CommentsPermalink





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





(i) Compensation of Members-CommentsClose CommentsPermalink





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





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





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





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

SEC. 112. COUNCIL AUTHORITY.

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





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





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





(B) to promote market discipline, by eliminating expectations on the part of shareholders, creditors, and counterparties of such companies that the Government will shield them from losses in the event of failure; andCommentsClose CommentsPermalink





(C) to respond to emerging threats to the stability of the United States financial markets.CommentsClose CommentsPermalink





(2) DUTIES- The Council shall, in accordance with this title--CommentsClose CommentsPermalink





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





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





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





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





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





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





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





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





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





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





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





(L) provide a forum for--CommentsClose CommentsPermalink





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





(ii) resolution of jurisdictional disputes among the members of the Council; andCommentsClose CommentsPermalink





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





(i) the activities of the Council;CommentsClose CommentsPermalink





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





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





(iv) recommendations--CommentsClose CommentsPermalink





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





(II) to promote market discipline; andCommentsClose CommentsPermalink





(III) to maintain investor confidence.CommentsClose CommentsPermalink





(b) Authority To Obtain Information-CommentsClose CommentsPermalink





(1) IN GENERAL- The Council may receive, and may request the submission of, any data or information from the Office of Financial Research and member agencies, as necessary--CommentsClose CommentsPermalink





(A) to monitor the financial services marketplace to identify potential risks to the financial stability of the United States; orCommentsClose CommentsPermalink





(B) to otherwise carry out any of the provisions of this title.CommentsClose CommentsPermalink





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





(3) FINANCIAL DATA COLLECTION-CommentsClose CommentsPermalink





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





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





(4) BACK-UP EXAMINATION BY THE BOARD OF GOVERNORS- If the Council is unable to determine whether the financial activities of a nonbank financial company pose a threat to the financial stability of the United States, based on information or reports obtained under paragraph (3), discussions with management, and publicly available information, the Council may request the Board of Governors, and the Board of Governors is authorized, to conduct an examination of the nonbank financial company for the sole purpose of determining whether the nonbank financial company should be supervised by the Board of Governors for purposes of this title.CommentsClose CommentsPermalink





(5) CONFIDENTIALITY-CommentsClose CommentsPermalink





(A) IN GENERAL- The Council, the Office of Financial Research, and the other member agencies shall maintain the confidentiality of any data, information, and reports submitted under this subsection and subtitle B.CommentsClose CommentsPermalink





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





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

SEC. 113. AUTHORITY TO REQUIRE SUPERVISION AND REGULATION OF CERTAIN NONBANK FINANCIAL COMPANIES.

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





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





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





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





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





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





(D) the extent and types of the off-balance-sheet exposures of the company;CommentsClose CommentsPermalink





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





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





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





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





(I) the extent to which--CommentsClose CommentsPermalink





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





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





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





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





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





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





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





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





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





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





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





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





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





(H) the extent to which--CommentsClose CommentsPermalink





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





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





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





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





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





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





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





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





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





(3) FINAL DETERMINATION- Not later than 60 days after the date of a hearing under paragraph (2), the Council shall notify the nonbank financial company of the final determination of the Council, which shall contain a statement of the basis for the decision of the Council.CommentsClose CommentsPermalink





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





(e) Emergency Exception-CommentsClose CommentsPermalink





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





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





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





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





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





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

SEC. 114. REGISTRATION OF NONBANK FINANCIAL COMPANIES SUPERVISED BY THE BOARD OF GOVERNORS.

Not later than 180 days after the date of a final Council determination under section 113 that a nonbank financial company is to be supervised by the Board of Governors, such company shall register with the Board of Governors, on forms prescribed by the Board of Governors, which shall include such information as the Board of Governors, in consultation with the Council, may deem necessary or appropriate to carry out this title.CommentsClose CommentsPermalink

SEC. 115. ENHANCED SUPERVISION AND PRUDENTIAL STANDARDS FOR NONBANK FINANCIAL COMPANIES SUPERVISED BY THE BOARD OF GOVERNORS AND CERTAIN BANK HOLDING COMPANIES.

