[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 3497 Introduced in Senate (IS)]

112th CONGRESS
  2d Session
                                S. 3497

    To amend the Financial Stability Act of 2010 to repeal certain 
designation authority of the Financial Stability Oversight Council, to 
 repeal the Payment, Clearing, and Settlement Supervision Act of 2010, 
                        and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             August 2, 2012

  Mr. Vitter introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
    To amend the Financial Stability Act of 2010 to repeal certain 
designation authority of the Financial Stability Oversight Council, to 
 repeal the Payment, Clearing, and Settlement Supervision Act of 2010, 
                        and for other purposes.

    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 ``Terminating the Expansion of Too-
Big-To-Fail Act of 2012''.

SEC. 2. REPEAL OF DESIGNATION AUTHORITY UNDER THE FINANCIAL STABILITY 
              ACT OF 2010.

    (a) In General.--The Dodd Frank Wall Street Reform and Consumer 
Protection Act (Public Law 111-203) is amended--
            (1) in section 102 (12 U.S.C. 5311)--
                    (A) in subsection (a)--
                            (i) by striking paragraph (4); and
                            (ii) by amending paragraph (7) to read as 
                        follows:
            ``(7) Significant bank holding company.--The term 
        `significant bank holding company' has the meanings given to it 
        by rule of the Board of Governors.''; and
                    (B) by striking subsection (c);
            (2) in section 112 (12 U.S.C. 5322)--
                    (A) in subsection (a)--
                            (i) in paragraph (1)(A), by striking ``or 
                        nonbank financial companies''; and
                            (ii) in paragraph (2)--
                                    (I) in subparagraph (A), by 
                                striking ``and nonbank financial 
                                companies'';
                                    (II) by striking subparagraphs (H) 
                                and (J);
                                    (III) by redesignating 
                                subparagraphs (I), (K), (L), (M), and 
                                (N) as subparagraphs (H), (I), (J), 
                                (K), and (L), respectively;
                                    (IV) in subparagraph (H), as so 
                                redesignated, by striking ``nonbank 
                                financial companies and'';
                                    (V) in subparagraph (I), as so 
                                redesignated, by striking ``, nonbank 
                                financial companies,''; and
                                    (VI) in subparagraph (L), as so 
                                redesignated--
                                            (aa) by striking clause 
                                        (iv); and
                                            (bb) by redesignating 
                                        clauses (v) and (vi) as clauses 
                                        (iv) and (v), respectively; and
                    (B) in subsection (d)--
                            (i) in paragraph (3)--
                                    (I) in subparagraph (A), by 
                                striking ``nonbank financial company 
                                or'' each place such term appears;
                                    (II) in subparagraph (B), by 
                                striking ``nonbank financial company 
                                or''; and
                                    (III) in subparagraph (C), by 
                                striking ``foreign nonbank financial 
                                company or''; and
                            (ii) by striking paragraph (4);
            (3) by striking sections 113 (12 U.S.C. 5323), 114 (12 
        U.S.C. 5324), 161 (12 U.S.C. 5361), 162 (12 U.S.C. 5362), 164 
        (12 U.S.C. 5364), 167 (12 U.S.C. 5367), 170 (12 U.S.C. 5370), 
        216 (124 Stat. 1519), and 217 (124 Stat. 1519);
            (4) in section 115 (12 U.S.C. 5325)--
                    (A) in the heading for such section, by striking 
                ``nonbank financial companies supervised by the board 
                of governors and'';
                    (B) in subsection (a)(1)--
                            (i) by striking ``nonbank financial 
                        companies supervised by the Board of Governors 
                        and''; and
                            (ii) in subparagraph (A), by striking 
                        ``nonbank financial companies and'';
                    (C) in subsection (b)--
                            (i) in paragraph (2)--
                                    (I) in the heading for such 
                                paragraph, by striking ``financial 
                                companies'' and inserting ``bank 
                                holding companies'';
                                    (II) by striking ``foreign nonbank 
                                financial companies supervised by the 
                                Board of Governors or''; and
                                    (III) in subparagraph (B), by 
                                striking ``foreign nonbank financial 
                                company or''; and
                            (ii) in paragraph (3)--
                                    (I) in subparagraph (A)--
                                            (aa) by striking ``nonbank 
                                        financial companies supervised 
                                        by the Board of Governors 
                                        and''; and
                                            (bb) in clause (i), by 
                                        inserting before the semicolon 
                                        the following: ``(as in effect 
                                        on the day before the date of 
                                        the enactment of the 
                                        Terminating the Expansion of 
                                        Too-Big-To-Fail Act of 2012)''; 
                                        and
                                    (II) in subparagraph (B), by 
