[House Report 119-364]
[From the U.S. Government Publishing Office]


119th Congress    }                                     {       Report
                        HOUSE OF REPRESENTATIVES
 1st Session      }                                     {      119-364

======================================================================



 
     FINANCIAL STABILITY OVERSIGHT COUNCIL IMPROVEMENT ACT OF 2025

                                _______
                                

November 4, 2025.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

    Mr. Hill of Arkansas, from the Committee on Financial Services, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 3682]

    The Committee on Financial Services, to whom was referred 
the bill (H.R. 3682) to amend the Financial Stability Act of 
2010 to require the Financial Stability Oversight Council to 
consider alternative approaches before determining that a U.S. 
nonbank financial company shall be supervised by the Board of 
Governors of the Federal Reserve System, and for other 
purposes, having considered the same, reports favorably thereon 
with an amendment and recommends that the bill as amended do 
pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     2
Background and Need for Legislation..............................     2
Committee Consideration..........................................     3
Related Hearings.................................................     4
Committee Votes..................................................     4
Committee Oversight Findings.....................................     6
Performance Goals and Objectives.................................     6
Committee Cost Estimate..........................................     6
New Budget Authority and CBO Cost Estimate.......................     6
Unfunded Mandates Statement......................................     6
Earmark Statement................................................     6
Federal Advisory Committee Act Statement.........................     7
Applicability to the Legislative Branch..........................     7
Duplication of Federal Programs..................................     7
Section-by-Section Analysis of the Legislation...................     7
Changes in Existing Law Made by the Bill, as Reported............     7

    The amendment is as follows:
    Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Financial Stability Oversight Council 
Improvement Act of 2025''.

SEC. 2. FINANCIAL STABILITY OVERSIGHT COUNCIL.

  Section 113 of the Financial Stability Act of 2010 (12 U.S.C. 5323) 
is amended--
          (1) in subsection (a)--
                  (A) in paragraph (1), by striking ``The Council'' and 
                inserting ``Subject to paragraph (3), the Council''; 
                and
                  (B) by adding at the end the following:
          ``(3) Initial determination.--The Council may not vote on a 
        proposed determination with respect to a U.S. nonbank financial 
        company under paragraph (1) unless the Council first 
        determines, in consultation with the company and the primary 
        financial regulatory agency with respect to the company, that a 
        different action by the Council or the agency (including the 
        application of new or heightened standards and safeguards under 
        section 120), or by the company under a written plan that is 
        submitted promptly to the Council, is impracticable or 
        insufficient to mitigate the threat that material financial 
        distress at the company, or the nature, scope, size, scale, 
        concentration, interconnectedness, or mix of the activities of 
        the company, could pose to the financial stability of the 
        United States.''; and
          (2) in subsection (f)(1), by striking ``subsection (e)'' and 
        inserting ``subsections (a)(3) and (e)''.

                          Purpose and Summary

    H.R. 3682, the Financial Stability Oversight Council 
Improvement Act of 2025, was introduced on June 3, 2025, by 
Democratic Representative Bill Foster (IL-11). H.R. 3682 
requires the Financial Stability Oversight Council (FSOC), 
before voting to designate a U.S. nonbank financial company for 
Federal Reserve supervision, to first consult with the company 
and its primary regulator and determine that alternative 
actions, including new or heightened standards or a written 
mitigation plan, are impracticable or insufficient to address 
risks to U.S. financial stability. The Council may not vote on 
a proposed designation unless this determination is made.

                  Background and Need for Legislation

    Established under Title I of the Dodd-Frank Act, FSOC was 
created to identify systemic risks and coordinate the Federal 
Government's response to emerging threats. In practice, 
however, FSOC has evolved into a vehicle for administration-
dependent regulatory action rather than a neutral interagency 
forum. Its structure makes objective oversight unlikely--
particularly given the political nature of the Treasury 
Secretary's role as Chair--and the reluctance of agency heads 
to critique executive policy failures.
    FSOC's credibility suffered early missteps. In 2014, it 
designated MetLife as a systemically important financial 
institution (SIFI), subjecting it to enhanced supervision by 
the Federal Reserve Board (FRB). A Federal court overturned the 
designation, calling the process ``arbitrary and capricious.'' 
FSOC later rescinded similar designations for Prudential and GE 
Capital, tacitly acknowledging they pose no meaningful systemic 
threat. In 2019, the Trump Administration overhauled the 
process and shifted to an activities-based approach, 
emphasizing coordination with primary regulators, requiring 
cost-benefit analysis, and limiting entity-based designations 
to a last resort. These reforms increased transparency and 
curbed regulatory overreach. In November of 2023, the Biden 
Administration released interpretive guidance reinstating 
FSOC's entity-specific designation approach, while also 
expanding FSOC's discretion to designate nonbank financial 
companies--without requiring an evaluation of alternatives to 
designation or conducting even basic cost-benefit analysis. 
H.R. 3682 establishes essential safeguards around the non-bank 
designation process, requiring FSOC to follow a careful and 
transparent procedure, including a thorough assessment of 
alternatives, before placing a firm under FRB oversight.

