S.Amdt. 2172

SA 2172. Mr. PERDUE submitted an amendment intended to be proposed by
him to the bill S. 2155, to promote economic growth, provide tailored
regulatory relief, and enhance consumer protections, and for other
purposes; which was ordered to lie on the table; as follows:

Strike section 401 and insert the following:

SEC. 401. SYSTEMIC RISK DESIGNATION IMPROVEMENT.

(a) Revisions to Council Authority.--
(1) Purposes and duties.--Section 112(a)(2)(I) of the
Financial Stability Act of 2010 (12 U.S.C. 5322(a)(2)(I)) is
amended by inserting ``, which have been identified as global
systemically important BHCs under section 217.402 of title
12, Code of Federal Regulations, or subjected to a
determination under section 165(l)'' before the semicolon.
(2) Enhanced supervision.--Section 115(a) of the Financial
Stability Act of 2010 (12 U.S.C. 5325(a)) is amended--
(A) in paragraph (1), in the matter preceding subparagraph
(A), by striking ``large, interconnected bank holding
companies'' and inserting ``bank holding companies that have
been identified as global systemically important BHCs under
section 217.402 of title 12, Code of Federal Regulations, or
subjected to a determination under section 165(l)''; and
(B) in paragraph (2)--
(i) in subparagraph (A), by striking ``; or'' at the end
and inserting a period;
(ii) by striking ``the Council may'' and all that follows
through ``differentiate'' and inserting ``the Council may
differentiate''; and
(iii) by striking subparagraph (B).
(3) Reports.--Section 116(a) of the Financial Stability Act
of 2010 (12 U.S.C. 5326(a)) is amended by striking ``with
total consolidated assets of $50,000,000,000 or greater'' and
inserting ``that has been identified as a global systemically
important BHC under section 217.402 of title 12, Code of
Federal Regulations, or subjected to a determination under
section 165(l)''.
(4) Mitigation.--Section 121(a) of the Financial Stability
Act of 2010 (12 U.S.C. 5331(a)) is amended, in the matter
preceding paragraph (1), by striking ``with total
consolidated assets of $50,000,000,000 or more'' and
inserting ``that has been identified as a global systemically
important BHC under section 217.402 of title 12, Code of
Federal Regulations, or subjected to a determination under
section 165(l)''.
(5) Office of financial research.--Section 155(d) of the
Financial Stability Act of 2010 (12 U.S.C. 5345(d)) is
amended by striking ``with total consolidated assets of
50,000,000,000 or greater'' and inserting ``that have been
identified as global systemically important BHCs under
section 217.402 of title 12, Code of Federal Regulations, or
subjected to a determination under section 165(l)''.
(b) Revisions to Board Authority.--
(1) Acquisitions.--Section 163 of the Financial Stability
Act of 2010 (12 U.S.C. 5363) is amended by striking ``with
total consolidated assets equal to or greater than
$50,000,000,000'' each place the term appears and inserting
``that has been identified as a global systemically important
BHC under section 217.402 of title 12, Code of Federal
Regulations, or subjected to a determination under section
165(l)''.
(2) Management interlocks.--Section 164 of the Financial
Stability Act of 2010 (12 U.S.C. 5364) is amended by striking
``with total consolidated assets equal to or greater than
$50,000,000,000'' and inserting ``that has been identified as
a global systemically important BHC under section 217.402 of
title 12, Code of Federal Regulations, or subjected to a
determination under section 165(l)''.
(3) Enhanced supervision and prudential standards.--Section
165 of the Dodd-Frank Wall Street Reform and Consumer
Protection Act (12 U.S.C. 5365) is amended--
(A) in subsection (a)--
(i) in paragraph (1), by striking ``with total consolidated
assets equal to or greater than $50,000,000,000'' and
inserting ``that have been identified as global systemically
important BHCs under section 217.402 of title 12, Code of
Federal Regulations, or subjected to a determination under
subsection (l)''; and
(ii) by striking paragraph (2) and inserting the following:
``(2) Tailored application.--In prescribing more stringent
prudential standards under this section, the Board of
Governors may, on its own or pursuant to a recommendation by
the Council in accordance with section 115, differentiate
among companies on an individual basis or by category, taking
into consideration their capital structure, riskiness,
complexity, financial activities (including the financial
activities of their subsidiaries), size, and any other risk-
related factors that the Board of Governors deems
appropriate.'';
(B) in subsection (j)(1), by striking ``with total
consolidated assets equal to or greater than
$50,000,000,000'' and inserting ``that has been identified as
a global systemically important BHC under section 217.402 of
title 12, Code of Federal Regulations, or subjected to a
determination under subsection (l)''; and
(C) by adding at the end the following:
``(l) Additional Bank Holding Companies Subject to Enhanced
Supervision and Prudential Standards by Tailored
Regulation.--
``(1) Determination.--The Board of Governors may--
``(A) determine that a bank holding company that has not
been identified as a global systemically important BHC under
section 217.402 of title 12, Code of Federal Regulations,
shall be subject to certain enhanced supervision or
prudential standards under this section, tailored to the
risks presented, based on the considerations described in
paragraph (3), if material financial distress at the bank
holding company, or the nature, scope, size, scale,
concentration, interconnectedness, or mix of the activities
of the individual bank holding company, could pose a threat
to the financial stability of the United States; or
``(B) by regulation determine that a category of bank
holding companies that have not been identified as global
systemically important BHCs under section 217.402 of title
12, Code of Federal Regulations, shall be subject to certain
enhanced supervision or prudential standards under this
section, tailored to the risk presented by the category of
bank holding companies, based on the considerations described
in paragraph (3), if material financial distress at the
category of bank holding companies, or the nature, scope,
size, scale, concentration, interconnectedness, or mix of the
activities of the category of bank holding companies, could
pose a threat to the financial stability of the United
States.
``(2) Council approval of regulations with respect to
categories.--Notwithstanding subparagraph (B) of paragraph
(1), a regulation issued by the Board of Governors to make a
determination under that subparagraph shall not take effect
unless the Council, by a vote of not fewer than \2/3\ of the
voting members then serving, including an affirmative vote by
the Chairperson, approves the metrics used by the Board of
Governors in establishing the regulation.
``(3) Considerations.--In making any determination under
paragraph (1), the Board of Governors shall consider the
following factors:
``(A) The size of the bank holding company.
``(B) The interconnectedness of the bank holding company.