                                inserting after ``section 113'' the 
                                following: ``(as in effect on the day 
                                before the date of the enactment of the 
                                Terminating the Expansion of Too-Big-
                                To-Fail Act of 2012)'';
                    (D) in subsection (c)--
                            (i) in paragraph (1), by striking ``nonbank 
                        financial companies supervised by the Board of 
                        Governors and''; and
                            (ii) in paragraph (3)--
                                    (I) in subparagraph (A), by 
                                striking ``any nonbank financial 
                                company supervised by the Board of 
                                Governors and''; and
                                    (II) in subparagraph (B)(iii), by 
                                striking ``a nonbank financial company 
                                supervised by the Board of Governors 
                                or'';
                    (E) in subsection (d)--
                            (i) in paragraph (1), by striking ``each 
                        nonbank financial company supervised by the 
                        Board of Governors and''; and
                            (ii) in paragraph (2)--
                                    (I) by striking ``nonbank financial 
                                company supervised by the Board of 
                                Governors and''; and
                                    (II) by striking ``significant 
                                nonbank financial companies and'' each 
                                place such term appears;
                    (F) in subsection (e), by striking ``nonbank 
                financial companies supervised by the Board of 
                Governors or'';
                    (G) in subsection (f), by striking ``and by nonbank 
                financial companies supervised by the Board of 
                Governors''; and
                    (H) in subsection (g), by striking ``, nonbank 
                financial companies supervised by the Board of 
                Governors,'';
            (5) in section 116 (12 U.S.C. 5326)--
                    (A) in subsection (a), by striking ``or a nonbank 
                financial company supervised by the Board of 
                Governors''; and
                    (B) in subsection (b)--
                            (i) in paragraph (1)(A), by striking ``, 
                        nonbank financial company supervised by the 
                        Board of Governors,''; and
                            (ii) in paragraph (2), by striking ``and 
                        nonbank financial company supervised by the 
                        Board of Governors'';
            (6) in section 117 (12 U.S.C. 5327)--
                    (A) in subsection (b), by striking ``such entity 
                shall be treated as a nonbank financial company 
                supervised by the Board of Governors, as if the Council 
                had made a determination under section 113 with respect 
                to that entity'' and inserting ``for purposes of this 
                title, such entity shall be treated as a bank holding 
                company with total consolidated assets of 
                $50,000,000,000''; and
                    (B) in subsection (c)--
                            (i) in paragraph (1), by striking ``a 
                        nonbank financial company supervised by the 
                        Board of Governors'' and inserting ``a bank 
                        holding company with total consolidated assets 
                        of $50,000,000,000''; and
                            (ii) in paragraph (2), by striking 
                        subparagraph (C);
            (7) in section 119(a) (12 U.S.C. 5329(a)), by striking ``, 
        nonbank financial company,'';
            (8) in section 120 (12 U.S.C. 5330)--
                    (A) in subsection (a)--
                            (i) by striking ``or nonbank financial 
                        companies''; and
                            (ii) by striking ``and nonbank financial 
                        companies''; and
                    (B) in subsection (d)--
                            (i) in paragraph (1), by adding ``and'' at 
                        the end;
                            (ii) in paragraph (2), by striking ``; 
                        and'' and inserting a period; and
                            (iii) by striking paragraph (3);
            (9) in section 121 (12 U.S.C. 5331)--
                    (A) in subsection (a), by striking ``, or a nonbank 
                financial company supervised by the Board of 
                Governors,'';
                    (B) in subsection (c), by inserting after ``section 
                113'' the following: ``(as in effect on the day before 
                the date of the enactment of the Terminating the 
                Expansion of Too-Big-To-Fail Act of 2012)''; and
                    (C) in subsection (d)--
                            (i) in the heading for such subsection, by 
                        striking ``Foreign Financial Companies'' and 
                        inserting ``Foreign-Based Bank Holding 
                        Companies'';
                            (ii) by striking ``foreign nonbank 
                        financial companies supervised by the Board of 
                        Governors and''; and
                            (iii) by amending paragraph (2) to read as 
                        follows:
            ``(2) taking into account the extent to which the foreign-
        based bank holding company is subject on a consolidated basis 
        to home country standards that are comparable to those applied 
        to bank holding companies in the United States.'';
            (10) in the heading for subtitle C, by striking ``Certain 
        Nonbank Financial Companies and'';
            (11) in section 155(d) (12 U.S.C. 5345(d)), by striking 
        ``and nonbank financial companies supervised by the Board of 
        Governors'';
            (12) in section 163 (12 U.S.C. 5363)--
                    (A) by striking subsection (a),
                    (B) by redesignating subsection (b) as subsection 
                (a); and
