S.3241 - SAFE Banking Act of 2010

A bill to provide for a safe, accountable, fair, and efficient banking system, and for other purposes. view all titles (5)

All Bill Titles

  • Official: A bill to provide for a safe, accountable, fair, and efficient banking system, and for other purposes. as introduced.
  • Popular: SAFE Banking Act as introduced.
  • Popular: SAFE Banking Act of 2010 as introduced.
  • Short: Safe, Accountable, Fair, and Efficient Banking Act of 2010 as introduced.
  • Short: SAFE Banking Act of 2010 as introduced.

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Introduced
 
Senate
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House
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President
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04/21/10
 
 
 
 
 
 
 

OpenCongress Summary

This bill would create size and leverage limits on banks and non-bank financial firms. Under the bill, no single banks would be allowed to hold more than 10% of the total amount of all U.S. bank deposits, leverage limits would be set at 6%, and non-deposit liabilities would be capped at 2% for banks and 3% for non-bank firms. The bill's deposit cap would result in the shrinking of asome of the largest U.S. banks.

It was voted on and rejected as an amendment to the Dodd-Frank financial reform bill, 33-61.
OpenCongress bill summaries are written by OpenCongress editors and are entirely independent of Congress and the federal government. For the summary provided by Congress itself, via the Congressional Research Service, see the "Official Summary" below.

Official Summary

Safe, Accountable, Fair, and Efficient Banking Act of 2010 or the SAFE Banking Act of 2010 - Amends the Bank Holding Company Act of 1956 to prohibit a bank holding company from holding more than 10% of the total amount of deposits of insured depository institutions in the United States. Dir

Official Summary

Safe, Accountable, Fair, and Efficient Banking Act of 2010 or the SAFE Banking Act of 2010 - Amends the Bank Holding Company Act of 1956 to prohibit a bank holding company from holding more than 10% of the total amount of deposits of insured depository institutions in the United States. Directs the Board of Governors of the Federal Reserve System to require any bank holding company having a deposit concentration in violation of this Act to sell or transfer assets to unaffiliated firms to bring the company into compliance with this Act. Prescribes minimum leverage ratios (6% of average total consolidated assets) and balance sheet leverage ratios (6% of tier 1 capital for all outstanding balance sheet liabilities) for tier 1 capital maintained by a bank holding company or financial company. Authorizes the Board and other federal regulators to grant an emergency temporary exemption from such ratio requirements where necessary to prevent an imminent threat to the financial stability of the United States. Directs the Board to:
(1) establish a leverage ratio and a balance sheet leverage ratio for all operating subsidiaries of bank holding companies and financial companies; and
(2) require a noncompliant bank holding company or financial company to raise capital, sell, or otherwise transfer assets or off-balance sheet items to unaffiliated firms (prompt corrective action). Prohibits a bank holding company from possessing nondeposit liabilities exceeding 2% percent of the annual gross domestic product (GDP) of the United States. Authorizes the Board to:
(1) set a separate liability limit for certain bank holding companies primarily engaged in the business of insurance; and
(2) exclude specified deposits from its calculation of nondeposit liabilities if necessary to ensure consistent and equitable treatment of institutions with international operations. Prohibits a financial company from possessing nondeposit liabilities exceeding 3% of the U.S. annual GDP. Requires the Board to conduct, and report to Congress on, an annual capital assessment to estimate losses, revenues, and reserve needs for bank holding companies and financial companies. Amends the Securities Exchange Act of 1934 to instruct the Securities and Exchange Commission (SEC) to issue a rule requiring certain issuers of securities to record all assets and liabilities on their balance sheets and all financings of assets for which the issuer has more than minimal economic risks or rewards.

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