                        Committee Consideration


                             119TH CONGRESS

    On June 3, 2025, Representative Foster introduced H.R. 
3682, the Financial Stability Oversight Council Improvement Act 
of 2025, with Representative Bill Huizenga (R-MI) as original 
cosponsor. Representatives Josh Gottheimer (D-NJ), Young Kim 
(R-CA), Brad Sherman (D-CA), Brittany Pettersen (D-CO), Ritchie 
Torres (D-NY), Frank Lucas (R-OK), Dan Meuser (R-PA), Emanuel 
Cleaver (D-MO), Chrissy Houlahan (D-PA), David Scott (D-GA), 
Brad Schneider (D-IL), Vicente Gonzalez (D-TX), Ann Wagner (R-
MO), Janelle Bynum (D-OR), Troy Downing (R-MT), Monica De La 
Cruz (R-TX), Mike Lawler (R-NY), Jim Himes (D-CT), and Zach 
Nunn (R-IA) were added subsequently as cosponsors.
    This bill was attached to the July 15, 2025 hearing titled, 
``Dodd-Frank Turns 15: Lessons Learned and the Road Ahead.''
    On September 16, 2025, the Committee on Financial Services 
met in open session to consider, among others, H.R. 3682. The 
Committee ordered H.R. 3682, as amended, to be favorably 
reported to the House of Representatives.

                             118TH CONGRESS

    On June 5, 2023, Representative Foster introduced H.R. 
3812, the Financial Stability Oversight Council Improvement Act 
of 2023, with Representative Huizenga as original cosponsor. 
Representative Gottheimer was added subsequently as a 
cosponsor. This bill is an earlier iteration of H.R. 3682. The 
bill was referred solely to the Committee on Financial 
Services.
    On February 8, 2023, the Subcommittee on Financial 
Institutions of the Committee on Financial Services held a 
hearing titled ``Revamping and Revitalizing Banking in the 21st 
Century.'' A draft version of the bill was attached to the 
hearing. There was no further action on H.R. 3812 in the 118th 
Congress.

                             117TH CONGRESS

    On June 15, 2021, Representative Foster introduced H.R. 
3899, the Financial Stability Oversight Council Improvement Act 
of 2021, with Representatives Huizenga, Trey Hollingsworth (R-
IN), and Ed Perlmutter (D-CO) as original cosponsors. This bill 
is an earlier iteration of H.R. 3682. The bill was referred 
solely to the Committee on Financial Services. There was no 
further action on H.R. 3899 in the 117th Congress.

                             116TH CONGRESS

    On June 27, 2019, Representative Foster introduced H.R. 
3561, the Financial Stability Oversight Council Improvement Act 
of 2019, with Representatives Huizenga, Hollingsworth, and Ben 
McAdams (D-UT) as original cosponsors. Representatives 
Perlmutter, Scott Tipton (R-CO), Terri Sewell (D-AL), Wagner, 
Gottheimer, Ted Budd (R-NC), Scott, Barry Loudermilk (R-GA), 
Madeleine Dean (D-PA), Andy Barr (R-KY), Cynthia Axne (D-IA), 
Gonzalez, Himes, Tom Graves (R-GA), Alexander Mooney (R-WV), 
Sean Duffy (R-WI), Sherman, Sean Maloney (D-NY), Suzan DelBene 
(D-WA), Brendan Boyle (D-PA), Blaine Luetkemeyer (R-MO), Bill 
Posey (R-FL), Denver Riggleman (R-VA), Anthony Gonzalez (R-OH), 
Houlahan, Kathleen Rice (D-NY), Roger Williams (R-TX), French 
Hill (R-AR), Ron Kind (D-WI), Scott Peters (D-CA), Ann Kuster 
(D-NH), Tom Emmer (R-MN), Jennifer Wexton (D-VA), and Lucas 
were added subsequently as cosponsors. This bill is an earlier 
iteration of H.R. 3682. The bill was referred solely to the 
Committee on Financial Services. There was no further action on 
H.R. 3561 in the 116th Congress.

