S.Amdt. 3971
What it does: Adds SEC. 333. EXAMINATION AND ENFORCEMENT AUTHORITY FOR INSURANCE AND ORDERLY LIQUIDATION PURPOSES at the end of subtitle C of title III
Sen. Carl Levin (D-MI)What it changes
1 change to S. 3217
Adds SEC. 333. EXAMINATION AND ENFORCEMENT AUTHORITY FOR INSURANCE AND ORDERLY LIQUIDATION PURPOSES at the end of subtitle C of title III
Adds a sectionInserted: SEC. 333. EXAMINATION AND ENFORCEMENT AUTHORITY FOR INSURANCE AND ORDERLY LIQUIDATION PURPOSES.
Inserted: (a) Examination Authority for Insurance and Orderly Liquidation Purposes.--Section 10(b)(3) of the Federal Deposit Insurance Act (12 U.S.C. 1820(b)(3)) is amended by striking "whenever the Board" and all that follows through the period at the end and inserting the following: "or depository institution holding company whenever the Chairperson or the Board of Directors determines that a special examination of any such depository institution or depository institution holding company is necessary to determine the condition of such depository institution or depository institution holding company for insurance purposes or for purposes of title II of the Restoring American Financial Stability Act of 2010.".
Inserted: (b) Enforcement Authority.--Section 8(t) of the Federal Deposit Insurance Act (12 U.S.C. 1818(t)) is amended--
Inserted: (1) in paragraph (1)--
Inserted: (A) by striking "based on an examination of an insured depository institution" and inserting "based on an examination of an insured depository institution or depository institution holding company"; and
Inserted: (B) by striking "with respect to any insured depository institution or" and inserting "with respect to any insured depository institution, depository institution holding company, or";
Inserted: (2) in paragraph (2)--
Inserted: (A) by inserting "Chairperson or" before "Board of Directors determines, upon a vote";
Inserted: (B) in subparagraph (B), by striking "or" at the end;
Inserted: (C) in subparagraph (C), by striking the period at the end and inserting "; or"; and
Inserted: (D) by adding at the end the following:
Inserted: "(D) the conduct or threatened conduct (including any acts or omissions) of the depository institution holding company poses a risk to the Deposit Insurance Fund or of the exercise of authority under title II of the Restoring American Financial Stability Act of 2010, or may prejudice the interests of the depositors of an affiliated institution.";
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Inserted: (3) in paragraph (3)(A), by striking "upon a vote of the Board of Directors" and inserting "upon a determination by the Chairperson or upon a vote of the Board of Directors";
Inserted: (4) in paragraph (4)(A)--
Inserted: (A) by striking "any insured depository institution" and inserting "any insured depository institution, depository institution holding company,"; and
Inserted: (B) by striking "the institution" and inserting "the institution, holding company,";
Inserted: (5) in paragraph (4)(B), by striking "the institution" each place that term appears and inserting "the institution, holding company,"; and
Inserted: (6) in paragraph (5)(A), by striking "an insured depository institution" and inserting "an insured depository institution, depository institution holding company,".
Inserted: (c) Back-up Examination Authority for Orderly Liquidation Purposes.--The Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) is amended by adding at the end the following:
Inserted: "SEC. 51. BACK-UP EXAMINATION AUTHORITY FOR ORDERLY LIQUIDATION PURPOSES.
Inserted: "The Corporation may conduct a special examination of a nonbank financial company supervised by the Board of Governors of the Federal Reserve System under section 113 of the Restoring American Financial Stability Act of 2010, if the Chairperson or the Board of Directors determines an examination is necessary to determine the condition of the company for purposes of title II of that Act.".
Inserted: (d) Access to Information for Insurance and Orderly Liquidation Purposes.--The Federal Deposit Insurance Act is amended by adding at the end the following:
Inserted: "SEC. 52. ACCESS TO INFORMATION FOR INSURANCE AND ORDERLY LIQUIDATION PURPOSES.
Inserted: "(a) Access to Information.--The Corporation may, if the Corporation determines that such action is necessary to carry out its responsibilities relating to deposit insurance or orderly liquidation under this Act, title II of the Restoring American Financial Stability Act of 2010, or otherwise applicable Federal law--
Inserted: "(1) obtain information from an insured depository institution, depository institution holding company, or nonbank financial company supervised by the Board of Governors of the Federal Reserve System under section 113 of the Restoring American Financial Stability Act of 2010;
Inserted: "(2) obtain information from the appropriate Federal banking agency, or any regulator of a nonbank financial company supervised by the Board of Governors of the Federal Reserve System under section 113 of the Restoring American Financial Stability Act of 2010, including examination reports; and
Inserted: "(3) participate in any examination, visitation, or risk-scoping activity of an insured depository institution, depository institution holding company, or nonbank financial company supervised by the Board of Governors of the Federal Reserve System under section 113 of the Restoring American Financial Stability Act of 2010.
Inserted: "(b) Enforcement.--The Corporation shall have the authority to take any enforcement action under section 8 against any institution or company described in paragraph (1) of subsection (a) that fails to provide any information requested under that paragraph.
