Financial Institution Living Will Improvement Act of 2018
This bill amends the Dodd-Frank Wall Street Reform and Consumer Protection Act to establish the frequency with which certain nonbank financial companies and bank holding companies shall be required to submit a "living will" (i.e., the company's plan for rapid and orderly resolution in the event of financial distress or failure) to the Federal Reserve Board (FRB), the Financial Stability Oversight Council, and the Federal Deposit Insurance Corporation (FDIC). Specifically, such companies shall be required to do so once every two years. (Current regulations generally require annual submission of plans.)
The FRB and the FDIC must provide feedback to a company regarding such a plan within six months.
[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 3070 Introduced in Senate (IS)]
<DOC>
115th CONGRESS
2d Session
S. 3070
To reform the living will process under the Dodd-Frank Wall Street
Reform and Consumer Protection Act.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 14, 2018
Mr. Rounds (for himself and Mr. Jones) introduced the following bill;
which was read twice and referred to the Committee on Banking, Housing,
and Urban Affairs
_______________________________________________________________________
A BILL
To reform the living will process under the Dodd-Frank Wall Street
Reform and Consumer Protection Act.
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 ``Financial Institution Living Will
Improvement Act of 2018''.
SEC. 2. LIVING WILL REFORMS.
(a) In General.--Section 165(d) of the Dodd-Frank Wall Street
Reform and Consumer Protection Act (12 U.S.C. 5365(d)) is amended--
(1) in paragraph (1), by striking ``periodically'' and
inserting ``every 2 years''; and
(2) in paragraph (3)--
(A) by striking ``The Board'' and inserting the
following:
``(A) In general.--The Board'';
(B) by striking ``shall review'' and inserting the
following: ``shall--
``(i) review'';
(C) by striking the period and inserting ``; and'';
and
(D) by adding at the end the following:
``(ii) not later than the end of the 6-
month period beginning on the date the company
submits the resolution plan, provide feedback
to the company on such plan.
``(B) Disclosure of assessment framework.--The
Board of Governors and the Corporation shall publicly
disclose the assessment framework that is used to
review information under this paragraph.''.
(b) Treatment of Other Resolution Plan Requirements.--
(1) In general.--With respect to an appropriate Federal
banking agency that requires a banking organization to submit
to the agency a resolution plan not described under section
165(d) of the Dodd-Frank Wall Street Reform and Consumer
Protection Act--
(A) the respective agency shall ensure that the
review of such resolution plan is consistent with the
requirements contained in the amendments made by this
Act;
(B) the agency may not require the submission of
such a resolution plan more often than every 2 years;
and
(C) paragraphs (6) and (7) of such section 165(d)
shall apply to such a resolution plan.
(2) Definitions.--For purposes of this subsection:
(A) Appropriate federal banking agency.--The term
``appropriate Federal banking agency''--
(i) has the meaning given such term under
section 3 of the Federal Deposit Insurance Act;
and
(ii) means the National Credit Union
Administration, in the case of an insured
credit union.
(B) Banking organization.--The term ``banking
organization'' means--
(i) an insured depository institution;
(ii) an insured credit union;
(iii) a depository institution holding
company;
(iv) a company that is treated as a bank
holding company for purposes of section 8 of
the International Banking Act; and
(v) a U.S. intermediate holding company
established by a foreign banking organization
pursuant to section 252.153 of title 12, Code
of Federal Regulations.
(C) Insured credit union.--The term ``insured
credit union'' has the meaning given that term under
section 101 of the Federal Credit Union Act.
(D) Other banking terms.--The terms ``depository
institution holding company'' and ``insured depository
institution'' have the meaning given those terms,
respectively, under section 3 of the Federal Deposit
Insurance Act.
(c) Rule of Construction.--Nothing in this Act, or any amendment
made by this Act, shall be construed as limiting the authority of an
appropriate Federal banking agency (as defined under subsection (b)(2))
to obtain information from an institution in connection with such
agency's authority to examine or require reports from the institution.
<all>
Introduced in Senate
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
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