I 

118TH CONGRESS 

2D SESSION H. R. 8153 

To amend the Wall Street Transparency and Accountability Act of 2010 

to provide covered banking institutions with certain exemptions related 

to interest rate swaps, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 29, 2024 

Mr. MOONEY (for himself, Mr. DONALDS, and Mr. OGLES) introduced the following bill; which was referred to the Committee on Financial Services, 

and in addition to the Committee on Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of 

such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To amend the Wall Street Transparency and Accountability 

Act of 2010 to provide covered banking institutions with 

certain exemptions related to interest rate swaps, and 

for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Bank Risk Reduction 

5 Act of 2024’’. 


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1 SEC. 2. EXEMPTIONS FOR CERTAIN INTEREST RATE SWAPS 

2 OF COVERED BANKING INSTITUTIONS. 

3 (a) IN GENERAL.—The Wall Street Transparency 

4 and Accountability Act of 2010 (12 U.S.C. 8301 et seq.) 

5 is amended by inserting after section 754 the following: 

6 ‘‘SEC. 755. EXEMPTIONS FOR CERTAIN INTEREST RATE 

7 SWAPS OF COVERED BANKING INSTITUTIONS. 

8 ‘‘(a) IN GENERAL.—A covered banking institution— 

9 ‘‘(1) shall be exempt from any clearing or mar10 gin requirements applicable to an interest rate swap 

11 that hedges interest rate risk of debt securities or 

12 loans held on the balance sheet of the covered bank13 ing institution, including any requirements under 

14 sections 2(h) or 4s(e) of Commodity Exchange Act 

15 and the regulations promulgated thereunder; 

16 ‘‘(2) may use hedge accounting with respect to 

17 debt securities or loans held on the balance sheet of 

18 the covered banking institution; 

19 ‘‘(3) is not subject to any requirement, includ20 ing the Financial Accounting Standards Board’s Ac21 counting Standard Codification paragraph 815–20– 

22 25–43(c)(2), that restricts a covered banking institu23 tion from an option to designate a fair value hedge 

24 on the risks of changes in the fair value attributable 

25 to the interest rate risk of a held-to-maturity debt 

26 security; and 


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1 ‘‘(4) is not subject to any requirement, includ2 ing the Financial Accounting Standards Board’s Ac3 counting Standard Codification paragraph 815–20– 

4 25–43(d)(2), that restricts a covered banking insti5 tution from an option to designate a cash flow hedge 

6 to the risks of changes in the cash flows attributable 

7 to interest rate risk that result from variable cash 

8 flows of a held-to-maturity debt security. 

9 ‘‘(b) DEFINITIONS.—In this section: 

10 ‘‘(1) COVERED BANKING INSTITUTION.—The 

11 term ‘covered banking institution’ means an insured 

12 depository institution or depository institution hold13 ing company. 

14 ‘‘(2) INTEREST RATE SWAP.—With respect to a 

15 covered banking institution, the term ‘interest rate 

16 swap’ means a swap entered into by the covered 

17 banking institution for the purpose of hedging 

18 against the interest rate risk of debt securities or 

19 loans held on the balance sheet of the covered bank20 ing institution. 

21 ‘‘(3) HEDGE ACCOUNTING.—The term ‘hedge 

22 accounting’ means the accounting rules and regula23 tions that enable the financial reporting of hedging 

24 relationships to better portray the economic results 

25 of an entity’s risk management activities in its fiVerDate Sep 11 2014 02:29 May 29, 2024 Jkt 049200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H8153.IH H8153

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1 nancial statements, including the accounting rules 

2 and guidance provided by the Financial Accounting 

3 Standards Board. 

4 ‘‘(4) FAIR VALUE.—The term ‘fair value’ means 

5 the price that would be received to sell an asset or 

6 paid to transfer a liability in an orderly transaction 

7 between market participants at the measurement 

8 date.’’. 

9 (b) CLERICAL AMENDMENT.—The table of contents 

10 in section 1(b) of the Dodd-Frank Wall Street Reform and 

11 Consumer Protection Act is amended by inserting after 

12 the item relating to section 754 the following: 

‘‘Sec. 755. Exemptions for certain interest rate swaps of covered banking institutions.’’. 

Æ 


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