                    (C) in subsection (a), as so redesignated, by 
                striking ``or a nonbank financial company supervised by 
                the Board of Governors'' each place such term appears;
            (13) in section 165 (12 U.S.C. 5365)--
                    (A) in the heading for such section, by striking 
                ``nonbank financial companies supervised by the board 
                of governors and'';
                    (B) in subsection (a)(1)--
                            (i) by striking ``nonbank financial 
                        companies supervised by the Board of Governors 
                        and''; and
                            (ii) in subparagraph (A), by striking 
                        ``nonbank financial companies and'';
                    (C) in subsection (b)--
                            (i) in paragraph (1), by striking ``nonbank 
                        financial companies supervised by the Board of 
                        Governors and'' each place such term appears;
                            (ii) in paragraph (2)--
                                    (I) in the heading for such 
                                paragraph, by striking ``foreign 
                                financial companies'' and inserting 
                                ``foreign-based bank holding 
                                companies'';
                                    (II) by striking ``foreign nonbank 
                                financial company supervised by the 
                                Board of Governors or''; and
                                    (III) in subparagraph (B)--
                                            (aa) by striking ``foreign 
                                        financial company'' and 
                                        inserting ``foreign-based bank 
                                        holding company''; and
                                            (bb) by striking 
                                        ``financial companies'' and 
                                        inserting ``bank holding 
                                        companies'';
                            (iii) in paragraph (3)--
                                    (I) by inserting after ``section 
                                113'' each place such term appears the 
                                following: ``(as in effect on the day 
                                before the date of the enactment of the 
                                Terminating the Expansion of Too-Big-
                                To-Fail Act of 2012)''; and
                                    (II) in subparagraph (A), by 
                                striking ``nonbank financial companies 
                                supervised by the Board of Governors 
                                and''; and
                            (iv) in paragraph (4), by striking ``a 
                        nonbank financial company supervised by the 
                        Board of Governors or'';
                    (D) in subsection (c)--
                            (i) in paragraph (1)--
                                    (I) by striking ``nonbank financial 
                                company supervised by the Board of 
                                Governors and''; and
                                    (II) by striking ``bank holding 
                                companies'' and inserting ``bank 
                                holding company''; and
                            (ii) in paragraph (2)(D), by striking 
                        ``nonbank financial company supervised by the 
                        Board of Governors or a'';
                    (E) in subsection (d)--
                            (i) by striking ``nonbank financial company 
                        supervised by the Board of Governors and'' each 
                        place such term appears;
                            (ii) in paragraph (1), by striking ``bank 
                        holding companies'' and inserting ``bank 
                        holding company'';
                            (iii) in paragraph (2)--
                                    (I) by striking ``significant 
                                nonbank financial companies and'' each 
                                place such term appears; and
                                    (II) by striking ``bank holding 
                                companies'' and inserting ``bank 
                                holding company'';
                            (iv) in paragraph (4), by striking ``a 
                        nonbank financial company supervised by the 
                        Board of Governors or'';
                            (v) in paragraph (5), by striking ``a 
                        nonbank financial company supervised by the 
                        Board of Governors or'' each place such term 
                        appears; and
                            (vi) in paragraph (6), by striking ``the 
                        nonbank financial company supervised by the 
                        Board, any bank holding company, or any 
                        subsidiary or affiliate of the foregoing'' and 
                        inserting ``any bank holding company or any 
                        subsidiary or affiliate of the bank holding 
                        company'';
                    (F) in subsection (e)--
                            (i) in paragraph (1), by striking ``a 
                        nonbank financial company supervised by the 
                        Board of Governors or'';
                            (ii) in paragraph (2), by striking 
                        ``nonbank financial company supervised by the 
                        Board of Governors and'';
                            (iii) in paragraph (3), by striking ``the 
                        nonbank financial company supervised by the 
                        Board of Governors or'' each place such term 
                        appears; and
                            (iv) in paragraph (4), by striking ``a 
                        nonbank financial company supervised by the 
                        Board of Governors or'';
                    (G) in subsection (f), by striking ``nonbank 
                financial companies supervised by the Board of 
                Governors and'';
                    (H) in subsection (g)(1), by striking ``and any 
