S.Amdt. 4087

SA 4087. Mr. PRYOR 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 20, line 1, strike ``substantially'' and insert
``predominantly''.
On page 20, beginning on line 2, strike ``activities'' and
all that follows through line 5, and insert ``financial
activities, as defined in paragraph (6).''.
On page 20, line 17, strike ``substantially'' and all that
follows through the end of line 20, and insert
``predominantly engaged in financial activities as defined in
paragraph (6).''.
On page 21, line 11, strike ``(6)'' and insert the
following:
(6) Predominantly engaged.--A company is ``predominantly
engaged in financial activities'' if--
(A) the annual gross revenues derived by the company and
all of its subsidiaries from activities that are financial in
nature (as defined in section 4(k) of the Bank Holding
Company Act of 1956) or are incidental to a financial
activity, and, if applicable, from the ownership or control
of one or more insured depository institutions, represents 85
percent or more of the consolidated annual gross revenues of
the company; or
(B) the consolidated assets of the company and all of its
subsidiaries related to activities that are financial in
nature (as defined in section 4(k) of the Bank Holding
Company Act of 1956) or are incidental to a financial
activity, and, if applicable, related to the ownership or
control of one or more insured depository institutions,
represents 85 percent or more of the consolidated assets of
the company.
(7)
On page 21, line 16, strike ``criteria'' and all the
follows through line 22, and insert ``requirements for
determining if a company is predominantly engaged in
financial activities, as defined in paragraph (6).''.
On page 37, line 3, strike ``(c)'' and insert the
following:
(c) Anti-evasion.--
(1) Determinations.--In order to avoid evasion of this Act,
the Council, on its own initiative or at the request of the
Board of Governors, may determine, on a nondelegable basis
and by a vote of not fewer than \2/3\ of the members then
serving, including an affirmative vote by the Chairperson,
that--
(A) material financial distress related to financial
activities conducted directly or indirectly by a company
incorporated or organized under the laws of the United States
or any State or the financial activities in the United States
of a company incorporated or

[[Page S3926]]

organized in a country other than the United States would
pose a threat to the financial stability of the United States
based on consideration of the factors in subsection (b)(2);
(B) the company is organized or operates in a manner that
evades the application of this Act; and
(C) such financial activities of the company shall be
supervised by the Board of Governors and subject to
prudential standards in accordance with this title.
(2) Notice and opportunity for hearing and final
determination; judicial review.--Subsections (d), (f), and
(g) shall apply to determinations made by the Council
pursuant to paragraph (1) in the same manner as such
subsections apply to nonbank financial companies.
(3) Covered financial activities.--For purposes of this
subsection, the term ``financial activities'' means
activities that are financial in nature (as defined in
section 4(k) of the Bank Holding Company Act of 1956) and
related to the ownership or control of one or more insured
depository institutions and shall not include internal
financial activities conducted for the company or any
affiliates thereof including internal treasury, investment,
and employee benefit functions.
(4) Treatment as a nonbank financial company.--
(A) Only financial activities subject to prudential
supervision.--Nonfinancial activities of the company shall
not be subject to supervision by the Board of Governors and
prudential standards of the Board. For purposes of this Act,
the financial activities that are the subject of the
determination in paragraph (1) shall be subject to the same
requirements as a nonbank financial company. Nothing in this
paragraph shall prohibit or limit the authority of the Board
of Governors to apply prudential standards under this title
to the financial activities that are subject to the
determination in paragraph (1).
(B) Consolidated supervision of only financial
activities.--To facilitate the supervision of the financial
activities subject to the determination in paragraph (1), the
Board of Governors may require a company to establish an
intermediate holding company, as provided for in section 167,
which would be subject to the supervision of the Board of
Governors and to prudential standards under this title.
(d)
On page 37, line 15, strike ``(d)'' and insert ``(e)''.
On page 39, line 3, strike ``(e)'' and insert ``(f)''.
On page 40, line 13, strike ``(f)'' and insert ``(g)''.
On page 40, line 21, strike ``(g)'' and insert ``(h)''.
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