(a) In General-CommentsClose CommentsPermalink





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





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





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





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





(b) Development of Prudential Standards-CommentsClose CommentsPermalink





(1) IN GENERAL- The recommendations of the Council under subsection (a) may include--CommentsClose CommentsPermalink





(A) risk-based capital requirements;CommentsClose CommentsPermalink





(B) leverage limits;CommentsClose CommentsPermalink





(C) liquidity requirements;CommentsClose CommentsPermalink





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





(E) concentration limits;CommentsClose CommentsPermalink





(F) a contingent capital requirement;CommentsClose CommentsPermalink





(G) enhanced public disclosures; andCommentsClose CommentsPermalink





(H) overall risk management requirements.CommentsClose CommentsPermalink





(2) PRUDENTIAL STANDARDS FOR FOREIGN FINANCIAL COMPANIES- In making recommendations concerning the standards set forth in paragraph (1) that would apply to foreign nonbank financial companies supervised by the Board of Governors or foreign-based bank holding companies, the Council shall give due regard to the principle of national treatment and competitive equity.CommentsClose CommentsPermalink





(3) CONSIDERATIONS- In making recommendations concerning prudential standards under paragraph (1), the Council shall--CommentsClose CommentsPermalink





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





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





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





(iii) nonfinancial activities and affiliations of the company; andCommentsClose CommentsPermalink





(iv) any other factors that the Council determines appropriate; andCommentsClose CommentsPermalink





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





(c) Contingent Capital-CommentsClose CommentsPermalink





(1) STUDY REQUIRED- The Council shall conduct a study of the feasibility, benefits, costs, and structure of a contingent capital requirement for nonbank financial companies supervised by the Board of Governors and bank holding companies described in subsection (a), which study shall include--CommentsClose CommentsPermalink





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





(B) an evaluation of the characteristics and amounts of convertible debt that should be required;CommentsClose CommentsPermalink





(C) an analysis of potential prudential standards that should be used to determine whether the contingent capital of a company would be converted to equity in times of financial stress;CommentsClose CommentsPermalink





(D) an evaluation of the costs to companies, the effects on the structure and operation of credit and other financial markets, and other economic effects of requiring contingent capital;CommentsClose CommentsPermalink





(E) an evaluation of the effects of such requirement on the international competitiveness of companies subject to the requirement and the prospects for international coordination in establishing such requirement; andCommentsClose CommentsPermalink





(F) recommendations for implementing regulations.CommentsClose CommentsPermalink





(2) REPORT- The Council shall submit a report to Congress regarding the study required by paragraph (1) not later than 2 years after the date of enactment of this Act.CommentsClose CommentsPermalink





(3) RECOMMENDATIONS-CommentsClose CommentsPermalink





(A) IN GENERAL- Subsequent to submitting a report to Congress under paragraph (2), the Council may make recommendations to the Board of Governors to require any nonbank financial company supervised by the Board of Governors and any bank holding company described in subsection (a) to maintain a minimum amount of long-term hybrid debt that is convertible to equity in times of financial stress.CommentsClose CommentsPermalink





(B) FACTORS TO CONSIDER- In making recommendations under this subsection, the Council shall consider--CommentsClose CommentsPermalink





(i) an appropriate transition period for implementation of a conversion under this subsection;CommentsClose CommentsPermalink





(ii) the factors described in subsection (b)(3);CommentsClose CommentsPermalink





(iii) capital requirements applicable to a nonbank financial company supervised by the Board of Governors or a bank holding company described in subsection (a), and subsidiaries thereof;CommentsClose CommentsPermalink





(iv) results of the study required by paragraph (1); andCommentsClose CommentsPermalink





(v) any other factor that the Council deems appropriate.CommentsClose CommentsPermalink





