Bailout Prevention Act of 2015

Summary: Bailout Prevention Act of 2015 This bill amends the Federal Reserve Act, with respect to the discounting of obligations arising out of actual commercial transactions, to declare a borrower ineligible to borrow from any emergency lending program or facility unless the Board of Governors of the Federal Reserve System and all federal banking regulators with jurisdiction over the borrower certify that, at the time the borrower initially borrows under the program or facility, the borrower is not insolvent.  A borrower shall be deemed insolvent for such purposes if it is a bridge financial company (organized by the Federal Deposit Insurance Corporation [FDIC] to resolve a covered financial company) or a bridge depository institution (a new national bank or federal savings association organized by the FDIC to assume the deposits of one or more insured depository institutions that are in default or in danger of default).     The annual (penalty) interest rate for emergency lending must be at least 500 basis points greater than the cost of borrowing for the United States Treasury for a commensurate loan term.   The Board may create an emergency lending program or facility that does not meet the broad-based eligibility requirement (that at least five companies be eligible to participate in it) or this penalty rate requirement, but only if Congress enacts a joint resolution of approval within 30 days. The Bank Holding Company Act of 1956 is amended to repeal the authorization for certain financial holding companies to engage in, or own or control shares of a company that is engaged in commodity trading, selling, or investing if certain requirements are met.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Bailout Prevention Act of 2015''.

SEC. 2. DISCOUNTS FOR INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS.

    Section 13(3)(B) of the Federal Reserve Act (12 U.S.C. 343(3)(B)) 
is amended by striking clauses (ii) and (iii) and inserting the 
following:
                    ``(ii)(I) The Board shall establish procedures to 
                prohibit borrowing from programs and facilities by 
                borrowers that are insolvent. A borrower shall not be 
                eligible to borrow from any emergency lending program 
                or facility unless the Board and all Federal banking 
                regulators with jurisdiction over the borrower certify 
                that, at the time the borrower initially borrows under 
                the program or facility, the borrower is not insolvent. 
                Solvency shall be assessed by examining the last 4 
                months of relevant financial data and determining 
                whether the fair value of the borrower's assets exceeds 
                the fair value of the borrower's liabilities, with 
                appropriate adjustment for temporary illiquidity in 
                relevant markets.
                    ``(II) A borrower shall be considered insolvent for 
                purposes of this subparagraph if the borrower is--
                            ``(aa) in bankruptcy, resolution under 
                        title II of the Dodd-Frank Wall Street Reform 
                        and Consumer Protection Act (12 U.S.C. 5381 et 
                        seq.), or any other Federal or State insolvency 
                        proceeding; or
                            ``(bb) a bridge financial company (as 
                        defined in section 201(a) of the Dodd-Frank 
                        Wall Street Reform and Consumer Protection Act 
                        (12 U.S.C. 5381(a))) or a bridge depository 
                        institution (as defined in section 3 of the 
                        Federal Deposit Insurance Act (12 U.S.C. 
                        1813)).
                    ``(III) If the Board or any other banking regulator 
                makes a certification of solvency, the Board or banking 
                regulator, as applicable, shall issue a contemporaneous 
                public statement providing a detailed explanation of 
                the certification decision.
                    ``(iii) A program or facility shall be considered a 
                program or facility with broad-based eligibility only 
                if not fewer than 5 companies are eligible to 
                participate in the program or facility in a significant 
                manner.''.

SEC. 3. PENALTY RATE REQUIREMENT; CONGRESSIONAL APPROVAL REQUIREMENT.