                            Related Hearings

    Pursuant to clause 3(c)(6) of rule XIII of the Rules of the 
House of Representatives, the following hearing was used to 
develop H.R. 3682:
    The Subcommittee on Financial Institutions held a July 15, 
2025, hearing titled, ``Dodd-Frank Turns 15: Lessons Learned 
and the Road Ahead.'' H.R. 3682 was noticed for legislative 
consideration in the hearing. The subcommittee heard testimony 
from the following witnesses: The Honorable Ken Bentsen, 
President and CEO, Securities Industry and Financial Markets 
Association; Mrs. Lindsey Johnson, President and CEO, Consumer 
Bankers Association; Mr. Tom Quaadman, Chief of Government 
Affairs and Public Policy, Investment Company Institute; Dr. 
Paul H. Kupiec, Senior Fellow, American Enterprise Institute; 
and Mr. Dennis Kelleher, Co-founder, President, and Chief 
Executive Officer, Better Markets.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee Report to include record 
votes on the motion to report legislation and amendments 
thereto.
    On September 16, 2025, the Committee ordered H.R. 3682, as 
amended, to be reported favorably to the House by a recorded 
vote of 47 yeas and 4 nays, a quorum being present. (Record 
Vote No. FC-198). Before the question to report was called, 
Representative Foster offered an amendment in the nature of a 
substitute, designated FOSTER_053, which made technical 
changes. The amendment was adopted by voice vote.

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

                      Committee Oversight Findings

    Pursuant to clause 3(c) of rule XIII of the Rules of the 
House of Representatives, the findings and recommendations of 
the Committee, based on oversight activities under clause 
2(b)(1) of rule X of the Rules of the House of Representatives 
are incorporated in the descriptive portions of this report.

                    Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the goal of H.R. 3682 is to establish 
safeguards around the non-bank designation process, requiring 
FSOC to follow a transparent procedure, including a thorough 
assessment of alternatives, before placing a firm under FRB 
oversight.

                        Committee Cost Estimate

    Clause 3(d)(1) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison of the 
costs that would be incurred in carrying out H.R. 3682. The 
Committee has requested but not received a cost estimate from 
the Director of the Congressional Budget Office. However, 
pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee will adopt as its own 
the cost estimate by the Director of the Congressional Budget 
Office once it has been prepared.

               New Budget Authority and CBO Cost Estimate

    With respect to the requirements of clause 3(c)(2) of rule 
XIII of the Rules of the House of Representatives and section 
308(a) of the Congressional Budget Act of 1974 and with respect 
to requirements of clause 3(c)(3) of rule XIII of the Rules of 
the House of Representatives and section 402 of the 
Congressional Budget Act of 1974, the Committee will adopt as 
its own the cost estimate for the bill prepared by the Director 
of the Congressional Budget Office. However, a cost estimate 
was not made available to the Committee in time for the filing 
of this report. The Chairman of the Committee shall cause such 
estimate to be printed in the Congressional Record upon its 
receipt by the Committee.

                      Unfunded Mandates Statement

    The Committee has requested but not received from the 
Director of the Congressional Budget Office an estimate of the 
Federal mandates pursuant to section 423 of the Unfunded 
Mandates Reform Act. The Chairman of the Committee shall cause 
such estimate to be printed in the Congressional Record upon 
its receipt by the Committee.

                           Earmark Statement

    In compliance with clause 9 of rule XXI of the Rules of the 
House of Representatives, this bill, as reported, contains no 
congressional earmarks, limited tax benefits, or limited tariff 
benefits as defined in clause 9(e), 9(f), or 9(g) of rule XXI.

                Federal Advisory Committee Act Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                Applicability to the Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

                    Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII of the Rules of the 
House of Representatives, the Committee states that no 
provision of the bill establishes or reauthorizes a program of 
the Federal Government known to be duplicative of another 
Federal program, including any program that was included in a 
report to Congress pursuant to section 21 of the Public Law 
111-139 or the most recent Catalog of Federal Domestic 
Assistance.

             Section-by-Section Analysis of the Legislation


Section 1. Short title

    Section 1 provides the short title is the ``Financial 
Stability Oversight Council Improvement Act of 2025''.