(d) Resolution Plan and Credit Exposure Reports-CommentsClose CommentsPermalink





(1) RESOLUTION PLAN- The Council may make recommendations to the Board of Governors concerning the requirement that each nonbank financial company supervised by the Board of Governors and each bank holding company described in subsection (a) report periodically to the Council, the Board of Governors, and the Corporation, the plan of such company for rapid and orderly resolution in the event of material financial distress or failure.CommentsClose CommentsPermalink





(2) CREDIT EXPOSURE REPORT- The Council may make recommendations to the Board of Governors concerning the advisability of requiring each nonbank financial company supervised by the Board of Governors and bank holding company described in subsection (a) to report periodically to the Council, the Board of Governors, and the Corporation on--CommentsClose CommentsPermalink





(A) the nature and extent to which the company has credit exposure to other significant nonbank financial companies and significant bank holding companies; andCommentsClose CommentsPermalink





(B) the nature and extent to which other such significant nonbank financial companies and significant bank holding companies have credit exposure to that company.CommentsClose CommentsPermalink





(e) Concentration Limits- In order to limit the risks that the failure of any individual company could pose to nonbank financial companies supervised by the Board of Governors or bank holding companies described in subsection (a), the Council may make recommendations to the Board of Governors to prescribe standards to limit such risks, as set forth in section 165.CommentsClose CommentsPermalink





(f) Enhanced Public Disclosures- The Council may make recommendations to the Board of Governors to require periodic public disclosures by bank holding companies described in subsection (a) and by nonbank financial companies supervised by the Board of Governors, in order to support market evaluation of the risk profile, capital adequacy, and risk management capabilities thereof.CommentsClose CommentsPermalink

SEC. 116. REPORTS.

(a) In General- Subject to subsection (b), the Council, acting through the Office of Financial Research, may require a bank holding company with total consolidated assets of $50,000,000,000 or greater or a nonbank financial company supervised by the Board of Governors, and any subsidiary thereof, to submit certified reports to keep the Council informed as to--CommentsClose CommentsPermalink





(1) the financial condition of the company;CommentsClose CommentsPermalink





(2) systems for monitoring and controlling financial, operating, and other risks;CommentsClose CommentsPermalink





(3) transactions with any subsidiary that is a depository institution; andCommentsClose CommentsPermalink





(4) the extent to which the activities and operations of the company and any subsidiary thereof, could, under adverse circumstances, have the potential to disrupt financial markets or affect the overall financial stability of the United States.CommentsClose CommentsPermalink





(b) Use of Existing Reports-CommentsClose CommentsPermalink





(1) IN GENERAL- For purposes of compliance with subsection (a), the Council, acting through the Office of Financial Research, shall, to the fullest extent possible, use--CommentsClose CommentsPermalink





(A) reports that a bank holding company, nonbank financial company supervised by the Board of Governors, or any functionally regulated subsidiary of such company has been required to provide to other Federal or State regulatory agencies;CommentsClose CommentsPermalink





(B) information that is otherwise required to be reported publicly; andCommentsClose CommentsPermalink





(C) externally audited financial statements.CommentsClose CommentsPermalink





(2) AVAILABILITY- Each bank holding company described in subsection (a) and nonbank financial company supervised by the Board of Governors, and any subsidiary thereof, shall provide to the Council, at the request of the Council, copies of all reports referred to in paragraph (1).CommentsClose CommentsPermalink





(3) CONFIDENTIALITY- The Council shall maintain the confidentiality of the reports obtained under subsection (a) and paragraph (1)(A) of this subsection.CommentsClose CommentsPermalink

SEC. 117. TREATMENT OF CERTAIN COMPANIES THAT CEASE TO BE BANK HOLDING COMPANIES.