[[Page S1593]]

``(C) The extent of readily available substitutes or
financial institution infrastructure for the services of the
bank holding company.
``(D) The global cross-jurisdictional activity of the bank
holding company.
``(E) The complexity of the bank holding company.
``(F) Whether the bank holding company has a [method 1/
method 2?] score of not less than 52 [basis points? [Note:
I'm not sure about the 52 number here. Do you mean 520?
Method 1 scores range from below 130 to 530-629.]]
``(4) Consistent application of considerations.--In making
a determination under paragraph (1), the Board of Governors
shall ensure that bank holding companies that are similarly
situated with respect to the factors described under
paragraph (3), are treated similarly for purposes of any
enhanced supervision or prudential standards applied under
this section.
``(5) Use of currently reported data to avoid unnecessary
burden.--For purposes of making a determination under
paragraph (1), the Board of Governors shall make use of data
already being reported to the Board of Governors, including
scores calculated under subpart H of part 217 of title 12,
Code of Federal Regulations, to avoid placing an unnecessary
burden on bank holding companies.
``(m) Systemic Identification.--With respect to the bank
holding companies that have been identified as global
systemically important BHCs under section 217.402 of title
12, Code of Federal Regulations, or subjected to a
determination under subsection (l), the Board of Governors
shall--
``(1) publish, including on the Web site of the Board of
Governors, a list of all bank holding companies that have
been so identified, and keep such list current; and
``(2) solicit feedback from the Council on the
identification process and on the application of such process
to specific bank holding companies.''.
(4) Conforming amendment.--Section 11 of the Federal
Reserve Act (12 U.S.C. 248) is amended--
(A) by redesignating the second subsection (s) (relating to
assessments) as subsection (t); and
(B) in subsection (t)(2)(A), as so redesignated, by
striking ``having total consolidated assets of
$50,000,000,000 or more'' and inserting ``that have been
identified as global systemically important bank BHCs under
section 217.402 of title 12, Code of Federal Regulations, or
subjected to a determination under section 165(l) of the
Financial Stability Act of 2010 (12 U.S.C. 5365(l))''.
(c) Rule of Construction.--Nothing in this section or the
amendments made by this section shall be construed to
prohibit the Board of Governors of the Federal Reserve System
from prescribing enhanced prudential standards for any bank
holding company that--
(1) the Board of Governors determines, based upon the size,
interconnectedness, substitutability, global cross-
jurisdictional activity, and complexity of the bank holding
company, could pose a safety and soundness risk to the
stability of the United States banking or financial system;
and
(2) has not been designated as a global systemically
important bank holding company.
(d) Effective Date.--The amendments made by this section
shall take effect on the date that is 1 year after the date
of enactment of this Act.
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