Systemic Risk Designation Improvement Act of 2013

Summary: Systemic Risk Designation Improvement Act of 2013 - Amends the Dodd-Frank Wall Street Reform and Consumer Protection Act 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. Prescribes an indicator-based measurement approach to be considered by the Council.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Systemic Risk Designation 
Improvement Act of 2013''.

SEC. 2. 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.''.

SEC. 3. REVISIONS TO COUNCIL AUTHORITY.

    (a) 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''.
    (b) Bank Holding Company Designation.--Section 113 of the Dodd-
Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 5323) 
is amended--
            (1) 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'';
            (2) by redesignating subsections (c), (d), (e), (f), (g), 
        (h), and (i) as subsections (d), (e), (f), (g), (h), (i), and 
        (j), respectively;
            (3) by inserting after subsection (b) the following:
    ``(c) Bank Holding Companies Subject to Enhanced Supervision and 
Prudential Standards Under Section 165.--
            ``(1) Determination.--The Council, on a nondelegable basis 
        and by a vote of not fewer than \2/3\ of the voting members 
        then serving, including an affirmative vote by the Chairperson, 
        may determine that a bank holding company shall be subject to 
        enhanced supervision and prudential standards by the Board of 
        Governors, in accordance with section 165, if the Council 
        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.
            ``(2) Considerations.--In making a determination under 
        paragraph (1), the Council shall use an indicator-based 
        measurement approach, and consider--
                    ``(A) the size of the bank holding company;
                    ``(B) the interconnectedness of the bank holding 
                company;
                    ``(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; and
                    ``(E) the complexity of the bank holding 
                company.'';
            (4) in subsection (d), as so redesignated--
                    (A) in paragraph (1)(A), by striking ``subsection 
                (a)(2) or (b)(2)'' and inserting ``subsection (a)(2), 
                (b)(2), or (c)(2)''; and
                    (B) in paragraph (4), by striking ``Subsections (d) 
                through (h)'' and inserting ``Subsections (e) through 
                (i)'';
            (5) in subsections (e), (f), (g), (h), (i), and (j)--
                    (A) by striking ``subsections (a) and (b)'' each 
                place such term appears and inserting ``subsections 
                (a), (b), and (c)''; and
                    (B) 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'';
            (6) in subsection (g), as so redesignated, by striking 
        ``subsection (e)'' and inserting ``subsection (f)'';
            (7) in subsection (h), as so redesignated, by striking 
        ``subsection (a), (b), or (c)'' and inserting ``subsection (a), 
        (b), (c), or (d)''; and
            (8) 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)''.
    (c) Enhanced Supervision.--Section 115 of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act (12 U.S.C. 5325) is amended--
            (1) 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'';
            (2) in subsection (a)(2)--
                    (A) in subparagraph (A), by striking ``or'' at the 
                end;
                    (B) by striking ``the Council may'' and all that 
                follows through ``differentiate'' and inserting ``the 
                Council may differentiate''; and
                    (C) by striking subparagraph (B); and
            (3) 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''.
    (d) 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''.
    (e) Mitigation.--Section 121 of the Dodd-Frank Wall Street Reform 
and Consumer Protection Act (12 U.S.C. 5331) is amended--
            (1) 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
            (2) in subsection (c), by striking ``subsection (a) or (b) 
        of section 113'' and inserting ``subsection (a), (b), or (c) of 
        section 113''.
    (f) 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''.

SEC. 4. REVISIONS TO BOARD AUTHORITY.

    (a) 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''.
    (b) 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''.
    (c) 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--
            (1) 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'';
            (2) in subsection (a)(2)--
                    (A) by striking ``(A) in general.--''; and
                    (B) by striking subparagraph (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''; and
            (4) 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''.