S.Amdt. 3981

SA 3981. Mr. CARDIN (for himself and Ms. Mikulski) 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 43, between lines 6 and 7, insert the following:
(3) Investment companies and advisers.--In the event that
an investment company required to be registered under the
Investment Company Act of 1940, or the registered investment
adviser to such a company, is subject to supervision by the
Board of Governors, the Council shall, in consultation with
the Commission and in lieu of the prudential standards
outlined in subsections (b) through (f), recommend to the
Board of Governors such alternative enhanced regulatory
requirements as are necessary to prevent or mitigate risks to
the financial stability of the United States that could arise
from the material financial distress of the investment
company or investment adviser. Such alternative requirements
shall consider any structural or legal limits on the ability
of the investment company or investment adviser to hold
capital.
On page 91, between lines 23 and 24, insert the following:
(3) Investment companies and advisers.--In the case of an
investment company required to be registered under the
Investment Company Act of 1940, or the registered investment
adviser to such a company, that is supervised by the Board of
Governors, the Board of Governors shall meet its obligations
under this section by adopting the alternative enhanced
regulatory requirements recommended by the Council under
section 115.
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