    Section 13(3) of the Federal Reserve Act (12 U.S.C. 343(3)) is 
amended by adding at the end the following:
                    ``(F) Any emergency lending under this paragraph 
                shall be provided at an annual interest rate not less 
                than 500 basis points greater than the cost of 
                borrowing for the United States Treasury for a 
                commensurate loan term.
                    ``(G)(i) If the Board determines that the Board 
                shall create an emergency lending program or facility 
                that does not comply with the broad-based eligibility 
                requirement described in subparagraph (B)(iii) or the 
                penalty rate requirement described in subparagraph (F), 
                the Board--
                            ``(I) may create such a program or 
                        facility; and
                            ``(II) not later than 3 days after the date 
                        on which a program or facility is created under 
                        clause (i), shall submit to Congress a report 
                        that describes the reasons why the Board is 
                        unable to comply with any requirement described 
                        in the matter preceding subclause (I).
                    ``(ii)(I) A program or facility created under 
                clause (i)(I) shall terminate on the date that is 30 
                calendar days after the date on which Congress receives 
                a report described in clause (i)(II) unless there is 
                enacted into law a joint resolution approving the 
                program or facility not later than 30 calendar days 
                after the date on which the report is received. Any 
                loan offered through the program or facility that are 
                outstanding as of the date on which the facility is 
                terminated shall be repaid in full not later than 30 
                calendar days after the date on which the program or 
                facility is terminated.
                    ``(II) For the purpose of this section, the term 
                `joint resolution' means only a joint resolution--
                            ``(aa) that is introduced not later than 3 
                        calendar days after the date on which the 
                        report referred to in clause (i)(I) is received 
                        by Congress;
                            ``(bb) that does not have a preamble;
                            ``(cc) the title of which is as follows: 
                        `Joint resolution relating to the approval of a 
                        program or facility created by the Board of 
                        Governors of the Federal Reserve System'; and
                            ``(dd) the matter after the resolving 
                        clause of which is as follows: `That Congress 
                        approves the program or facility created by the 
                        Board of Governors of the Federal Reserve 
                        System on __________.' (The blank space being 
                        appropriately filled in).
                    ``(III)(aa) Upon receipt of a report under 
                subsection (a)(3), the Speaker, if the House would 
                otherwise be adjourned, shall notify the Members of the 
                House that, pursuant to this section, the House shall 
                convene not later than the second calendar day after 
                receipt of such report.
                    ``(bb) Any committee of the House of 
                Representatives to which a joint resolution is referred 
                shall report it to the House not later than 5 calendar 
                days after the date of receipt of the report described 
                in clause (i)(II). If a committee fails to report the 
                joint resolution within that period, the committee 
                shall be discharged from further consideration of the 
                joint resolution and the joint resolution shall be 
                referred to the appropriate calendar.
                    ``(cc) After each committee authorized to consider 
                a joint resolution reports it to the House or has been 
                discharged from its consideration, it shall be in 
                order, not later than the sixth day after Congress 
                receives the report described in clause (i)(II), to 
                move to proceed to consider the joint resolution in the 
                House. All points of order against the motion are 
                waived. Such a motion shall not be in order after the 
                House has disposed of a motion to proceed on the joint 
                resolution. The previous question shall be considered 
                as ordered on the motion to its adoption without 
                intervening motion. The motion shall not be debatable. 
                A motion to reconsider the vote by which the motion is 
                disposed of shall not be in order.
                    ``(dd) The joint resolution shall be considered as 
                read. All points of order against the joint resolution 
                and against its consideration are waived. The previous 
                question shall be considered as ordered on the joint 
                resolution to its passage without intervening motion 
                except 2 hours of debate equally divided and controlled 
                by the proponent and an opponent. A motion to 
                reconsider the vote on passage of the joint resolution 
                shall not be in order.
            ``(IV)(aa) Upon receipt of a report under clause (i)(II), 
        if the Senate has adjourned or recessed for more than 2 days, 
        the majority leader of the Senate, after consultation with the 
        minority leader of the Senate, shall notify the Members of the 
        Senate that, pursuant to this subparagraph, the Senate shall 
        convene not later than the second calendar day after receipt of 
        such message.
            ``(bb) Upon introduction in the Senate, the joint 
        resolution shall be placed immediately on the calendar.
            ``(cc)(AA) Notwithstanding Rule XXII of the Standing Rules 
        of the Senate, it is in order at any time during the period 
        beginning on the fourth day after the date on which Congress 
        receives a report described in clause (i)(II) and ending on the 
        sixth day after the date on which Congress receives the report 
        (even though a previous motion to the same effect has been 
        disagreed to) to move to proceed to the consideration of the 
        joint resolution, and all points of order against the joint 
        resolution (and against consideration of the joint resolution) 
        are waived. The motion to proceed is not debatable. The motion 
        is not subject to a motion to postpone. A motion to reconsider 
        the vote by which the motion is agreed to or disagreed to shall 
        not be in order. If a motion to proceed to the consideration of 
        the resolution is agreed to, the joint resolution shall remain 
        the unfinished business until disposed of.
            ``(BB) Debate on the joint resolution, and on all debatable 
        motions and appeals in connection therewith, shall be limited 
        to not more than 10 hours, which shall be divided equally 
        between the majority and minority leaders or their designees. A 
        motion further to limit debate is in order and not debatable. 
        An amendment to, or a motion to postpone, or a motion to 
        proceed to the consideration of other business, or a motion to 
        recommit the joint resolution is not in order.
            ``(CC) The vote on passage shall occur immediately 
        following the conclusion of the debate on a joint resolution, 
        and a single quorum call at the conclusion of the debate if 
        requested in accordance with the rules of the Senate.
            ``(DD) Appeals from the decisions of the Chair relating to 
        the application of the rules of the Senate, as the case may be, 
        to the procedure relating to a joint resolution shall be 
        decided without debate.
    ``(V)(aa) If, before the passage by one House of a joint resolution 
of that House, that House receives from the other House a joint 
resolution, then the following procedures shall apply:
            ``(AA) The joint resolution of the other House shall not be 
        referred to a committee.
            ``(BB) With respect to a joint resolution of the House 
        receiving the resolution--
            ``(CC) the procedure in that House shall be the same as if 
        no joint resolution had been received from the other House; but
            ``(DD) the vote on passage shall be on the joint resolution 
        of the other House.
    ``(bb) If one House fails to introduce or consider a joint 
resolution under this section, the joint resolution of the other House 
shall be entitled to expedited floor procedures under this section.
    ``(cc) If, following passage of the joint resolution in the Senate, 
the Senate then receives the companion measure from the House of 
Representatives, the companion measure shall not be debatable.
    ``(dd) If the President vetoes the joint resolution, the period 
beginning on the date the President vetoes the joint resolution and 
ending on the date the Congress receives the veto message with respect 
to the joint resolution shall be disregarded in computing the 30-
calendar day period described in subclause (I) and debate on a veto 
message in the Senate under this section shall be 1 hour equally 
divided between the majority and minority leaders or their designees.
    ``(ee) This subclause and subclauses (II), (III), and (IV) are 
enacted by Congress--
            ``(AA) as an exercise of the rulemaking power of the Senate 
        and House of Representatives, respectively, and as such it is 
        deemed a part of the rules of each House, respectively, but 
        applicable only with respect to the procedure to be followed in 
        that House in the case of a joint resolution, and it supersedes 
        other rules only to the extent that it is inconsistent with 
        such rules; and
            ``(BB) with full recognition of the constitutional right of 
        either House to change the rules (so far as relating to the 
        procedure of that House) at any time, in the same manner, and 
        to the same extent as in the case of any other rule of that 
        House.''.

SEC. 4. REGULATION OF CERTAIN FINANCIAL HOLDING COMPANIES.

    (a) In General.--Section 4 of the Bank Holding Company Act of 1956 
(12 U.S.C. 1843) is amended by striking subsection (o).
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on the date that is 5 years after the date of enactment of 
this Act.