To provide stability in the financial services industry by promoting transparency, simplicity, fairness, accountability, and equal access in the market for consumer financial products or services and ensuring that no financial company becomes too big to fail, and for other purposes.

SECTION 1. SHORT TITLE; DEFINITIONS.

    (a) Short Title.--This Act may be cited as the ``Financial Services 
Industry Stability Act of 2010''.
    (b) Definitions.--For purposes of this Act, the following 
definitions shall apply:
            (1) Chairperson.--The term ``Chairperson'' means the 
        Chairman of the Board of Governors of the Federal Reserve 
        System.
            (2) Financial company.--The term ``financial company'' 
        means a company or other entity--
                    (A) that is--
                            (i) incorporated or organized under the 
                        laws of the United States or any State, 
                        territory, or possession of the United States, 
                        the District of Columbia, Commonwealth of 
                        Puerto Rico, Commonwealth of Northern Mariana 
                        Islands, Guam, American Samoa, or the United 
                        States Virgin Islands; or
                            (ii) a company incorporated in or organized 
                        in a country other than the United States that 
                        has significant operations in the United States 
                        through--
                                    (I) a Federal or State branch or 
                                agency of a foreign bank (as such terms 
                                are defined in the International 
                                Banking Act of 1978 (12 U.S.C. 3101 et 
                                seq.)); or
                                    (II) a United States affiliate or 
                                other United States operating entity of 
                                a company that is incorporated or 
                                organized in a country other than the 
                                United States; and
                    (B) that is, in whole or in part, directly or 
                indirectly, engaged in financial activities.

SEC. 2. FEDERAL AGENCY ACTIONS AND CONSULTATIONS; REPORT.

    (a) Review of Programs To Promote the Public Interest.--
            (1) Federal reserve board review.--The Chairperson shall--
                    (A) review all programs administered by the Board 
                of Governors of the Federal Reserve System; and
                    (B) utilize such programs in furtherance of the 
                purposes of this Act.
            (2) Other agency action.--Each Federal department, agency, 
        and independent establishment in the Executive branch shall, in 
        consultation with, and with the assistance of, the Chairperson, 
        utilize any authority of such department, agency, or 
        establishment, under any provision of law, in furtherance of 
        the purposes of this Act by carrying out programs to promote 
        transparency, simplicity, fairness, accountability, and equal 
        access in the market for consumer financial products or 
        services.
    (b) Ensure No Financial Company Becomes Too Big To Fail.--The head 
of each Federal department, agency, and independent establishment in 
the Executive branch shall, in consultation with, and with the 
assistance of, the Chairperson, take such steps as may be necessary to 
ensure that no financial company is able to pose a systemic risk to the 
health of the United States economy by becoming too large to fail.
    (c) Definitions and Rulemaking.--
            (1) In general.--The Chairperson shall, in accordance with 
        section 553 of title 5, United States Code, and in consultation 
        with all departments, agencies, and independent establishments 
        in the Executive branch, prescribe regulations which, at a 
        minimum, shall--
                    (A) define the terms ``systemic risk'' and ``too 
                large to fail'', consistent with the best financial and 
                commercial data available;
                    (B) enumerate procedures that specify when and how 
                the Chairperson and the head of any other Federal 
                department, agency, or independent establishment in the 
                Executive branch shall--
                            (i) cause financial companies that, in 
                        accordance with such regulations, are 
                        determined to be too large to fail to 
                        restructure themselves in size and scope of 
                        operations so as not to pose a systemic risk to 
                        the health of the United States economy; and
                            (ii) impose increased capital reserve 
                        requirements upon any financial company which 
                        has been ordered to restructure under clause 
                        (i), the appropriate levels of which shall be 
                        determined by regulations prescribed under this 
                        section;
                    (C) define the criteria to be used by the 
                Chairperson and the head of any other Federal 
                department, agency, or independent establishment in the 
                Executive branch in causing the restructuring of 
                financial companies under subparagraph (B)(i); and
                    (D) establish a fund comprised of annual levies on 
                financial companies at levels deemed appropriate by the 
                Chairperson and the head of each Federal department, 
                agency, or independent establishment in the Executive 
                branch for the purpose of financing restructurings 
                pursuant to subparagraph (B)(i).
            (2) Regulations.--The Chairperson shall commence the 
        process for prescribing the regulations required under this 
        subsection before the end of the 30-day period beginning on the 
        date of the enactment of this Act.
    (d) Report to the Congress.--The Chairperson and the head of each 
Federal department, agency, and independent establishment in the 
Executive branch shall submit an annual report to the Congress not 
later than January 1st of each year detailing the activities of the 
Board of Governors of the Federal Reserve System or such department, 
agency, or establishment in carrying out the requirements of this 
section.

Summary: Financial Services Industry Stability Act of 2010 - Directs the Chairman of the Board of Governors of the Federal Reserve System to review all programs administered by the Board and utilize them in furtherance of this Act. Directs each federal department, agency, and independent establishment in the executive branch to utilize its authority to: (1) implement programs to promote transparency, simplicity, fairness, accountability, and equal access in the market for consumer financial products or services. And (2) take necessary steps to ensure that no financial company is able to pose a systemic risk to the health of the US economy by becoming too large to fail. Requires the Board Chairperson to define the terms systemic risk and too large to fail and enumerate procedures that specify when and how the Chairperson and the head of any other federal department, agency, or independent executive branch establishment shall: (1) cause financial companies that are determined to be too large to fail to restructure in size and scope of operations so as not to pose a systemic risk to the health of the US economy. And (2) impose increased capital reserve requirements upon any financial company which has been ordered to restructure. Requires the Chairperson to: (1) define criteria for causing the restructuring of financial companies. And (2) establish a fund composed of annual levies on financial companies to finance restructurings.