Section 2. Financial Stability Oversight Council

    Section 2 prohibits the FSOC from voting on a proposed 
determination with respect to a U.S. nonbank financial company 
unless the Council determines, in consultation with the company 
and its primary regulator, that a different course of action by 
the Council or agency, or by the company under a written plan, 
is impracticable or insufficient to mitigate the threat that 
material financial distress at the company could pose to U.S. 
financial stability.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

                    FINANCIAL STABILITY ACT OF 2010


TITLE I--FINANCIAL STABILITY

           *       *       *       *       *       *       *


Subtitle A--Financial Stability Oversight Council

           *       *       *       *       *       *       *


SEC. 113. AUTHORITY TO REQUIRE SUPERVISION AND REGULATION OF CERTAIN 
                    NONBANK FINANCIAL COMPANIES.

  (a) U.S. Nonbank Financial Companies Supervised by the Board 
of Governors.--
          (1) Determination.--[The Council] Subject to 
        paragraph (3), 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 U.S. nonbank 
        financial company shall be supervised by the Board of 
        Governors and shall be subject to prudential standards, 
        in accordance with this title, if the Council 
        determines that material financial distress at the U.S. 
        nonbank financial company, or the nature, scope, size, 
        scale, concentration, interconnectedness, or mix of the 
        activities of the U.S. nonbank financial 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 consider--
                  (A) the extent of the leverage of the 
                company;
                  (B) the extent and nature of the off-balance-
                sheet exposures of the company;
                  (C) the extent and nature of the transactions 
                and relationships of the company with other 
                significant nonbank financial companies and 
                significant bank holding companies;
                  (D) the importance of the company as a source 
                of credit for households, businesses, and State 
                and local governments and as a source of 
                liquidity for the United States financial 
                system;
                  (E) the importance of the company as a source 
                of credit for low-income, minority, or 
                underserved communities, and the impact that 
                the failure of such company would have on the 
                availability of credit in such communities;
                  (F) the extent to which assets are managed 
                rather than owned by the company, and the 
                extent to which ownership of assets under 
                management is diffuse;
                  (G) the nature, scope, size, scale, 
                concentration, interconnectedness, and mix of 
                the activities of the company;
                  (H) the degree to which the company is 
                already regulated by 1 or more primary 
                financial regulatory agencies;
                  (I) the amount and nature of the financial 
                assets of the company;
                  (J) the amount and types of the liabilities 
                of the company, including the degree of 
                reliance on short-term funding; and
                  (K) any other risk-related factors that the 
                Council deems appropriate.
          (3) Initial determination.--The Council may not vote 
        on a proposed determination with respect to a U.S. 
        nonbank financial company under paragraph (1) unless 
        the Council first determines, in consultation with the 
        company and the primary financial regulatory agency 
        with respect to the company, that a different action by 
        the Council or the agency (including the application of 
        new or heightened standards and safeguards under 
        section 120), or by the company under a written plan 
        that is submitted promptly to the Council, is 
        impracticable or insufficient to mitigate the threat 
        that material financial distress at the company, or the 
        nature, scope, size, scale, concentration, 
        interconnectedness, or mix of the activities of the 
        company, could pose to the financial stability of the 
        United States.
  (b) Foreign Nonbank Financial Companies Supervised by the 
Board of Governors.--
          (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 foreign 
        nonbank financial company shall be supervised by the 
        Board of Governors and shall be subject to prudential 
        standards, in accordance with this title, if the 
        Council determines that material financial distress at 
        the foreign nonbank financial company, or the nature, 
        scope, size, scale, concentration, interconnectedness, 
        or mix of the activities of the foreign nonbank 
        financial 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 consider--
                  (A) the extent of the leverage of the 
                company;
                  (B) the extent and nature of the United 
                States related off-balance-sheet exposures of 
                the company;
                  (C) the extent and nature of the transactions 
                and relationships of the company with other 
                significant nonbank financial companies and 
                significant bank holding companies;
                  (D) the importance of the company as a source 
                of credit for United States households, 
                businesses, and State and local governments and 
                as a source of liquidity for the United States 
                financial system;
                  (E) the importance of the company as a source 
                of credit for low-income, minority, or 
                underserved communities in the United States, 
                and the impact that the failure of such company 
                would have on the availability of credit in 
                such communities;
                  (F) the extent to which assets are managed 
