Systemic Risk Designation Improvement Act of 2014 - Amends the Dodd-Frank Wall Street Reform and Consumer Protection Act to authorize the Financial Stability Oversight Council to determine that a bank holding company shall be subject to enhanced supervision and prudential standards by the Board of Governors of the Federal Reserve System, if the Council makes a final determination that material financial distress at the bank holding company, or the nature, scope, size, scale, concentration, interconnectedness, or mix of its activities, could threaten the financial stability of the United States.
Requires that final determination to be based upon specified factors using an indicator-based measurement approach established by the Basel Committee on Banking Supervision to determine systemic importance.
Exempts from any Council determination to subject a bank holding company to enhanced supervision and prudential standards a bank holding company with total consolidated assets of $50 billion or less.
Prohibits the Council, before the effective date of this Act, from making a final determination concerning any material financial distress of a bank holding company identified by the Financial Stability Board as a Global Systemically Important Financial Institution.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4060 Introduced in House (IH)]
113th CONGRESS
2d Session
H. R. 4060
To amend the Dodd-Frank Wall Street Reform and Consumer Protection Act
to specify when bank holding companies may be subject to certain
enhanced supervision, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 14, 2014
Mr. Luetkemeyer (for himself, Mr. Bachus, Mr. Stivers, Mr. David Scott
of Georgia, Mr. Murphy of Florida, and Ms. Sewell of Alabama)
introduced the following bill; which was referred to the Committee on
Financial Services
_______________________________________________________________________
A BILL
To amend the Dodd-Frank Wall Street Reform and Consumer Protection Act
to specify when bank holding companies may be subject to certain
enhanced supervision, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Systemic Risk Designation
Improvement Act of 2014''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for the Dodd-Frank Wall Street Reform and
Consumer Protection Act (12 U.S.C. 5301 et seq.) is amended by striking
the item relating to section 113 and inserting the following:
``Sec. 113. Authority to require enhanced supervision and regulation of
certain nonbank financial companies and
certain bank holding companies.''.
SEC. 3. REVISIONS TO COUNCIL AUTHORITY.
(a) Purposes and Duties.--Section 112 of the Dodd-Frank Wall Street
Reform and Consumer Protection Act (12 U.S.C. 5322) is amended in
subsection (a)(2)(I) by inserting before the semicolon ``, which have
been the subject of a final determination under section 113''.
(b) Bank Holding Company Designation.--Section 113 of the Dodd-
Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 5323)
is amended--
(1) by amending the heading for such section to read as
follows: ``authority to require enhanced supervision and
regulation of certain nonbank financial companies and certain
bank holding companies'';
(2) by redesignating subsections (c), (d), (e), (f), (g),
(h), and (i) as subsections (d), (e), (f), (g), (h), (i), and
(j), respectively;
(3) by inserting after subsection (b) the following:
``(c) Bank Holding Companies Subject to Enhanced Supervision and
Prudential Standards Under Section 165.--
``(1) Determination.--The Council, on a nondelegable basis
and by a vote of not fewer than \2/3\ of the voting members
then serving, including an affirmative vote by the Chairperson,
may determine that a bank holding company shall be subject to
enhanced supervision and prudential standards by the Board of
Governors, in accordance with section 165, if the Council
determines, based on the considerations in paragraph (2), that
material financial distress at the bank holding company, or the
nature, scope, size, scale, concentration, interconnectedness,
or mix of the activities of the bank holding company, could
pose a threat to the financial stability of the United States.
``(2) Considerations.--In making a determination under
paragraph (1), the Council shall use the indicator-based
measurement approach established by the Basel Committee on
Banking Supervision to determine systemic importance, which
considers--
``(A) the size of the bank holding company;
``(B) the interconnectedness of the bank holding
company;
``(C) the extent of readily available substitutes
or financial institution infrastructure for the
services of the bank holding company;
``(D) the global cross-jurisdictional activity of
the bank holding company; and
``(E) the complexity of the bank holding company.
``(3) Exemption for certain bank holding companies.--This
subsection shall not apply to a bank holding company with total
consolidated assets of $50,000,000,000 or less.'';
(4) in subsection (d), as so redesignated--
(A) in paragraph (1)(A), by striking ``subsection
(a)(2) or (b)(2)'' and inserting ``subsection (a)(2),
(b)(2), or (c)(2)''; and
(B) in paragraph (4), by striking ``Subsections (d)
through (h)'' and inserting ``Subsections (e) through
(i)'';
(5) in subsections (e), (f), (g), (h), (i), and (j)--
(A) by striking ``subsections (a) and (b)'' each
place such term appears and inserting ``subsections
(a), (b), and (c)''; and
(B) by striking ``nonbank financial company'' each
place such term appears and inserting ``bank holding
company for which there has been a determination under
subsection (c) or nonbank financial company'';
(6) in subsection (g), as so redesignated, by striking
``subsection (e)'' and inserting ``subsection (f)'';
(7) in subsection (h), as so redesignated, by striking
``subsection (a), (b), or (c)'' and inserting ``subsection (a),
(b), (c), or (d)''; and
(8) in subsection (i), as so redesignated, by striking
``subsection (d)(2), (e)(3), or (f)(5)'' and inserting
``subsection (e)(2), (f)(3), or (g)(5)''.
