118 S3601 IS: Financial Stability Oversight Council Improvement Act of 2024 U.S. Senate 2024-01-17 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

II118th CONGRESS2d SessionS. 3601IN THE SENATE OF THE UNITED STATESJanuary 17, 2024Mr. Rounds (for himself and Ms. Sinema) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban AffairsA BILLTo amend the Financial Stability Act of 2010 to require the Financial Stability Oversight Council to consider alternative approaches before determining that a U.S. nonbank financial company shall be supervised by the Board of Governors of the Federal Reserve System, and for other purposes.

1.

Short title

This Act may be cited as the Financial Stability Oversight Council Improvement Act of 2024.

2.

Financial Stability Oversight Council

(a)

In general

Section 113 of the Financial Stability Act of 2010 (12 U.S.C. 5323) is amended—(1)in subsection (a)—(A)in paragraph (1), by striking The Council and inserting Subject to paragraph (3), the Council; and(B)by adding at the end the following:(3)

Initial determination

The Council may not vote on a proposed determination with respect to a U.S. nonbank financial company under paragraph (1) unless the Council first determines, in consultation with the company and the primary financial regulatory agency with respect to the company, that a different action by the Council or the agency (including the application of new or heightened standards and safeguards under section 120), or by the company under a written plan that is submitted promptly to the Council, is impracticable or insufficient to mitigate the threat that the company could pose to the financial stability of the United States.; and(2)in subsection (f)(1), by striking subsection (e) and inserting subsections (a)(3) and (e).(b)

Additional duties

Section 112(a)(2) of the Financial Stability Act of 2010 (12 U.S.C. 5322(a)(2)) is amended—(1)in subparagraph (M)(ii), by striking and at the end;(2)in subparagraph (N)(vi)(III), by striking the period at the end and inserting a semicolon; and(3)by adding at the end the following:(O)not later than 180 days after the date of enactment of this subparagraph, and once every 360 days thereafter, submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report that—(i)identifies—(I)the planning materials relating to a threat to the financial stability of the United States that are available for collection by, and dissemination to, member agencies; and(II)the potential gaps in planning activities with respect to a threat to the financial stability of the United States and the threats posed by those gaps; and(ii)includes— (I)steps taken by the Council to plan for a crisis with respect to the financial stability of the United States, which shall be consistent with discussions by member agencies; and(II)a review of financial activities, products, and practices; and(P)after any closed meeting of the Council, publicly release detailed minutes of that meeting..