S.Amdt. 3787

SA 3787. Mr. BROWN of Ohio (for himself and Mr. Kaufman) submitted an
amendment intended to be proposed to amendment SA 3739 proposed by Mr.
Reid (for Mr. Dodd (for himself and Mrs. Lincoln)) to the bill S. 3217,
to promote the financial stability of the United States by improving
accountability and transparency in the financial system, to end ``too
big to fail'', to protect the American taxpayer by ending bailouts, to
protect consumers from abusive financial services practices, and for
other purposes; which was ordered to lie on the table; as follows:

On page 497, strike line 9 and all that follows through
page 500, line 15, and insert the following:

SEC. 620. CONCENTRATION LIMITS FOR BANK HOLDING COMPANIES AND
FINANCIAL COMPANIES.

(a) Deposit Concentration Limit.--
(1) Amendment.--Section 3 of the Bank Holding Company Act
of 1956 (12 U.S.C. 1842) is amended by striking subsection
(f) and inserting the following:
``(f) Nationwide Concentration Limits.--
``(1) Concentration limit established.--No single bank
holding company may control more than 10 percent of the total
amount of deposits of all insured depository institutions in
the United States.
``(2) Sale or transfer required.--The Board shall require
any bank holding company that the Board determines is in
violation of paragraph (1) to sell or otherwise transfer
assets to an unaffiliated company, to the extent that the
Board determines is necessary to bring the company into
compliance with paragraph (1).''.
(2) Effective date.--The amendment made by this subsection
shall take effect 1 year after the date of enactment of this
Act.
(b) Size Requirements for Bank Holding Companies and
Financial Companies.--
(1) Amendment.--The Bank Holding Company Act of 1956 (12
U.S.C. 1841 et seq.) is amended by adding at the end the
following:

``SEC. 13. LIMITS ON NONDEPOSIT LIABILITIES FOR BANK HOLDING
COMPANIES AND FINANCIAL COMPANIES.

``(a) Definitions.--In this section, the following
definitions shall apply:
``(1) FDIC-assessed deposits.--The term `FDIC-assessed
deposits' means the assessment base of a bank holding
company, as calculated under part 327 of title 12 Code of
Federal Regulations, or any successor thereto.
``(2) Financial company.--The term `financial company'
means any nonbank financial company supervised by the Board.
``(3) Nonbank financial company definitions.--The terms
`foreign nonbank financial company', `nonbank financial
company', and `U.S. nonbank financial company' have the same
meanings as in section 102 of the Restoring American
Financial Stability Act of 2010.
``(4) Non-deposit liabilities.--The term `non-deposit
liabilities' means--
``(A) with respect to a bank holding company--
``(i) the total assets of the banking holding company;
minus
``(ii) the sum of--

``(I) the tier 1 capital of the bank holding company,
taking into account any off-balance-sheet liabilities; and
``(II) the FDIC-assessed deposits of the bank holding
company; and

``(B) with respect to a financial company--
``(i) the total assets of the financial company; minus
``(ii) the tier 1 capital of the financial company, taking
into account any off-balance-sheet liabilities.
``(5) Incorporated terms.--The terms `average total
consolidated assets' and `tier 1 capital' have the meanings
given those terms in part 225 of title 12, Code of Federal
Regulations, or any successor thereto.
``(b) Limit on Nondeposit Liabilities for Bank Holding
Companies.--
``(1) Limits for bank holding companies.--No bank holding
company may control nondeposit liabilities that exceed 2
percent of the annual gross domestic product of the United
States.
``(2) Limits for financial companies.--No financial company
may control nondeposit liabilities that exceed 3 percent of
the annual gross domestic product of the United States.
``(3) Determination of gross domestic product.--For
purposes of this subsection, the annual gross domestic
product of the United States shall be determined using the
average of the annual gross domestic product of the United
States, as calculated by the Bureau of Economic Analysis of
the Department of Commerce, during the 16 calendar quarters
most recently completed at the time of the determination
under paragraph (1).
``(4) Treatment of insurance companies.--
``(A) In general.--Notwithstanding the limits under
paragraphs (1) and (2), the Board may establish a separate
liability limit for a bank holding company or financial
company that the Board determines is primarily engaged in the
business of insurance, if the Board determines that such a
limit is necessary in order to provide for consistent and
equitable treatment of the bank holding company or financial
company.
``(B) Consultation.--In establishing a liability limit
under subparagraph (A), the Board shall consult with the
State insurance regulator for any bank holding company or
financial company described in subparagraph (A) having a
subsidiary that is regulated by a State insurance regulator.
``(5) Treatment of foreign deposits.--The Board may exclude
from the calculation of nondeposit liabilities under this
subsection any foreign or other deposits that are not FDIC-
assessed deposits, if the Board determines that such action
is necessary to ensure the consistent and equitable treatment
of institutions with international operations.
``(c) Prompt Corrective Action.--
``(1) Authorities.--The Board shall require a bank holding
company or financial company that violates subsection (a) to
comply with the limit under subsection (a) by--
``(A) selling or otherwise transferring assets or off-
balance-sheet items to unaffiliated firms;
``(B) terminating 1 or more activities of the bank holding
company or financial company; or
``(C) imposing conditions on the manner in which the bank
holding company or financial company conducts an activity of
the bank holding company or financial company.
``(2) Corrective action plan.--Not later than 60 days after
the Board determines that a bank holding company or financial
holding company has violated subsection (a), the Board shall
submit to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services
of the House of Representatives a plan detailing the manner
by which the bank holding company or financial company will
be brought into compliance with subsection (a).
``(3) Reports to congress.--
``(A) Written reports.--At the end of each 60-day period
following the date on which the Board submits a plan under
paragraph (1) during which a bank holding company or
financial company remains in violation of subsection (a), the
Board shall submit to the Committee on Banking, Housing, and
Urban Affairs of the Senate and the Committee on Financial
Services of the House of Representatives a report on the
compliance of the bank holding company or financial holding
company with the plan.
``(B) Testimony.--At the end of each 120-day period
following the date on which the Board submits a plan under
paragraph (1) during which a bank holding company or
financial company remains in violation of subsection (a), the
Board shall testify before the Committee on Banking, Housing,
and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives with
respect to the compliance of the bank holding company or
financial holding company with the plan.

``SEC. 14. CAPITAL ASSESSMENT PROGRAM.

``(a) Annual Capital Assessment Required.--Not later than 1
year after the date of enactment of the Restoring American
Financial Stability Act of 2010, and annually thereafter, the
Board shall conduct a capital assessment of each bank holding
company and financial company, to estimate the losses,
revenues, and reserve needs for the bank holding company or
financial company.
``(b) Report.--The Board shall submit an annual report on
the results of the capital assessments under subsection (a)
to the Secretary of the Treasury, the Committee on Banking,
Housing, and Urban Affairs of the Senate, and the Committee
on Financial Services of the House of Representatives.''.
(2) Effective date.--The amendment made by this subsection
shall take effect 3 years after the date of enactment of this
Act.
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