Inserted: "(c) Use of Available Information.--The Corporation shall use, in lieu of a request for information under subsection (a), information provided to another Federal or State regulatory agency, publicly available information, or externally audited financial statements to the extent that the Corporation determines such information is adequate to the needs of the Corporation.".
Original wording
At the end of subtitle C of title III, add the following:
Read automatically from the Congressional Record. Check the original before relying on it.
As printed
SA 3971. Mr. LEVIN (for himself and Mr. Kaufman) submitted an amendment intended to be proposed by him 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:
At the end of subtitle C of title III, add the following:
SEC. 333. EXAMINATION AND ENFORCEMENT AUTHORITY FOR INSURANCE AND ORDERLY LIQUIDATION PURPOSES.
(a) Examination Authority for Insurance and Orderly Liquidation Purposes.--Section 10(b)(3) of the Federal Deposit Insurance Act (12 U.S.C. 1820(b)(3)) is amended by striking “whenever the Board” and all that follows through the period at the end and inserting the following: “or depository institution holding company whenever the Chairperson or the Board of Directors determines that a special examination of any such depository institution or depository institution holding company is necessary to determine the condition of such depository institution or depository institution holding company for insurance purposes or for purposes of title II of the Restoring American Financial Stability Act of 2010.”.
(b) Enforcement Authority.--Section 8(t) of the Federal Deposit Insurance Act (12 U.S.C. 1818(t)) is amended--
(1) in paragraph (1)--
(A) by striking “based on an examination of an insured depository institution” and inserting “based on an examination of an insured depository institution or depository institution holding company”; and
(B) by striking “with respect to any insured depository institution or” and inserting “with respect to any insured depository institution, depository institution holding company, or”;
(2) in paragraph (2)--
(A) by inserting “Chairperson or” before “Board of Directors determines, upon a vote”;
(B) in subparagraph (B), by striking “or” at the end;
(C) in subparagraph (C), by striking the period at the end and inserting “; or”; and
(D) by adding at the end the following:
“(D) the conduct or threatened conduct (including any acts or omissions) of the depository institution holding company poses a risk to the Deposit Insurance Fund or of the exercise of authority under title II of the Restoring American Financial Stability Act of 2010, or may prejudice the interests of the depositors of an affiliated institution.”;
(3) in paragraph (3)(A), by striking “upon a vote of the Board of Directors” and inserting “upon a determination by the Chairperson or upon a vote of the Board of Directors”;
(4) in paragraph (4)(A)--
(A) by striking “any insured depository institution” and inserting “any insured depository institution, depository institution holding company,”; and
(B) by striking “the institution” and inserting “the institution, holding company,”;
(5) in paragraph (4)(B), by striking “the institution” each place that term appears and inserting “the institution, holding company,”; and
(6) in paragraph (5)(A), by striking “an insured depository institution” and inserting “an insured depository institution, depository institution holding company,”.
(c) Back-up Examination Authority for Orderly Liquidation Purposes.--The Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) is amended by adding at the end the following:
“SEC. 51. BACK-UP EXAMINATION AUTHORITY FOR ORDERLY LIQUIDATION PURPOSES.
“The Corporation may conduct a special examination of a nonbank financial company supervised by the Board of Governors of the Federal Reserve System under section 113 of the Restoring American Financial Stability Act of 2010, if the Chairperson or the Board of Directors determines an examination is necessary to determine the condition of the company for purposes of title II of that Act.”.
(d) Access to Information for Insurance and Orderly Liquidation Purposes.--The Federal Deposit Insurance Act is amended by adding at the end the following:
“SEC. 52. ACCESS TO INFORMATION FOR INSURANCE AND ORDERLY LIQUIDATION PURPOSES.
“(a) Access to Information.--The Corporation may, if the Corporation determines that such action is necessary to carry out its responsibilities relating to deposit insurance or orderly liquidation under this Act, title II of the Restoring American Financial Stability Act of 2010, or otherwise applicable Federal law--
“(1) obtain information from an insured depository institution, depository institution holding company, or nonbank financial company supervised by the Board of Governors of the Federal Reserve System under section 113 of the Restoring American Financial Stability Act of 2010;
“(2) obtain information from the appropriate Federal banking agency, or any regulator of a nonbank financial company supervised by the Board of Governors of the Federal Reserve System under section 113 of the Restoring American Financial Stability Act of 2010, including examination reports; and
“(3) participate in any examination, visitation, or risk-scoping activity of an insured depository institution, depository institution holding company, or nonbank financial company supervised by the Board of Governors of the Federal Reserve System under section 113 of the Restoring American Financial Stability Act of 2010.
“(b) Enforcement.--The Corporation shall have the authority to take any enforcement action under section 8 against any institution or company described in paragraph (1) of subsection (a) that fails to provide any information requested under that paragraph.
“(c) Use of Available Information.--The Corporation shall use, in lieu of a request for information under subsection (a), information provided to another Federal or State regulatory agency, publicly available information, or externally audited financial statements to the extent that the Corporation determines such information is adequate to the needs of the Corporation.”.
Legislative Activity
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Senate amendment submitted
May 11, 2010