(c) Enhanced Supervision.--Section 115 of the Dodd-Frank Wall
Street Reform and Consumer Protection Act (12 U.S.C. 5325) is amended--
(1) in subsection (a)(1), by striking ``large,
interconnected bank holding companies'' and inserting ``bank
holding companies which have been the subject of a final
determination under section 113'';
(2) in subsection (a)(2)--
(A) in subparagraph (A), by striking ``or'' at the
end;
(B) by striking ``the Council may'' and all that
follows through ``differentiate'' and inserting ``the
Council may differentiate''; and
(C) by striking subparagraph (B); and
(3) in subsection (b)(3), by striking ``subsections (a) and
(b) of section 113'' each place such term appears and inserting
``subsections (a), (b), and (c) of section 113''.
(d) Reports.--Section 116(a) of the Dodd-Frank Wall Street Reform
and Consumer Protection Act (12 U.S.C. 5326(a)) is amended by striking
``with total consolidated assets of $50,000,000,000 or greater'' and
inserting ``which has been the subject of a final determination under
section 113''.
(e) Mitigation.--Section 121 of the Dodd-Frank Wall Street Reform
and Consumer Protection Act (12 U.S.C. 5331) is amended--
(1) in subsection (a), by striking ``with total
consolidated assets of $50,000,000,000 or more'' and inserting
``which has been the subject of a final determination under
section 113''; and
(2) in subsection (c), by striking ``subsection (a) or (b)
of section 113'' and inserting ``subsection (a), (b), or (c) of
section 113''.
(f) Office of Financial Research.--Section 155 of the Dodd-Frank
Wall Street Reform and Consumer Protection Act (12 U.S.C. 5345) is
amended in subsection (d) by striking ``with total consolidated assets
of 50,000,000,000 or greater'' and inserting ``which have been the
subject of a final determination under section 113''.
SEC. 4. REVISIONS TO BOARD AUTHORITY.
(a) Acquisitions.--Section 163 of the Dodd-Frank Wall Street Reform
and Consumer Protection Act (12 U.S.C. 5363) is amended by striking
``with total consolidated assets equal to or greater than
$50,000,000,000'' each place such term appears and inserting ``which
has been the subject of a final determination under section 113''.
(b) Management Interlocks.--Section 164 of the Dodd-Frank Wall
Street Reform and Consumer Protection Act (12 U.S.C. 5364) is amended
by striking ``with total consolidated assets equal to or greater than
$50,000,000,000'' and inserting ``which has been the subject of a final
determination under section 113''.
(c) Enhanced Supervision and Prudential Standards.--Section 165 of
the Dodd-Frank Wall Street Reform and Consumer Protection Act (12
U.S.C. 5365) is amended--
(1) in subsection (a), by striking ``with total
consolidated assets equal to or greater than $50,000,000,000''
and inserting ``which have been the subject of a final
determination under section 113'';
(2) in subsection (a)(2)--
(A) by striking ``(A) In general.--''; and
(B) by striking subparagraph (B);
(3) by striking ``subsections (a) and (b) of section 113''
each place such term appears and inserting ``subsections (a),
(b), and (c) of section 113''; and
(4) in subsection (j), by striking ``with total
consolidated assets equal to or greater than $50,000,000,000''
and inserting ``which has been the subject of a final
determination under section 113''.
(d) Conforming Amendment.--The second subsection (s) (relating to
``Assessments, Fees, and Other Charges for Certain Companies'') of
section 11 of the Federal Reserve Act (12 U.S.C. 248) is amended--
(1) by redesignating such subsection as subsection (t); and
(2) in paragraph (2)--
(A) in subparagraph (A), by striking ``having total
consolidated assets of $50,000,000,000 or more;'' and
inserting ``which have been the subject of a final
determination under section 113 of the Dodd-Frank Wall
Street Reform and Consumer Protection Act; and'';
(B) by striking subparagraph (B); and
(C) by redesignating subparagraph (C) as
subparagraph (B).
SEC. 5. EFFECTIVE DATE.
(a) In General.--Subject to subsection (b), the amendments made by
this Act shall take effect one year after the date of enactment of this
Act.
(b) Presumption of Determination.--Notwithstanding subsection (a),
with respect to a bank holding company that has been identified by the
Financial Stability Board as a Global Systemically Important Financial
Institution, the Financial Stability Oversight Council may, upon
enactment of this Act, begin proceedings for a determination under
section 113(c) of the Dodd-Frank Wall Street Reform and Consumer
Protection Act, as added by section 3(b)(3), but the Council may not
make a final determination under such section 113(c) with respect to a
bank holding company before the effective date described under
subsection (a).
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line