                nonbank financial company supervised by the Board of 
                Governors'';
                    (I) in subsection (h)--
                            (i) by striking paragraph (1);
                            (ii) by redesignating paragraphs (2) and 
                        (3) as paragraphs (1) and (2), respectively;
                            (iii) in paragraph (1), as so redesignated, 
                        by striking ``paragraph (3)'' each place such 
                        term appears and inserting ``paragraph (2)''; 
                        and
                            (iv) in paragraph (2), as so redesignated, 
                        by striking ``nonbank financial company 
                        supervised by the Board of Governors or'' each 
                        place such term appears;
                    (J) in subsection (i)--
                            (i) in paragraph (1)--
                                    (I) in subparagraph (A), by 
                                striking ``nonbank financial companies 
                                supervised by the Board of Governors 
                                and''; and
                                    (II) in subparagraph (B), by 
                                striking ``and nonbank financial 
                                companies''; and
                            (ii) in paragraph (2)(A), by striking 
                        ``nonbank financial company supervised by the 
                        Board of Governors and a'';
                    (K) in subsection (j)--
                            (i) in paragraph (1), by striking ``or a 
                        nonbank financial company supervised by the 
                        Board of Governors''; and
                            (ii) in paragraph (2), by inserting after 
                        ``section 113'' the following: ``(as in effect 
                        on the day before the date of the enactment of 
                        the Terminating the Expansion of Too-Big-To-
                        Fail Act of 2012)''; and
                    (L) in subsection (k)(1), by striking ``or nonbank 
                financial company supervised by the Board of 
                Governors'';
            (14) in section 166 (12 U.S.C. 5366), by striking ``a 
        nonbank financial company supervised by the Board of Governors 
        or'' each place such term appears;
            (15) in section 169 (12 U.S.C. 5369), by striking ``and 
        nonbank financial companies'';
            (16) in section 171(b) (12 U.S.C. 5371(b))--
                    (A) by striking ``, depository institution holding 
                companies, and nonbank financial companies supervised 
                by the Board of Governors'' each place such term 
                appears and inserting ``and depository institution 
                holding companies'';
                    (B) in paragraph (3)--
                            (i) by striking ``or nonbank financial 
                        companies supervised by the Board of 
                        Governors''; and
                            (ii) by striking ``or the primary financial 
                        regulatory agency in the case of nonbank 
                        financial companies supervised by the Board of 
                        Governors''; and
                    (C) in paragraph (4)--
                            (i) by striking ``or by nonbank financial 
                        companies supervised by the Board of 
                        Governors'' each place such term appears; and
                            (ii) by adding a period at the end.
    (b) Conforming Amendments.--
            (1) Bank holding company act of 1956.--The Bank Holding 
        Company Act of 1956 (12 U.S.C. 1841 et seq.) is amended--
                    (A) in section 13 (12 U.S.C. 1851)--
                            (i) in subsection (a), by striking 
                        paragraph (2);
                            (ii) in subsection (b)(2)(B)--
                                    (I) in clause (i)(II), by striking 
                                ``, any nonbank financial company 
                                supervised by the Board''; and
                                    (II) in clause (ii), by striking 
                                ``and nonbank financial companies 
                                supervised by the Board'';
                            (iii) in subsection (c)(2)--
                                    (I) by striking ``or nonbank 
                                financial company supervised by the 
                                Board''; and
                                    (II) by striking ``or 2 years after 
                                the date on which the entity or company 
                                becomes a nonbank financial company 
                                supervised by the Board'';
                            (iv) in subsection (e)(2), by striking ``or 
                        nonbank financial company supervised by the 
                        Board'' each place such term appears;
                            (v) in subsection (g), by striking ``or 
                        nonbank financial company supervised by the 
                        Board'' each place such term appears; and
                            (vi) in subsection (h)--
                                    (I) by striking paragraph (3);
                                    (II) by redesignating paragraphs 
                                (4), (5), (6), and (7) as paragraphs 
                                (3), (4), (5), and (6), respectively; 
                                and
                                    (III) in paragraph (3), as so 
                                redesignated, by striking ``or nonbank 
                                financial company supervised by the 
                                Board'' each place such term appears;
                    (B) in section 14(a) (12 U.S.C. 1852(a))--
                            (i) in paragraph (2)--
                                    (I) by striking subparagraph (E); 
                                and
                                    (II) by redesignating subparagraph 
                                (F) as subparagraph (E); and
                            (ii) in paragraph (3)(C), by striking ``or 
                        other nonbank financial company supervised by 
                        the Board''.
