S.Amdt. 3807

SA 3807. Mrs. HAGAN (for herself and Mr. Brown of Massachusetts)
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 486, strike lines 1 through 12, and insert the
following:
(3) the term ``sponsoring or investing'', when used with
respect to a hedge fund or private equity fund--
(A) means--
(i) serving as a general partner, managing member, or
trustee of the fund;
(ii) in any manner selecting or controlling (or having
employees, officers, directors, or agents who constitute) a
majority of the directors, trustees, or management of the
fund; or
(iii) sharing with the fund, for corporate, marketing,
promotional, or other purposes, the same name or a variation
of the same name;
(B) includes any activity that would cause the aggregate
investment of an insured depository institution, a company
that controls, directly or indirectly, an insured depository
institution or is treated as a bank holding company for
purposes of the Bank Holding Company Act of 1956 (12 U.S.C.
1841 et seq.), or any subsidiary of such institution or
company, in hedge funds and private equity funds to exceed 10
percent of the total Tier 1 capital (as that term is defined
in section 2(o) of the Bank Holding Company Act of 1956 (12
U.S.C. 1841(o)) of the institution, company, or subsidiary;
and
(C) except as provided in subparagraph (B), does not
include any activity described under this paragraph--
(i) that is conducted in connection with, or in
facilitation of, customer relationships or on behalf of
unaffiliated customers;
(ii) that is related to investing a de minimis amount, as
determined by the Council, in any hedge fund or private
equity fund, not to exceed 10 percent of the total equity of
any such fund; and
(iii) for which the obligations of any hedge or private
equity funds are not guaranteed, directly or indirectly, by
any affiliate.
On page 490, strike line 9 and all that follows through
page 491, line 10.
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