(a) Applicability- This section shall apply to any entity or a successor entity that--CommentsClose CommentsPermalink





(1) was a bank holding company having total consolidated assets equal to or greater than $50,000,000,000 as of January 1, 2010; andCommentsClose CommentsPermalink





(2) received financial assistance under or participated in the Capital Purchase Program established under the Troubled Asset Relief Program authorized by the Emergency Economic Stabilization Act of 2008.CommentsClose CommentsPermalink





(b) Treatment- If an entity described in subsection (a) ceases to be a bank holding company at any time after January 1, 2010, then such entity shall be treated as a nonbank financial company supervised by the Board of Governors, as if the Council had made a determination under section 113 with respect to that entity.CommentsClose CommentsPermalink





(c) Appeal-CommentsClose CommentsPermalink





(1) REQUEST FOR HEARING- An entity may request, in writing, an opportunity for a written or oral hearing before the Council to appeal its treatment as a nonbank financial company supervised by the Board of Governors in accordance with this section. Upon receipt of the request, the Council shall fix a time (not later than 30 days after the date of receipt of the request) and place at which such entity may appear, personally or through counsel, to submit written materials (or, at the sole discretion of the Council, oral testimony and oral argument).CommentsClose CommentsPermalink





(2) DECISION-CommentsClose CommentsPermalink





(A) PROPOSED DECISION- Not later than 60 days after the date of a hearing under paragraph (1), the Council shall submit a report to, and may testify before, the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives on the proposed decision of the Council regarding an appeal under paragraph (1), which report shall include a statement of the basis for the proposed decision of the Council.CommentsClose CommentsPermalink





(B) NOTICE OF FINAL DECISION- The Council shall notify the subject entity of the final decision of the Council regarding an appeal under paragraph (1), which notice shall contain a statement of the basis for the final decision of the Council, not later than 60 days after the later of--CommentsClose CommentsPermalink





(i) the date of the submission of the report under subparagraph (A); orCommentsClose CommentsPermalink





(ii) if the Committee on Banking, Housing, and Urban Affairs of the Senate or the Committee on Financial Services of the House of Representatives holds one or more hearings regarding such report, the date of the last such hearing.CommentsClose CommentsPermalink





(C) CONSIDERATIONS- In making a decision regarding an appeal under paragraph (1), the Council shall consider whether the company meets the standards under section 113(a) or 113(b), as applicable, and the definition of the term ‘nonbank financial company’ under section 102. The decision of the Council shall be final, subject to the review under paragraph (3).CommentsClose CommentsPermalink





(3) REVIEW- If the Council denies an appeal under this subsection, the Council shall, not less frequently than annually, review and reevaluate the decision.CommentsClose CommentsPermalink

SEC. 118. COUNCIL FUNDING.

Any expenses of the Council shall be treated as expenses of, and paid by, the Office of Financial Research.CommentsClose CommentsPermalink

SEC. 119. RESOLUTION OF SUPERVISORY JURISDICTIONAL DISPUTES AMONG MEMBER AGENCIES.

(a) Request for Dispute Resolution- The Council shall resolve a dispute among 2 or more member agencies, if--CommentsClose CommentsPermalink





(1) a member agency has a dispute with another member agency about the respective jurisdiction over a particular bank holding company, nonbank financial company, or financial activity or product (excluding matters for which another dispute mechanism specifically has been provided under Federal law);CommentsClose CommentsPermalink





(2) the Council determines that the disputing agencies cannot, after a demonstrated good faith effort, resolve the dispute without the intervention of the Council; andCommentsClose CommentsPermalink





(3) any of the member agencies involved in the dispute--CommentsClose CommentsPermalink





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





(B) requests in writing, not earlier than 14 days after providing the notice described in subparagraph (A), that the Council resolve the dispute.CommentsClose CommentsPermalink





(b) Council Decision- The Council shall resolve each dispute described in subsection (a)--CommentsClose CommentsPermalink





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





(2) after consideration of relevant information provided by each agency party to the 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--CommentsClose CommentsPermalink





(1) be in writing;CommentsClose CommentsPermalink





(2) include an explanation of the reasons therefor; andCommentsClose CommentsPermalink





(3) be binding on all Federal agencies that are parties to the dispute.CommentsClose CommentsPermalink

SEC. 120. ADDITIONAL STANDARDS APPLICABLE TO ACTIVITIES OR PRACTICES FOR FINANCIAL STABILITY PURPOSES.

