II 

113TH CONGRESS 

1ST SESSION S. 798 

To address equity capital requirements for financial institutions, bank holding 

companies, subsidiaries, and affiliates, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

APRIL 24, 2013 

Mr. BROWN (for himself, Mr. VITTER, Mr. KIRK, and Mr. SESSIONS) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To address equity capital requirements for financial institutions, bank holding companies, subsidiaries, and affiliates, 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 ‘‘Terminating Bailouts 

5 for Taxpayer Fairness Act of 2013’’ or the ‘‘TBTF Act’’. 

6 SEC. 2. DEFINITIONS. 

7 (a) IN GENERAL.—As used in this Act— 

8 (1) the terms ‘‘affiliate’’, ‘‘appropriate Federal 

9 banking agency’’, ‘‘Federal banking agency’’, ‘‘forVerDate Mar 15 2010 22:34 Apr 29, 2013 Jkt 029200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S798.IS S798

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1 eign bank’’, and ‘‘insured depository institution’’ 

2 have the same meanings as in section 3 of the Fed3 eral Deposit Insurance Act (12 U.S.C. 1813); 

4 (2) the terms ‘‘bank holding company’’ and 

5 ‘‘subsidiary’’ have the same meanings as in section 

6 2 of the Bank Holding Company Act of 1956 (12 

7 U.S.C. 1841); 

8 (3) the term ‘‘Board’’ means the Board of Gov9 ernors of the Federal Reserve System; 

10 (4) the term ‘‘Corporation’’ means the Federal 

11 Deposit Insurance Corporation; 

12 (5) the term ‘‘financial institution’’ means an 

13 insured depository institution, bank holding com14 pany, a savings and loan holding company, and a 

15 foreign bank subject to the Bank Holding Company 

16 Act of 1956; 

17 (6) the term ‘‘nonbank financial company’’ has 

18 the same meaning as in the Dodd-Frank Wall Street 

19 Reform and Consumer Protection Act (12 U.S.C. 

20 5311); and 

21 (7) the term ‘‘savings and loan holding com22 pany’’ has the same meaning as in section 10 of the 

23 Home Owners’ Loan Act (10 U.S.C. 1467a), except 

24 that such term does not include any savings and 

25 loan holding company described in section 


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1 10(c)(9)(C) of the Home Owners’ Loan Act (12 

2 U.S.C. 1467a(c)(9)(C)). 

3 SEC. 3. EQUITY CAPITAL REQUIREMENTS. 

4 (a) EQUITY CAPITAL REQUIREMENTS FOR BANK

5 HOLDING COMPANIES, SUBSIDIARIES, AND AFFILI6 ATES.— 

7 (1) EQUITY CAPITAL REQUIREMENTS.— 

8 (A) IN GENERAL.—Not later than 1 year 

9 after the date of enactment of this Act, the ap10 propriate Federal banking agency, in consulta11 tion with the other Federal banking agencies, 

12 shall, by rule, establish capital requirements for 

13 the ratio of equity capital to total consolidated 

14 assets for all financial institutions. 

15 (B) LIMITATIONS.— 

16 (i) IN GENERAL.—In no case may the 

17 requirements issued under this subsection 

18 require any financial institution with more 

19 than $50,000,000,000 in total consolidated 

20 assets to have a ratio of less than 8 per21 cent of equity capital to total consolidated 

22 assets. 

23 (ii) COMPARABILITY.—The equity 

24 capital requirement issued under this sub25 section for any financial institution with 


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1 $50,000,000,000 or less in total consoli2 dated assets shall be comparable to the re3 quirements established by the appropriate 

4 Federal banking agencies under the 

5 prompt corrective actions regulations im6 plementing section 38 of the Federal De7 posit Insurance Act (12 U.S.C. 1831o) and 

8 under the capital adequacy regulations im9 plementing section 5 of the Bank Holding 

10 Company Act of 1956 (12 U.S.C. 1844), 

11 that were in effect as of May 1, 2013. 

12 (2) CAPITAL SURCHARGE FOR THE LARGEST FI13 NANCIAL INSTITUTIONS.— 

14 (A) STUDY REQUIRED.— 

15 (i) IN GENERAL.—The Corporation 

16 shall study historical equity capital ratios 

17 chosen by large depository institutions be18 fore the advent of the Federal Reserve 

19 System, Federal deposit insurance, and the 

20 Federal income tax encouraged deposi21 tories to favor more highly leveraged de22 posit and debt funding. 

23 (ii) REPORT TO CONGRESS.—Not later 

24 than 90 days after the date of enactment 

25 of this Act, the Corporation shall issue a 


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1 report to the Committee on Banking, 

2 Housing, and Urban Affairs of the Senate 

3 and the Committee on Financial Services 

4 of the House of Representatives regarding 

5 the study conducted under clause (i). 

6 (iii) INCORPORATION OF FINDINGS.— 

7 The Corporation, in consultation with the 

8 other Federal banking agencies, shall 

9 structure the capital surcharge for finan10 cial institutions with at least 

11 $500,000,000,000 in total consolidated as12 sets, such that the surcharge fully accounts 

13 for and offsets any distortion of capital lev14 els by the Government policies described in 

15 clause (i). 

16 (B) RULES.—Not later than 1 year after 

17 the date of completion of the study required by 

18 subparagraph (A), the appropriate Federal 

19 banking agency, in consultation with the other 

20 Federal banking agencies, shall, by rule, estab21 lish equity capital surcharges for each financial 

22 institution having at least $500,000,000,000 in 

23 total consolidated assets. 

