Terminating the Expansion of Too-Big-To-Fail Act of 2012 - Amends the Financial Stability Act of 2010, title I of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank), the Federal Deposit Insurance Act, and the Federal Reserve Act to eliminate all supervision by the Board of Governors of the Federal Reserve System (Board) of domestic and foreign nonbank financial companies, including new or heightened standards and safeguards and minimum leverage capital requirements.
Eliminates the duty of the Financial Stability Oversight Council to identify systemically important financial market utilities and payment, clearing, and settlement activities.
Repeals the authority of the Council, acting through the Office of Financial Research, to: (1) require the submission of periodic and other reports from any domestic or foreign nonbank financial company, or (2) request the Board to examine a U.S. nonbank financial company for the sole purpose of determining whether it should be Board-supervised.
Repeals specified additional Board authority to supervise certain nonbank financial companies, including the prohibition against management interlocks between such companies and certain other financial companies.
Repeals the requirement that the Board study and report to Congress on: (1) specified issues with respect to the resolution of financial companies under chapter 7 (Liquidation) or 11 (Reorganization) of the Bankruptcy Code, and (2) international coordination relating to the resolution of systemic financial companies under the U.S. Bankruptcy Code and applicable foreign law.
Repeals the authority of the Council to recommend to the Board: (1) prudential standards and reporting and disclosure requirements for Board-supervised nonbank financial companies, and (2) any requirement that each nonbank financial company report periodically the company's credit exposure as well as its plan for rapid and orderly resolution in the event of material financial distress or failure.
Repeals the requirement that the Council study the feasibility, benefits, costs, and structure of a contingent capital requirement for Board-supervised nonbank financial companies.
Eliminates reporting requirements for such companies.
Repeals the Payment, Clearing, and Settlement Supervision Act of 2010 (title VIII of Dodd-Frank).
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6317 Introduced in House (IH)]
112th CONGRESS
2d Session
H. R. 6317
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 HOUSE OF REPRESENTATIVES
August 2, 2012
Mr. Garrett introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
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>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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