[Congressional Record Volume 164, Number 40 (Wednesday, March 7, 2018)]
[Senate]
[Page S1484]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 2114. Mr. SANDERS submitted an amendment intended to be proposed
by him to the bill S. 2155, to promote economic growth, provide
tailored regulatory relief, and enhance consumer protections, and for
other purposes; which was ordered to lie on the table; as follows:
At the appropriate place, insert the following:
SEC. ___. TOO BIG TO FAIL, TOO BIG TO EXIST.
(a) Definitions.--In this section--
(1) the term ``covered entity'' means a financial
institution, as defined in section 803 of the Payment,
Clearing, and Settlement Supervision Act of 2010 (12 U.S.C.
5462); and
(2) the term ``gross domestic product'' means gross
domestic product as calculated by the Bureau of Economic
Analysis.
(b) Total Exposure.--
(1) Total exposure.--
(A) In general.--On February 1 of each year, no covered
entity may have a total exposure, as reported by the covered
entity on Form FR Y-15 for the previous year, equal to or
greater than 2 percent of the gross domestic product of the
United States for the previous calendar year.
(B) Other reporting.--If a covered entity is not required
to complete a Form FR Y-15, the Financial Stability Oversight
Council shall design and assign a reporting form as
appropriate for each covered entity with total assets greater
than $50,000,000,000 that reflects the total risk exposures
of the financial institution, including off-balance sheet
exposures within 18 months of the date of enactment of this
Act. Once designated a reporting form, no covered entity may
have a total exposure, as reported by the covered entity for
the previous year, equal to or greater than 2 percent of the
gross domestic product of the United States for the previous
calendar year.
(2) Restructuring.--Any covered entity that violates
paragraph (1) shall be designated as a ``Too Big to Exist
Institution'' by the Financial Stability Oversight Council.
The Vice Chair for Supervision of the Board of Governors of
the Federal Reserve System shall require and supervise a
``Too Big to Exist Institution'' to restructure to comply
with paragraph (1) not later than 2 years after the date on
which the violation arises.
(c) Prohibition Against Use of Federal Reserve Financing.--
Notwithstanding any other provision of law (including
regulations), any ``Too Big to Exist Institution'' may not
use or otherwise have access to advances from any Federal
Reserve credit facility, the Federal Reserve discount window,
or any other program or facility made available under the
Federal Reserve Act (12 U.S.C. 221 et seq.), including any
asset purchases, temporary or bridge loans, government
investments in debt or equity, or capital injections from any
Federal institution.
(d) Prohibition on Use of Insured Deposits.--
(1) In general.--Any ``Too Big to Exist Institution'' that
is an insured depository institution, or owns such an
institution, may not use any insured deposit amounts to
fund--
(A) any activity relating to hedging that is not directly
related to commercial banking activity at the insured bank;
(B) any use of derivatives for speculative purposes;
(C) any activity related to the dealing of derivatives; or
(D) any other form of speculative activity that regulators
specify.
(2) Risk of loss.--A ``Too Big to Exist Institution'' not
conduct any activity listed in paragraph (1) in such a manner
that--
(A) puts insured deposits at risk; or
(B) creates a risk of loss to the Deposit Insurance Fund.
(e) Report; Testimony.--The Vice Chair for Supervision of
the Board of Governors of the Federal Reserve System and the
Chair of the Financial Stability Oversight Council shall
annually testify before the Committee on Banking, Housing,
and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives and submit
to those committees an annual report the restructuring and
designation under subsection (b)(2).
(f) Effective Date.--Subsections (c) and (d) shall apply to
a covered entity 90 days after the date on which a covered
entity is designated as a ``Too Big to Exist Institution''.
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