To amend the Dodd-Frank Wall Street Reform and Consumer Protection Act to specify when bank holding companies may be subject to certain enhanced supervision.

Summary: Amends the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) to authorize the Financial Stability Oversight Council to determine that a bank holding company shall be subject to enhanced supervision and prudential standards by the Board of Governors of the Federal Reserve System, if the Council makes a final determination that material financial distress at the bank holding company, or the nature, scope, size, scale, concentration, interconnectedness, or mix of its activities could threaten the financial stability of the United States.  Subjects bank holding companies with total consolidated assets of $250 billion or more to such enhanced supervision and prudential standards. Directs the Council to: (1) review each bank holding company with total consolidated assets of between $50 billion and $250 billion in order to determine whether to subject such company to such enhanced Board supervision and prudential standards; and (2) re-review within 36 months any company not subjected to enhanced Board supervision and prudential standards, or sooner if its activities have significantly changed and it might pose a threat to U.S. financial stability.  Expresses the sense of Congress that: (1) consolidated asset size is only one of many factors to be considered in determining systemic risk; and (2) specified processes identified in Dodd-Frank (as modified by this Act) represent a more accurate indicator of systemic risk.

SECTION 1. ENHANCED SUPERVISION OF CERTAIN BANK HOLDING COMPANIES.

    (a) Table of Contents.--The table of contents for the Dodd-Frank 
Wall Street Reform and Consumer Protection Act (12 U.S.C. 5301 et seq.) 
is amended by striking the item relating to section 113 and inserting 
the following:

