Systemic Risk Designation Improvement Act of 2014

Summary: Systemic Risk Designation Improvement Act of 2014 - 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. Requires that final determination to be based upon specified factors using an indicator-based measurement approach established by the Basel Committee on Banking Supervision to determine systemic importance.  Exempts from any Council determination to subject a bank holding company to enhanced supervision and prudential standards a bank holding company with total consolidated assets of $50 billion or less. Prohibits the Council, before the effective date of this Act, from making a final determination concerning any material financial distress of a bank holding company identified by the Financial Stability Board as a Global Systemically Important Financial Institution. 

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Systemic Risk Designation 
Improvement Act of 2014''.

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, based on the considerations in paragraph (2), 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 the indicator-based 
        measurement approach established by the Basel Committee on 
        Banking Supervision to determine systemic importance, which 
        considers--
                    ``(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.
            ``(3) Exemption for certain bank holding companies.--This 
        subsection shall not apply to a bank holding company with total 
        consolidated assets of $50,000,000,000 or less.'';
            (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''.
    (d) Conforming Amendment.--The second subsection (s) (relating to 
``Assessments, Fees, and Other Charges for Certain Companies'') of 
section 11 of the Federal Reserve Act (12 U.S.C. 248) is amended--
            (1) by redesignating such subsection as subsection (t); and
            (2) in paragraph (2)--
                    (A) in subparagraph (A), by striking ``having total 
                consolidated assets of $50,000,000,000 or more;'' and 
                inserting ``which have been the subject of a final 
                determination under section 113 of the Dodd-Frank Wall 
                Street Reform and Consumer Protection Act; and'';
                    (B) by striking subparagraph (B); and
                    (C) by redesignating subparagraph (C) as 
                subparagraph (B).

SEC. 5. EFFECTIVE DATE.

    (a) In General.--Subject to subsection (b), the amendments made by 
this Act shall take effect one year after the date of enactment of this 
Act.
    (b) Presumption of Determination.--Notwithstanding subsection (a), 
with respect to a bank holding company that has been identified by the 
Financial Stability Board as a Global Systemically Important Financial 
Institution, the Financial Stability Oversight Council may, upon 
enactment of this Act, begin proceedings for a determination under 
section 113(c) of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act, as added by section 3(b)(3), but the Council may not 
make a final determination under such section 113(c) with respect to a 
bank holding company before the effective date described under 
subsection (a).