[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1309 Reported in House (RH)]

<DOC>





                                                 Union Calendar No. 584
114th CONGRESS
   2d Session
                                H. R. 1309

                          [Report No. 114-752]

To amend the Dodd-Frank Wall Street Reform and Consumer Protection Act 
   to specify when bank holding companies may be subject to certain 
             enhanced supervision, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 4, 2015

Mr. Luetkemeyer (for himself, Mr. Stivers, Mr. Williams, Mr. Murphy of 
  Florida, Ms. Sewell of Alabama, Mr. David Scott of Georgia, and Ms. 
   Sinema) introduced the following bill; which was referred to the 
                    Committee on Financial Services

                           September 19, 2016

     Additional sponsors: Mr. Hill, Mr. Schweikert, Mrs. Roby, Mr. 
Farenthold, Mr. Fincher, Mr. Posey, Mr. Sessions, Mrs. Love, Mr. Byrne, 
Mr. Huizenga of Michigan, Mr. Mulvaney, Mr. Brooks of Alabama, Mr. Poe 
  of Texas, Mr. Smith of Texas, Mr. Tipton, Mr. Olson, Mr. Barr, Mr. 
    Pittenger, Mr. Curbelo of Florida, Mr. Messer, Mr. Abraham, Mr. 
Buchanan, Mr. Richmond, Mr. Harper, Mr. Vela, Mr. Hastings, Mr. Rogers 
of Alabama, Mr. Dold, Mr. Hurt of Virginia, Mr. Babin, Ms. Graham, Ms. 
 Meng, Mr. King of New York, Mr. Webster of Florida, Mr. Poliquin, Mr. 
 Fleischmann, Mr. Ross, Mr. Westmoreland, Mr. Carter of Georgia, Mrs. 
 Beatty, Mr. Cleaver, Mrs. Black, Mrs. Wagner, Ms. Wilson of Florida, 
 Mr. Blum, Mr. Pearce, Mr. Crawford, Mr. Roe of Tennessee, Mr. Peters, 
  Mr. Hultgren, Mr. Jolly, Ms. Granger, Mr. Marchant, Mr. Nugent, Mr. 
   Yoho, Mr. Bucshon, Mr. Forbes, Mr. Ratcliffe, Mr. Allen, Mr. Sam 
Johnson of Texas, Ms. Frankel of Florida, Mr. Lance, Mr. Stutzman, Mr. 
Flores, Mr. Stewart, Mr. Veasey, Mr. Chaffetz, Mr. Carter of Texas, Mr. 
  Higgins, Mr. Womack, Mr. Bishop of Utah, Ms. Jenkins of Kansas, Mr. 
  Miller of Florida, Mr. Royce, Mr. Griffith, Mr. Brady of Texas, Mr. 
Lucas, Mr. DesJarlais, Mr. Young of Iowa, Mrs. Blackburn, Mr. Rothfus, 
Mr. Smith of Missouri, Mr. Neugebauer, Mrs. Hartzler, Ms. Jackson Lee, 
 Ms. Ros-Lehtinen, Mr. Ashford, Mr. Sherman, Mr. Gene Green of Texas, 
   Mr. Long, Mr. Rooney of Florida, Mr. Jody B. Hice of Georgia, Mr. 
    Fitzpatrick, Mr. Latta, Mr. Graves of Georgia, Mr. McHenry, Mr. 
Aderholt, Mr. Emmer of Minnesota, Mr. Wenstrup, Mr. Paulsen, Mr. Graves 
 of Missouri, Mr. Chabot, Mr. Austin Scott of Georgia, Mr. Collins of 
  Georgia, Mr. Thornberry, Mr. Rokita, Mr. Crenshaw, Mr. Roskam, Mr. 
 Hanna, Mr. Wittman, Mr. Coffman, Mr. Kinzinger of Illinois, Mr. Brat, 
  Mr. Bishop of Michigan, Mr. MacArthur, Mr. Shuster, Mr. Katko, Mr. 
 Turner, Mr. Franks of Arizona, Mr. Renacci, Mr. Duffy, Mr. Culberson, 
Mr. Gosar, Mr. Loudermilk, Mr. Walberg, Mr. Amodei, Mr. Westerman, Mr. 
                        Simpson, and Mr. Cramer

                           September 19, 2016

Committed to the Committee of the Whole House on the State of the Union 
                       and ordered to be printed

_______________________________________________________________________

                                 A BILL


 
To amend the Dodd-Frank Wall Street Reform and Consumer Protection Act 
   to specify when bank holding companies may be subject to certain 
             enhanced supervision, 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 ``Systemic Risk Designation 
Improvement Act of 2015''.

SEC. 2. 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.''.

SEC. 3. 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) GSIBs designated by operation of law.--
        Notwithstanding any other provision of this subsection, a bank 
        holding company that is designated, as of the date of enactment 
        of this subsection, as a Global Systemically Important Bank by 
        the Financial Stability Board shall be deemed to have been the 
        subject of a final determination under paragraph (1).'';
            (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 and inserting a period;
                    (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''.

SEC. 4. 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).

SEC. 5. EFFECTIVE DATE; RULE OF APPLICATION.

    (a) Effective Date.--The Financial Stability Oversight Council may 
begin proceedings with respect to a bank holding company under section 
113(c)(1) of the Dodd-Frank Wall Street Reform and Consumer Protection 
Act, as added by this Act, on the date of the enactment of this Act, 
but may not make a final determination under such section 113(c)(1) 
with respect to a bank holding company before the end of the 1-year 
period beginning on the date of the enactment of this Act.
    (b) Immediate Application to Large Bank Holding Companies.--During 
the 1-year period described under subsection (a), a bank holding 
company with total consolidated assets equal to or greater than 
$50,000,000,000 shall be deemed to have been the subject of a final 
determination under section 113(c)(1) of the Dodd-Frank Wall Street 
Reform and Consumer Protection Act.
                                                 Union Calendar No. 584

114th CONGRESS

   2d Session

                               H. R. 1309

                          [Report No. 114-752]

_______________________________________________________________________

                                 A BILL

To amend the Dodd-Frank Wall Street Reform and Consumer Protection Act 
   to specify when bank holding companies may be subject to certain 
             enhanced supervision, and for other purposes.

_______________________________________________________________________

                           September 19, 2016

Committed to the Committee of the Whole House on the State of the Union 
                       and ordered to be printed