[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 3500 Introduced in Senate (IS)]

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114th CONGRESS
  2d Session
                                S. 3500

 To require the appropriate Federal banking agencies to treat certain 
non-significant investments in the capital of unconsolidated financial 
institutions as qualifying capital instruments, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            December 5, 2016

Mr. Wicker (for himself and Mr. Cochran) introduced the following bill; 
which was read twice and referred to the Committee on Banking, Housing, 
                           and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
 To require the appropriate Federal banking agencies to treat certain 
non-significant investments in the capital of unconsolidated financial 
institutions as qualifying capital instruments, 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. TREATMENT OF CERTAIN NON-SIGNIFICANT INVESTMENTS IN THE 
              CAPITAL OF UNCONSOLIDATED FINANCIAL INSTITUTIONS.

    (a) In General.--Section 18 of the Federal Deposit Insurance Act 
(12 U.S.C. 1828) is amended--
            (1) by moving subsection (z) so that it appears after 
        subsection (y); and
            (2) by adding at the end the following:
    ``(aa) Treatment of Non-Significant Investments in the Capital of 
Unconsolidated Financial Institutions.--For purposes of the final rules 
titled `Regulatory Capital Rules: Regulatory Capital, Implementation of 
Basel III, Capital Adequacy, Transition Provisions, Prompt Corrective 
Action, Standardized Approach for Risk-Weighted Assets, Market 
Discipline and Disclosure Requirements, Advanced Approaches Risk-Based 
Capital Rule, and Market Risk Capital Rule' (78 Fed. Reg. 62018; 
published Oct. 11, 2013 and 79 Fed. Reg. 20754; published April 14, 
2014) (the `Final Rules') and any other regulation which incorporates a 
definition of the term `non-significant investments in the capital of 
unconsolidated financial institutions', the appropriate Federal banking 
agencies shall provide that a bank's or a savings association's 
investments in Trust Preferred Securities (pooled and individual 
instruments) shall not be subject to deduction from such institution's 
regulatory capital, provided such instruments were held as investments 
prior to July 21, 2010.''.
    (b) Amendment to Basel III Capital Regulations.--Not later than the 
end of the 3-month period beginning on the date of the enactment of 
this Act, the Federal Deposit Insurance Corporation, the Board of 
Governors of the Federal Reserve System, and the Comptroller of the 
Currency shall amend the final rules titled ``Regulatory Capital Rules: 
Regulatory Capital, Implementation of Basel III, Capital Adequacy, 
Transition Provisions, Prompt Corrective Action, Standardized Approach 
for Risk-Weighted Assets, Market Discipline and Disclosure 
Requirements, Advanced Approaches Risk-Based Capital Rule, and Market 
Risk Capital Rule'' (78 Fed. Reg. 62018; published Oct. 11, 2013 and 79 
Fed. Reg. 20754; published April 14, 2014) to implement the amendments 
made by this Act.
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