Short title

This Act may be cited as the

Systemic Risk Designation Improvement Act of 2014

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.

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.

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).

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).