3.0.0 3968 2023-01-11T13:17:48Z 2023-01-11T13:17:48Z House H HR 2009-10-29 111 hsba00 Financial Services Committee House Standing Referred to 2009-10-29T14:03:47Z 2009-10-29 Referred to the House Committee on Financial Services. IntroReferral H11100 2 House floor actions hsba00 Financial Services Committee 2009-10-29 Introduced in House IntroReferral Intro-H 9 Library of Congress 2009-10-29 Introduced in House IntroReferral 1000 9 Library of Congress E000288 Rep. Ellison, Keith [D-MN-5] Keith Ellison D MN 5 N Finance and Financial Sector Administrative law and regulatory procedures Bank accounts, deposits, capital Banking and financial institutions regulation Bankruptcy Business investment and capital Corporate finance and management Federal Reserve System Wages and earnings Finance and Financial Sector 00 2009-10-29 Introduced in House 2010-01-06T20:11:58Z Amends the Bank Holding Company Act of 1956 to instruct the Board of Governors of the Federal Reserve System to: (1) take prompt corrective action to resolve the problems of a bank holding company; (2) prescribe capital standards for bank holding companies, including a leverage limit and a risk-based capital requirement; (3) specify for each relevant capital measure the levels at which a bank holding company is well capitalized, undercapitalized, and significantly undercapitalized; and (4) specify the ratio of tangible equity to total assets at which a bank holding company is critically undercapitalized.

Prohibits a bank holding company, except under certain conditions, from making a capital distribution if it would be undercapitalized after making the distribution.

Requires the Board to monitor the condition and compliance of any undercapitalized bank holding company regarding its capital restoration plans, restrictions, and requirements.

Requires an undercapitalized bank holding company to submit an acceptable capital restoration plan to the Board.

Prohibits such a company from obtaining acquisitions and new lines of business without prior Board approval.

Sets forth mandatory Board actions with respect to undercapitalized bank holding companies that fail to submit or implement capital restoration plans, including: (1) requiring recapitalization; (2) restricting asset growth and transactions with affiliates; (3) requiring dismissal of directors or senior executive officers; (4) ordering a new election of the board of directors; and (5) requiring divestiture of affiliates.

Requires prior written Board approval for senior executive compensation that exceeds the officer's average rate of compensation during a specified period preceding the undercapitalization of the bank holding company.

Specifies additional discretionary measures following Board determination that a bank holding company is either in an unsafe or unsound condition, or engaging in an unsafe or unsound practice.

Requires a petition in bankruptcy for a critically undercapitalized bank holding company.

]]> To amend the Bank Holding Company Act of 1956 to require the Board of Governors of the Federal Reserve System to take prompt corrective action to resolve problems of bank holding companies. Display Title To amend the Bank Holding Company Act of 1956 to require the Board of Governors of the Federal Reserve System to take prompt corrective action to resolve problems of bank holding companies. Official Title as Introduced To amend the Bank Holding Company Act of 1956 to require the Board of Governors of the Federal Reserve System to take prompt corrective action to resolve problems of bank holding companies. Introduced in House IH Introduced in House 2009-10-29T04:00:00Z https://www.govinfo.gov/content/pkg/BILLS-111hr3968ih/xml/BILLS-111hr3968ih.xml 2009-10-29 Referred to the House Committee on Financial Services. 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. Congressional Research Service, Library of Congress This file contains bill summaries and statuses for federal legislation. A bill summary describes the most significant provisions of a piece of legislation and details the effects the legislative text may have on current law and federal programs. Bill summaries are authored by the Congressional Research Service (CRS) of the Library of Congress. As stated in Public Law 91-510 (2 USC 166 (d)(6)), one of the duties of CRS is "to prepare summaries and digests of bills and resolutions of a public general nature introduced in the Senate or House of Representatives". For more information, refer to the User Guide that accompanies this file.