``Sec. 113. Authority to require enhanced supervision and regulation of 
                            certain nonbank financial companies and 
                            certain bank holding companies.''.
    (b) Revisions to Council Authority.--
            (1) Purposes and duties.--Section 112 of the Dodd-Frank 
        Wall Street Reform and Consumer Protection Act (12 U.S.C. 5322) 
        is amended in subsection (a)(2)(I) by inserting before the 
        semicolon ``, which have been the subject of a final 
        determination under section 113''.
            (2) Bank holding company designation.--Section 113 of the 
        Dodd-Frank Wall Street Reform and Consumer Protection Act (12 
        U.S.C. 5323) is amended--
                    (A) by amending the heading for such section to 
                read as follows: ``authority to require enhanced 
                supervision and regulation of certain nonbank financial 
                companies and certain bank holding companies'';
                    (B) by redesignating subsections (c), (d), (e), 
                (f), (g), (h), and (i) as subsections (d), (e), (f), 
                (g), (h), (i), and (j), respectively;
                    (C) by inserting after subsection (b) the 
                following:
    ``(c) Bank Holding Companies Subject to Enhanced Supervision and 
Prudential Standards Under Section 165.--
            ``(1) In general.--There is a determination that bank 
        holding companies with total consolidated assets equal to or 
        greater than $250,000,000,000 shall be subject to enhanced 
        supervision and prudential standards by the Board of Governors, 
        in accordance with section 165.
            ``(2) Enhanced supervision for certain bank holding 
        companies.--
                    ``(A) Determination.--The Council shall review each 
                bank holding company with total consolidated assets 
                equal to or greater than $50,000,000,000 but less than 
                $250,000,000,000 to determine whether such company 
                shall be subject to enhanced supervision and prudential 
                standards by the Board of Governors, in accordance with 
                section 165. Such determination shall be made if the 
                Council, on a non-delegable basis and by a vote of not 
                fewer than \2/3\ of the voting members then serving, 
                including an affirmative vote by the Chairperson, 
                determines that material financial distress at the bank 
                holding company, or the nature, scope, size, scale, 
                concentration, interconnectedness, or mix of the 
                activities of the bank holding company, could pose a 
                threat to the financial stability of the United States.
                    ``(B) Considerations.--In making a determination 
                under subparagraph (A), the Council shall consider the 
                following:
                            ``(i) the size of the bank holding company;
                            ``(ii) the interconnectedness of the bank 
                        holding company;
                            ``(iii) the extent of readily available 
                        substitutes or financial institution 
                        infrastructure for the services of the bank 
                        holding company;
                            ``(iv) the global cross-jurisdictional 
                        activity of the bank holding company; and
                            ``(v) the complexity of the bank holding 
                        company.
                    ``(C) Review of determination.--With respect to a 
                bank holding company described under subparagraph (A) 
                that is not subject to enhanced supervision and 
                prudential standards, the Council shall perform an 
                additional review under subparagraph (A) of such 
                company if--
                            ``(i) the Council finds that the nature, 
                        scope, size, scale, concentration, 
                        interconnectedness, or mix of the activities of 
                        the bank holding company have significantly 
                        changed and the company should be reviewed 
                        again to determine if it may pose a threat to 
                        the financial stability of the United States; 
                        or
                            ``(ii) a period of 36 months has passed 
                        since the bank holding company was last 
                        reviewed under subparagraph (A).
                    ``(D) Notification of review.--If, after a review 
                under this paragraph, the Council determines that a 
                bank holding company described under subparagraph (A) 
                shall be subject to enhanced supervision and prudential 
                standards, the Council shall provide the bank holding 
                company with written notice of such determination and 
                an explanation of the Council's reasoning for such 
                determination.
                    ``(E) Termination of enhanced supervision and 
                prudential standards.--If, with respect to a bank 
                holding company described under subparagraph (A) that 
                is subject to enhanced supervision and prudential 
                standards, the Council finds, on a non-delegable basis 
                and by a vote of not fewer than \2/3\ of the voting 
                members then serving, including an affirmative vote by 
                the Chairperson, that material financial distress at 
                the bank holding company, or the nature, scope, size, 
                scale, concentration, interconnectedness, or mix of the 
                activities of the bank holding company, do not pose a 
                threat to the financial stability of the United States, 
                such company shall no longer be subject to enhanced 
                supervision and prudential standards.'';
                    (D) in subsection (d), as so redesignated--
                            (i) in paragraph (1)(A), by striking 
                        ``subsection (a)(2) or (b)(2)'' and inserting 
                        ``subsection (a)(2), (b)(2), or (c)(2)''; and
                            (ii) in paragraph (4), by striking 
                        ``Subsections (d) through (h)'' and inserting 
                        ``Subsections (e) through (i)'';
                    (E) in subsections (f), (g), (h), (i), and (j), as 
                so redesignated--
                            (i) by striking ``subsections (a) and (b)'' 
                        each place such term appears and inserting 
                        ``subsections (a), (b), and (c)''; and
