I 111th CONGRESS 2d Session H. R. 4516 IN THE HOUSE OF REPRESENTATIVES January 26, 2010 Mr. Dingell introduced the following bill; which was referred to the Committee on Financial Services A BILL To provide stability in the financial services industry by promoting transparency, simplicity, fairness, accountability, and equal access in the market for consumer financial products or services and ensuring that no financial company becomes too big to fail, and for other purposes.

1.

Short title; definitions

(a)

Short title

This Act may be cited as the Financial Services Industry Stability Act of 2010. (b)

Definitions

For purposes of this Act, the following definitions shall apply: (1)

Chairperson

The term Chairperson means the Chairman of the Board of Governors of the Federal Reserve System. (2)

Financial company

The term financial company means a company or other entity— (A)that is— (i)incorporated or organized under the laws of the United States or any State, territory, or possession of the United States, the District of Columbia, Commonwealth of Puerto Rico, Commonwealth of Northern Mariana Islands, Guam, American Samoa, or the United States Virgin Islands; or (ii)a company incorporated in or organized in a country other than the United States that has significant operations in the United States through— (I)a Federal or State branch or agency of a foreign bank (as such terms are defined in the International Banking Act of 1978 (12 U.S.C. 3101 et seq.)); or (II)a United States affiliate or other United States operating entity of a company that is incorporated or organized in a country other than the United States; and (B)that is, in whole or in part, directly or indirectly, engaged in financial activities.

2.

Federal agency actions and consultations; report

(a)

Review of programs To promote the public interest

(1)

Federal Reserve Board review

The Chairperson shall— (A)review all programs administered by the Board of Governors of the Federal Reserve System; and (B)utilize such programs in furtherance of the purposes of this Act. (2)

Other agency action

Each Federal department, agency, and independent establishment in the Executive branch shall, in consultation with, and with the assistance of, the Chairperson, utilize any authority of such department, agency, or establishment, under any provision of law, in furtherance of the purposes of this Act by carrying out programs to promote transparency, simplicity, fairness, accountability, and equal access in the market for consumer financial products or services. (b)

Ensure no financial company becomes too big To fail

The head of each Federal department, agency, and independent establishment in the Executive branch shall, in consultation with, and with the assistance of, the Chairperson, take such steps as may be necessary to ensure that no financial company is able to pose a systemic risk to the health of the United States economy by becoming too large to fail. (c)

Definitions and rulemaking

(1)

In general

The Chairperson shall, in accordance with section 553 of title 5, United States Code, and in consultation with all departments, agencies, and independent establishments in the Executive branch, prescribe regulations which, at a minimum, shall— (A)define the terms systemic risk and too large to fail, consistent with the best financial and commercial data available; (B)enumerate procedures that specify when and how the Chairperson and the head of any other Federal department, agency, or independent establishment in the Executive branch shall— (i)cause financial companies that, in accordance with such regulations, are determined to be too large to fail to restructure themselves in size and scope of operations so as not to pose a systemic risk to the health of the United States economy; and (ii)impose increased capital reserve requirements upon any financial company which has been ordered to restructure under clause (i), the appropriate levels of which shall be determined by regulations prescribed under this section; (C)define the criteria to be used by the Chairperson and the head of any other Federal department, agency, or independent establishment in the Executive branch in causing the restructuring of financial companies under subparagraph (B)(i); and (D)establish a fund comprised of annual levies on financial companies at levels deemed appropriate by the Chairperson and the head of each Federal department, agency, or independent establishment in the Executive branch for the purpose of financing restructurings pursuant to subparagraph (B)(i). (2)

Regulations

The Chairperson shall commence the process for prescribing the regulations required under this subsection before the end of the 30-day period beginning on the date of the enactment of this Act. (d)

Report to the Congress

The Chairperson and the head of each Federal department, agency, and independent establishment in the Executive branch shall submit an annual report to the Congress not later than January 1st of each year detailing the activities of the Board of Governors of the Federal Reserve System or such department, agency, or establishment in carrying out the requirements of this section.