S.Amdt. 4023

SA 4023. Mr. GREGG 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:

[[Page S3735]]

On page 541, strike lines 13 through 24, and insert the
following:
``(D) Risk based capital.--In setting risk-based capital
requirements for a person that is designated as a major swap
participant for a single type or single class or category of
swaps or activities, the prudential regulator and the
Commission shall take into account--
``(i) the risks associated with other types of swaps or
classes of swaps or categories of swaps engaged in by virtue
of the status of the person as a major swap participant;
``(ii) the liquidity of each swap, including whether such
instrument is traded on a liquid market;
``(iii) whether the swap is used to offset or hedge another
instrument or asset owned by such major swap participant; and
``(iv) whether the swap is cleared, in addition to any
other factor the prudential regulator and the Commission deem
material.''.
On page 556, strike lines 11 through 21, and insert the
following:
``(C) Risk based capital.--In setting risk-based capital
requirements for a person that is designated as a swap dealer
for a single type or single class or category of swaps or
activities, the prudential regulator and the Commission shall
take into account--
``(i) the risks associated with other types of swaps or
classes of swaps or categories of swaps engaged in by virtue
of the status of the person as a swap dealer;
``(ii) the liquidity of each swap, including whether such
instrument is traded on a liquid market;
``(iii) whether the swap is used to offset or hedge another
instrument or asset owned by such swap dealer; and
``(iv) whether the swap is cleared, in addition to any
other factor the prudential regulator and the Commission deem
material.''.
On page 646, strike line 6, and insert the following:
``(e) Risk-Based Capital and Margin Requirements.--
``(1) In general.--Each registered swap dealer and major
swap participant shall meet at all times such risk-based
capital and margin requirements as the appropriate Federal
banking agencies, the Commission, or the Securities and
Exchange Commission, as applicable, shall prescribe, by rule
or regulation, as necessary or appropriate in the public
interest or for the protection of investors and consistent
with the purposes of this title.
``(2) Capital and margin considerations.--In determining
capital and margin requirements in this subsection, the
appropriate Federal banking agencies, the Commission, and the
Securities and Exchange Commission, respectively, shall set
risk-based capital and margin requirements that such
authorities deem appropriate and necessary for the risk
associated with the swaps activities of each registered swap
dealer and major swap participant. In setting such risk-based
capital and margin requirements pursuant to the authorities
established in paragraphs (3) through (10), the appropriate
Federal banking agencies, the Commission, and the Securities
and Exchange Commission each shall consider, among other
factors--
``(A) the liquidity of each swap, including whether such
instrument is traded on a liquid market;
``(B) whether the swap is used to offset or hedge another
instrument or asset owned by such registered swap dealers and
major swap participants; and
``(C) whether the swap is cleared.''.
On page 646, line 7, strike ``(1) In general.--'' and
insert ``(3) Depository and nondepository institutions.--''.
On page 646, line 18, strike ``(2)(A)'' and insert
``(4)(A)''.
On page 647, line 7, strike ``(2)(B)'' and insert
``(4)(B)''.
On page 647, line 9, strike ``(2)'' and insert ``(4)''.
On page 648, line 5, strike ``(3)'' and insert ``(5)''.
On page 648, line 9, strike ``(2)(A)'' and insert
``(4)(A)''.
On page 649, line 6, strike ``(2)(B)'' and insert
``(4)(B)''.
On page 649, line 12, strike ``(2)(A)'' and insert
``(4)(A)''.
On page 650, line 21, strike ``(4)'' and insert ``(6)''.
On page 651, line 4, strike ``(2)(A)'' and insert
``(4)(A)''.
On page 651, line 13, strike ``(2)(B)'' and insert
``(4)(B)''.
On page 651, line 22, strike ``(4)(A)'' and insert
``(6)(A)''.
On page 651, line 23, strike ``(5)'' and insert ``(7)''.
On page 652, line 11, strike ``(6)'' and insert ``(8)''.
On page 653, line 5, strike ``(7)'' and insert ``(9)''.
On page 653, line 7, strike ``(4)(A)(i)'' and insert
``(6)(A)(i)''.
On page 653, line 8, strike ``(4)(A)(ii)'' and insert
``(6)(A)(ii)''.
On page 653, line 9, strike ``(4)(B)(i)'' and insert
``(6)(B)(i)''.
On page 653, line 10, strike ``(4)(B)(ii)'' and insert
``(6)(B)(ii)''.
On page 653, line 15, strike ``(8)'' and insert ``(9)''.
On page 653, line 16, strike ``(4)'' and insert ``(6)''.
On page 852, strike line 19, and insert the following:
``(e) Risk-Based Capital and Margin Requirements.--
``(1) In general.--Each registered security-based swap
dealer and major security-based swap participant shall meet
at all times such risk-based capital and margin requirements
as the appropriate Federal banking agencies, the Commission,
or the Securities and Exchange Commission, as applicable,
shall prescribe, by rule or regulation, as necessary or
appropriate in the public interest or for the protection of
investors and consistent with the purposes of this title.
``(2) Capital and margin considerations.--In determining
capital and margin requirements in this subsection, the
appropriate Federal banking agencies, the Commission, and the
Securities and Exchange Commission, respectively, shall set
risk-based capital and margin requirements that such
authorities deem appropriate and necessary for the risk
associated with the security-based swaps activities of each
registered security-based swap dealer and major security-
based swap participant. In setting such risk-based capital
and margin requirements pursuant to the authorities
established in paragraphs (3) through (10), the appropriate
Federal banking agencies, the Commission, and the Securities
and Exchange Commission each shall consider, among other
factors--
``(A) the liquidity of each security-based swap, including
whether such instrument is traded on a liquid market;
``(B) whether the security-based swap is used to offset or
hedge another instrument or asset owned by such registered
security-based swap dealers and major security-based swap
participants; and
``(C) whether the security-based swap is cleared.''.
On page 852, line 20, strike ``(1) In general.--'' and
insert ``(3) Depository and nondepository institutions.--''.
On page 853, line 8, strike ``(2)(A)'' and insert
``(4)(A)''.
On page 853, line 22, strike ``(2)(B)'' and insert
``(4)(B)''.
On page 854, line 1, strike ``(2)'' and insert ``(4)''.
On page 854, line 25, strike ``(3)'' and insert ``(5)''.
On page 855, line 5, strike ``(2)(A)'' and insert
``(4)(A)''.
On page 855, line 25, strike ``(2)(B)'' and insert
``(4)(B)''.
On page 856, line 7, strike ``(2)(A)'' and insert
``(4)(A)''.
On page 857, line 13, strike ``(4)'' and insert ``(6)''.
On page 857, line 22, strike ``(2)(A)'' and insert
``(4)(A)''.
On page 858, line 6, strike ``(2)(B)'' and insert
``(4)(B)''.
On page 858, line 13, strike ``(4)(A)'' and insert
``(6)(A)''.
On page 858, line 14, strike ``(5)'' and insert ``(7)''.
On page 859, line 3, strike ``(6)'' and insert ``(8)''.
On page 859, line 22, strike ``(7)'' and insert ``(9)''.
On page 859, line 24, strike ``(4)(A)'' and insert
``(6)(A)''.
On page 860, line 1, strike ``(4)(B)'' and insert
``(6)(B)''.
On page 860, line 6, strike ``(8)'' and insert ``(10)''.
On page 860, line 7, strike ``(4) and (5)'' and insert
``(6) and (7)''.
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