                            (ii) by striking ``nonbank financial 
                        company'' each place such term appears and 
                        inserting ``bank holding company for which 
                        there has been a determination under subsection 
                        (c) or nonbank financial company'';
                    (F) in subsection (g), as so redesignated, by 
                striking ``subsection (e)'' and inserting ``subsection 
                (f)'';
                    (G) in subsection (h), as so redesignated, by 
                striking ``subsection (a), (b), or (c)'' and inserting 
                ``subsection (a), (b), (c), or (d)''; and
                    (H) in subsection (i), as so redesignated, by 
                striking ``subsection (d)(2), (e)(3), or (f)(5)'' and 
                inserting ``subsection (e)(2), (f)(3), or (g)(5)''.
            (3) Enhanced supervision.--Section 115 of the Dodd-Frank 
        Wall Street Reform and Consumer Protection Act (12 U.S.C. 5325) 
        is amended--
                    (A) in subsection (a)(1), by striking ``large, 
                interconnected bank holding companies'' and inserting 
                ``bank holding companies which have been the subject of 
                a final determination under section 113'';
                    (B) in subsection (a)(2)--
                            (i) in subparagraph (A), by striking ``or'' 
                        at the end;
                            (ii) by striking ``the Council may'' and 
                        all that follows through ``differentiate'' and 
                        inserting ``the Council may differentiate''; 
                        and
                            (iii) by striking subparagraph (B); and
                    (C) in subsection (b)(3), by striking ``subsections 
                (a) and (b) of section 113'' each place such term 
                appears and inserting ``subsections (a), (b), and (c) 
                of section 113''.
            (4) Reports.--Section 116(a) of the Dodd-Frank Wall Street 
        Reform and Consumer Protection Act (12 U.S.C. 5326(a)) is 
        amended by striking ``with total consolidated assets of 
        $50,000,000,000 or greater'' and inserting ``which has been the 
        subject of a final determination under section 113''.
            (5) Mitigation.--Section 121 of the Dodd-Frank Wall Street 
        Reform and Consumer Protection Act (12 U.S.C. 5331) is 
        amended--
                    (A) in subsection (a), by striking ``with total 
                consolidated assets of $50,000,000,000 or more'' and 
                inserting ``which has been the subject of a final 
                determination under section 113''; and
                    (B) in subsection (c), by striking ``subsection (a) 
                or (b) of section 113'' and inserting ``subsection (a), 
                (b), or (c) of section 113''.
            (6) Office of financial research.--Section 155 of the Dodd-
        Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 
        5345) is amended in subsection (d) by striking ``with total 
        consolidated assets of $50,000,000,000 or greater'' and 
        inserting ``which have been the subject of a final 
        determination under section 113''.
    (c) Revisions to Board Authority.--
            (1) Acquisitions.--Section 163 of the Dodd-Frank Wall 
        Street Reform and Consumer Protection Act (12 U.S.C. 5363) is 
        amended by striking ``with total consolidated assets equal to 
        or greater than $50,000,000,000'' each place such term appears 
        and inserting ``which has been the subject of a final 
        determination under section 113''.
            (2) Management interlocks.--Section 164 of the Dodd-Frank 
        Wall Street Reform and Consumer Protection Act (12 U.S.C. 5364) 
        is amended by striking ``with total consolidated assets equal 
        to or greater than $50,000,000,000'' and inserting ``which has 
        been the subject of a final determination under section 113''.
            (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), by striking ``with total 
                consolidated assets equal to or greater than 
                $50,000,000,000'' and inserting ``which have been the 
                subject of a final determination under section 113'';
                    (B) in subsection (a)(2)--
                            (i) by striking ``(A) In general.--''; and
                            (ii) by striking subparagraph (B);
                    (C) by striking ``subsections (a) and (b) of 
                section 113'' each place such term appears and 
                inserting ``subsections (a), (b), and (c) of section 
                113''; and
                    (D) in subsection (j), by striking ``with total 
                consolidated assets equal to or greater than 
                $50,000,000,000'' and inserting ``which has been the 
                subject of a final determination under section 113''.
    (d) Effective Date; Expedited Rulemaking Authority.--
            (1) Effective date.--The amendments made by this section 
        shall take effect on the earlier of the following:
                    (A) the date on which the Financial Stability 
                Oversight Council issues final regulations to carry out 
                the amendment made by this section; or
                    (B) the end of the 18-month period beginning on the 
                date of the enactment of this Act.
            (2) Expedited rulemaking authority.--The Financial 
        Stability Oversight Counsel and the Board of Governors of the 
        Federal Reserve System shall--
                    (A) issue regulations to carry out the amendments 
                made by this section--
                            (i) in proposed form, not later than the 
                        end of the 90-day period beginning on the date 
                        of the enactment of this Act; and
                            (ii) in final form, not later than the end 
                        of the 180-day period beginning on the date of 
                        the enactment of this Act; and
                    (B) such final regulations shall take effect not 
                later than the end of the 1-year period beginning on 
                the date of the enactment of this Act.

SEC. 2. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) consolidated asset size remains a factor, but only one 
        of many factors, that should be considered in determining 
        systemic risk; and
            (2) the more objective and complete processes identified in 
        section 112 of the Dodd-Frank Wall Street Reform and Consumer 
        Protection Act, as modified by this Act, represent a more 
        accurate indicator of systemic risk.