(a) In General- The Council may issue recommendations to the primary financial regulatory agencies to apply new or heightened standards and safeguards, including standards enumerated in section 115, for a financial activity or practice conducted by bank holding companies or nonbank financial companies under their respective jurisdictions, if the Council determines that the conduct of such activity or practice could create or increase the risk of significant liquidity, credit, or other problems spreading among bank holding companies and nonbank financial companies or the financial markets of the United States.CommentsClose CommentsPermalink





(b) Procedure for Recommendations to Regulators-CommentsClose CommentsPermalink





(1) NOTICE AND OPPORTUNITY FOR COMMENT- The Council shall consult with the primary financial regulatory agencies and provide notice to the public and opportunity for comment for any proposed recommendation that the primary financial regulatory agencies apply new or heightened standards and safeguards for a financial activity or practice.CommentsClose CommentsPermalink





(2) CRITERIA- The new or heightened standards and safeguards for a financial activity or practice recommended under paragraph (1)--CommentsClose CommentsPermalink





(A) shall take costs to long-term economic growth into account; andCommentsClose CommentsPermalink





(B) may include prescribing the conduct of the activity or practice in specific ways (such as by limiting its scope, or applying particular capital or risk management requirements to the conduct of the activity) or prohibiting the activity or practice.CommentsClose CommentsPermalink





(c) Implementation of Recommended Standards-CommentsClose CommentsPermalink





(1) ROLE OF PRIMARY FINANCIAL REGULATORY AGENCY-CommentsClose CommentsPermalink





(A) IN GENERAL- Each primary financial regulatory agency may impose, require reports regarding, examine for compliance with, and enforce standards in accordance with this section with respect to those entities for which it is the primary financial regulatory agency.CommentsClose CommentsPermalink





(B) RULE OF CONSTRUCTION- The authority under this paragraph is in addition to, and does not limit, any other authority of a primary financial regulatory agency. Compliance by an entity with actions taken by a primary financial regulatory agency under this section shall be enforceable in accordance with the statutes governing the respective jurisdiction of the primary financial regulatory agency over the entity, as if the agency action were taken under those statutes.CommentsClose CommentsPermalink





(2) IMPOSITION OF STANDARDS- The primary financial regulatory agency shall impose the standards recommended by the Council in accordance with subsection (a), or similar standards that the Council deems acceptable, or shall explain in writing to the Council, not later than 90 days after the date on which the Council issues the recommendation, why the agency has determined not to follow the recommendation of the Council.CommentsClose CommentsPermalink





(d) Report to Congress- The Council shall report to Congress on--CommentsClose CommentsPermalink





(1) any recommendations issued by the Council under this section;CommentsClose CommentsPermalink





(2) the implementation of, or failure to implement such recommendation on the part of a primary financial regulatory agency; andCommentsClose CommentsPermalink





(3) in any case in which no primary financial regulatory agency exists for the nonbank financial company conducting financial activities or practices referred to in subsection (a), recommendations for legislation that would prevent such activities or practices from threatening the stability of the financial system of the United States.CommentsClose CommentsPermalink





(e) Effect of Rescission of Identification-CommentsClose CommentsPermalink





(1) NOTICE- The Council may recommend to the relevant primary financial regulatory agency that a financial activity or practice no longer requires any standards or safeguards implemented under this section.CommentsClose CommentsPermalink





(2) DETERMINATION OF PRIMARY FINANCIAL REGULATORY AGENCY TO CONTINUE-CommentsClose CommentsPermalink





(A) IN GENERAL- Upon receipt of a recommendation under paragraph (1), a primary financial regulatory agency that has imposed standards under this section shall determine whether standards that it has imposed under this section should remain in effect.CommentsClose CommentsPermalink





(B) APPEAL PROCESS- Each primary financial regulatory agency that has imposed standards under this section shall promulgate regulations to establish a procedure under which entities under its jurisdiction may appeal a determination by such agency under this paragraph that standards imposed under this section should remain in effect.CommentsClose CommentsPermalink