            (2) Dodd-Frank wall street reform and consumer protection 
        act.--The Dodd-Frank Wall Street Reform and Consumer Protection 
        Act (Public Law 111-203) is amended--
                    (A) in the table of contents for such Act under 
                section 1(b)--
                            (i) by striking the items relating to 
                        sections 113, 114, 161, 162, 164, 167, 170, 
                        216, and 217;
                            (ii) in the item relating to section 115, 
                        by striking ``nonbank financial companies 
                        supervised by the Board of Governors and'';
                            (iii) in the item relating to subtitle C of 
                        title II, by striking ``certain nonbank 
                        financial companies and''; and
                            (iv) in the item relating to section 165, 
                        by striking ``nonbank financial companies 
                        supervised by the Board of Governors and'';
                    (B) in section 201(a) (12 U.S.C. 5381(a))--
                            (i) in paragraph (11)(B)--
                                    (I) by striking clause (ii); and
                                    (II) by redesignating clauses (iii) 
                                and (iv) as clauses (ii) and (iii), 
                                respectively;
                            (ii) by striking paragraphs (14) and (15); 
                        and
                            (iii) by redesignating paragraph (16) as 
                        paragraph (14);
                    (C) in section 210(o)(1)(A) (12 U.S.C. 
                5390(o)(1)(A)), by striking ``and any nonbank financial 
                company supervised by the Board of Governors'';
                    (D) in section 618(a)(4)(B) (12 U.S.C. 
                1850a(a)(4)(B))--
                            (i) by striking clause (i); and
                            (ii) by redesignating clauses (ii), (iii), 
                        (iv), (v), and (vi) as clauses (i), (ii), 
                        (iii), (iv), and (v), respectively;
                    (E) in section 716(i)(1) (15 U.S.C. 8305(i)(1))--
                            (i) by striking subparagraph (B);
                            (ii) by redesignating subparagraph (C) as 
                        subparagraph (B); and
                            (iii) in subparagraph (B), as so 
                        redesignated--
                                    (I) in the heading for such 
                                subparagraph, by striking ``, non-
                                systemically significant institutions 
                                not subject to heightened prudential 
                                supervision as regulated under section 
                                113'' and inserting ``swaps entities''; 
                                and
                                    (II) by striking ``, non-
                                systemically significant institutions 
                                not subject to heightened prudential 
                                supervision as regulated under section 
                                113''; and
                    (F) in section 726(a) (15 U.S.C. 8323(i)), by 
                striking ``a nonbank financial company (as defined in 
                section 102) supervised by the Board, an affiliate of 
                such a bank holding company or nonbank financial 
                company,'' and inserting ``an affiliate of such a bank 
                holding company,''; and
                    (G) in section 765(a) (15 U.S.C. 8343(a)), by 
                striking ``a nonbank financial company (as defined in 
                section 102) supervised by the Board of Governors of 
                the Federal Reserve System, affiliate of such a bank 
                holding company or nonbank financial company,'' and 
                inserting ``affiliate of such a bank holding 
                company,''.
            (3) Federal deposit insurance act.--Section 10(b)(3) of the 
        Federal Deposit Insurance Act (12 U.S.C. 1820(b)(3)) is 
        amended--
                    (A) in subparagraph (A)--
                            (i) by striking ``or nonbank financial 
                        company supervised by the Board of Governors''; 
                        and
                            (ii) by striking ``or of such nonbank 
                        financial company supervised by the Board of 
                        Governors''; and
                    (B) in subparagraph (B), by striking ``a nonbank 
                financial company supervised by the Board of Governors 
                or''.
            (4) Federal reserve act.--Section 11 of the Federal Reserve 
        Act (12 U.S.C. 248) is amended--
                    (A) by redesignating the second subsection (s), as 
                added by section 318(c) of the Dodd-Frank Wall Street 
                Reform and Consumer Protection Act, as subsection (t); 
                and
                    (B) in paragraph (2) of subsection (t), as so 
                redesignated--
                            (i) in subparagraph (A), by adding ``and'' 
                        at the end;
                            (ii) in subparagraph (B), by striking ``; 
                        and'' and inserting a period; and
                            (iii) by striking subparagraph (C);
            (5) Title 31.--Section 313(c)(1) of title 31, United States 
        Code, is amended--
                    (A) by striking subparagraph (C); and
                    (B) by redesignating subparagraphs (D), (E), (F), 
                (G), and (H) as subparagraphs (C), (D), (E), (F), and 
                (G), respectively.

SEC. 3. REPEAL OF THE PAYMENT, CLEARING, AND SETTLEMENT SUPERVISION ACT 
              OF 2010.

    Title VIII of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act (12 U.S.C. 5461 et seq.), and the item relating to that 
title in the table of contents in section 1(b) of such Act, are hereby 
repealed.
                                 <all>