                rather than owned by the company and the extent 
                to which ownership of assets under management 
                is diffuse;
                  (G) the nature, scope, size, scale, 
                concentration, interconnectedness, and mix of 
                the activities of the company;
                  (H) the extent to which the company is 
                subject to prudential standards on a 
                consolidated basis in its home country that are 
                administered and enforced by a comparable 
                foreign supervisory authority;
                  (I) the amount and nature of the United 
                States financial assets of the company;
                  (J) the amount and nature of the liabilities 
                of the company used to fund activities and 
                operations in the United States, including the 
                degree of reliance on short-term funding; and
                  (K) any other risk-related factors that the 
                Council deems appropriate.
  (c) Antievasion.--
          (1) Determinations.--In order to avoid evasion of 
        this title, the Council, on its own initiative or at 
        the request of the Board of Governors, may determine, 
        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, that--
                  (A) material financial distress related to, 
                or the nature, scope, size, scale, 
                concentration, interconnectedness, or mix of, 
                the financial activities conducted directly or 
                indirectly by a company incorporated or 
                organized under the laws of the United States 
                or any State or the financial activities in the 
                United States of a company incorporated or 
                organized in a country other than the United 
                States would pose a threat to the financial 
                stability of the United States, based on 
                consideration of the factors in subsection 
                (a)(2) or (b)(2), as applicable;
                  (B) the company is organized or operates in 
                such a manner as to evade the application of 
                this title; and
                  (C) such financial activities of the company 
                shall be supervised by the Board of Governors 
                and subject to prudential standards in 
                accordance with this title, consistent with 
                paragraph (3).
          (2) Report.--Upon making a determination under 
        paragraph (1), the Council shall submit a report to the 
        appropriate committees of Congress detailing the 
        reasons for making such determination.
          (3) Consolidated supervision of only financial 
        activities; establishment of an intermediate holding 
        company.--
                  (A) Establishment of an intermediate holding 
                company.--Upon a determination under paragraph 
                (1), the company that is the subject of the 
                determination may establish an intermediate 
                holding company in which the financial 
                activities of such company and its subsidiaries 
                shall be conducted (other than the activities 
                described in section 167(b)(2)) in compliance 
                with any regulations or guidance provided by 
                the Board of Governors. Such intermediate 
                holding company shall be subject to the 
                supervision of the Board of Governors and to 
                prudential standards under this title as if the 
                intermediate holding company were a nonbank 
                financial company supervised by the Board of 
                Governors.
                  (B) Action of the board of governors.--To 
                facilitate the supervision of the financial 
                activities subject to the determination in 
                paragraph (1), the Board of Governors may 
                require a company to establish an intermediate 
                holding company, as provided for in section 
                167, which would be subject to the supervision 
                of the Board of Governors and to prudential 
                standards under this title, as if the 
                intermediate holding company were a nonbank 
                financial company supervised by the Board of 
                Governors.
          (4) Notice and opportunity for hearing and final 
        determination; judicial review.--Subsections (d) 
        through (h) shall apply to determinations made by the 
        Council pursuant to paragraph (1) in the same manner as 
        such subsections apply to nonbank financial companies.
          (5) Covered financial activities.--For purposes of 
        this subsection, the term ``financial activities''--
                  (A) means activities that are financial in 
                nature (as defined in section 4(k) of the Bank 
                Holding Company Act of 1956);
                  (B) includes the ownership or control of one 
                or more insured depository institutions; and
                  (C) does not include internal financial 
                activities conducted for the company or any 
                affiliate thereof, including internal treasury, 
                investment, and employee benefit functions.
          (6) Only financial activities subject to prudential 
        supervision.--Nonfinancial activities of the company 
        shall not be subject to supervision by the Board of 
        Governors and prudential standards of the Board. For 
        purposes of this Act, the financial activities that are 
        the subject of the determination in paragraph (1) shall 
        be subject to the same requirements as a nonbank 
        financial company supervised by the Board of Governors. 
        Nothing in this paragraph shall prohibit or limit the 
        authority of the Board of Governors to apply prudential 
        standards under this title to the financial activities 
        that are subject to the determination in paragraph (1).
  (d) Reevaluation and Rescission.--The Council shall--
          (1) not less frequently than annually, reevaluate 
        each determination made under subsections (a) and (b) 
        with respect to such nonbank financial company 
        supervised by the Board of Governors; and
          (2) rescind any such determination, if the Council, 
        by a vote of not fewer than \2/3\ of the voting members 
        then serving, including an affirmative vote by the 
        Chairperson, determines that the nonbank financial 
        company no longer meets the standards under subsection 
        (a) or (b), as applicable.
  (e) Notice and Opportunity for Hearing and Final 
Determination.--
          (1) In general.--The Council shall provide to a 
        nonbank financial company written notice of a proposed 
        determination of the Council, including an explanation 
        of the basis of the proposed determination of the 
        Council, that a nonbank financial company shall be 
        supervised by the Board of Governors and shall be 
        subject to prudential standards in accordance with this 
        title.
          (2) Hearing.--Not later than 30 days after the date 
        of receipt of any notice of a proposed determination 
        under paragraph (1), the nonbank financial company may 
        request, in writing, an opportunity for a written or 
        oral hearing before the Council to contest the proposed 
        determination. Upon receipt of a timely request, the 
        Council shall fix a time (not later than 30 days after 
        the date of receipt of the request) and place at which 
        such company may appear, personally or through counsel, 
        to submit written materials (or, at the sole discretion 
        of the Council, oral testimony and oral argument).
          (3) Final determination.--Not later than 60 days 
        after the date of a hearing under paragraph (2), the 
        Council shall notify the nonbank financial company of 
        the final determination of the Council, which shall 
        contain a statement of the basis for the decision of 
        the Council.
          (4) No hearing requested.--If a nonbank financial 
        company does not make a timely request for a hearing, 
        the Council shall notify the nonbank financial company, 
        in writing, of the final determination of the Council 
        under subsection (a) or (b), as applicable, not later 
        than 10 days after the date by which the company may 
        request a hearing under paragraph (2).
  (f) Emergency Exception.--
          (1) In general.--The Council may waive or modify the 
        requirements of [subsection (e)] subsections (a)(3) and 
        (e) with respect to a nonbank financial company, if the 
        Council determines, by a vote of not fewer than \2/3\ 
        of the voting members then serving, including an 
        affirmative vote by the Chairperson, that such waiver 
        or modification is necessary or appropriate to prevent 
        or mitigate threats posed by the nonbank financial 
        company to the financial stability of the United 
        States.
          (2) Notice.--The Council shall provide notice of a 
        waiver or modification under this subsection to the 
        nonbank financial company concerned as soon as 
        practicable, but not later than 24 hours after the 
        waiver or modification is granted.
          (3) International coordination.--In making a 
        determination under paragraph (1), the Council shall 
        consult with the appropriate home country supervisor, 
        if any, of the foreign nonbank financial company that 
        is being considered for such a determination.
          (4) Opportunity for hearing.--The Council shall allow 
        a nonbank financial company to request, in writing, an 
        opportunity for a written or oral hearing before the 
        Council to contest a waiver or modification under this 
        subsection, not later than 10 days after the date of 
        receipt of notice of the waiver or modification by the 
        company. Upon receipt of a timely request, the Council 
        shall fix a time (not later than 15 days after the date 
        of receipt of the request) and place at which the 
        nonbank financial company may appear, personally or 
        through counsel, to submit written materials (or, at 
        the sole discretion of the Council, oral testimony and 
        oral argument).
          (5) Notice of final determination.--Not later than 30 
        days after the date of any hearing under paragraph (4), 
        the Council shall notify the subject nonbank financial 
        company of the final determination of the Council under 
        this subsection, which shall contain a statement of the 
        basis for the decision of the Council.
  (g) Consultation.--The Council shall consult with the primary 
financial regulatory agency, if any, for each nonbank financial 
company or subsidiary of a nonbank financial company that is 
being considered for supervision by the Board of Governors 
under this section before the Council makes any final 
determination with respect to such nonbank financial company 
under subsection (a), (b), or (c).
  (h) Judicial Review.--If the Council makes a final 
determination under this section with respect to a nonbank 
financial company, such nonbank financial company may, not 
later than 30 days after the date of receipt of the notice of 
final determination under subsection (d)(2), (e)(3), or (f)(5), 
bring an action in the United States district court for the 
judicial district in which the home office of such nonbank 
financial company is located, or in the United States District 
Court for the District of Columbia, for an order requiring that 
the final determination be rescinded, and the court shall, upon 
review, dismiss such action or direct the final determination 
to be rescinded. Review of such an action shall be limited to 
whether the final determination made under this section was 
arbitrary and capricious.
  (i) International Coordination.--In exercising its duties 
under this title with respect to foreign nonbank financial 
companies, foreign-based bank holding companies, and cross-
border activities and markets, the Council shall consult with 
appropriate foreign regulatory authorities, to the extent 
appropriate.

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