24 (C) INCREASES AUTHORIZED.—Capital re25 quirements established under this paragraph 


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1 may increase continuously as a percentage of 

2 total consolidated assets as the total consoli3 dated assets of a financial institution increase. 

4 (D) REQUIRED AMOUNT.—The surcharge 

5 imposed under the rules issued under this para6 graph shall require any financial institution 

7 having at least $500,000,000,000 in total con8 solidated assets to have a ratio of not less than 

9 15 percent of equity capital to total consoli10 dated assets. 

11 (E) ANTI-EVASION.— 

12 (i) IN GENERAL.—Any attempt by a 

13 financial institution to structure any activ14 ity, transaction, or affiliation for the pur15 pose or effect of evading or attempting to 

16 evade the asset threshold that gives rise to 

17 the surcharge provided in subparagraph 

18 (A) shall be considered a violation of the 

19 Federal Deposit Insurance Act, section 24 

20 of the Revised Statutes of the United 

21 States, and the Bank Holding Company 

22 Act of 1956, as applicable to such financial 

23 institution. 

24 (ii) RESTRICTING ACTIVITIES.—Not25 withstanding any other provision of law, if 


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1 the Board, the Corporation, or the Comp2 troller of the Currency has reasonable 

3 cause to believe that a financial institution 

4 or any affiliate thereof has engaged in an 

5 activity, transaction, or affiliation in a 

6 manner that functions as an evasion of the 

7 asset threshold that gives rise to the sur8 charge provided in subparagraph (A) or 

9 otherwise violates such provision, the ap10 propriate Federal banking agency shall 

11 order, after due notice and opportunity for 

12 hearing, the financial institution to re13 strict, restructure, or divest the offending 

14 activities, transactions, or investments. 

15 (3) EFFECTIVE DATE.—The equity capital and 

16 surcharge rules issued under paragraphs (1) and (2) 

17 shall apply with respect to each financial institution 

18 not later than 5 years after the date on which final 

19 rules are published in the Federal Register with re20 spect to that financial institution. 

21 (4) WELL-CAPITALIZED STATUS.— 

22 (A) COMPLIANCE WITH OTHER PROVI23 SIONS.—Any financial institution that meets 

24 the equity capital requirements established 

25 under paragraph (1) or surcharge requirements 


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1 established under paragraph (2) shall be consid2 ered well capitalized for purposes of— 

3 (i) section 38 of the Federal Deposit 

4 Insurance Act (12 U.S.C. 1831o); and 

5 (ii) the early remediation require6 ments established pursuant to section 166 

7 of the Dodd-Frank Wall Street Reform 

8 and Consumer Protection Act (12 U.S.C. 

9 5366). 

10 (B) AGENCY ACTIONS.—Consistent with 

11 this section, the appropriate Federal banking 

12 agency, in consultation with the other Federal 

13 banking agencies, shall, by regulation, establish 

14 the appropriate capital categories for financial 

15 institutions under section 38 of the Federal De16 posit Insurance Act (12 U.S.C. 1831o) and 

17 early remediation requirements established pur18 suant to section 166 of the Dodd-Frank Wall 

19 Street Reform and Consumer Protection Act 

20 (12 U.S.C. 5366). 

21 (5) ENHANCED PRUDENTIAL STANDARDS.—The 

22 equity capital and surcharge rules issued under 

23 paragraphs (1) and (2) shall be considered sufficient 

24 to satisfy the risk-based capital requirements and le25 verage limits for purposes of section 165 of the 


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1 Dodd-Frank Wall Street Reform and Consumer Pro2 tection Act (12 U.S.C. 5365). 

3 (b) EQUITY CAPITAL REQUIREMENTS FOR AFFILI4 ATES AND SUBSIDIARIES OF BANK HOLDING COMPA5 NIES.— 

6 (1) IN GENERAL.—Not later than 1 year after 

7 the date of enactment of this Act, notwithstanding 

8 any other provision of law applicable to insured de9 pository institutions, the Board (subject to section 

10 5(c)(3) of the Bank Holding Company Act of 1956 

11 (12 U.S.C. 1844(c)(3)) and section 10(g) of the 

12 Home Owners’ Loan Act (12 U.S.C. 1467a(g))), the 

13 Corporation, and the Comptroller of the Currency 

14 shall each promulgate regulations to establish capital 

15 requirements for each affiliate and subsidiary of a fi16 nancial institution that are no less stringent than 

17 the equity capital requirements established under 

18 subsection (a)(1) or surcharge requirements estab19 lished under subsection (a)(2). 

20 (2) LIMITATION.—Paragraph (1) and the regu21 lations issued under paragraph (1) do not apply in 

22 the case of any financial institution with less than 

23 $50,000,000,000 in total consolidated assets. 

24 (3) AMENDMENT TO BANK HOLDING COMPANY

25 ACT OF 1956.—Section 5(c)(5)(B) of the Bank HoldVerDate Mar 15 2010 22:34 Apr 29, 2013 Jkt 029200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S798.IS S798

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1 ing Company Act of 1956 (12 U.S.C. 

2 1844(c)(5)(B)) is amended— 

3 (A) by striking clauses (i) and (v); 

4 (B) in clause (iv), by striking ‘‘; or’’ and 

5 inserting a period; 

6 (C) in clause (iii), by inserting ‘‘or’’ after 

7 the semicolon; and 

8 (D) by redesignating clauses (ii) through 

9 (iv) as clauses (i) through (iii), respectively. 

10 (4) AMENDMENT TO THE HOME OWNER’S LOAN

11 ACT.—The Home Owner’s Loan Act (15 U.S.C. 

12 1461 et seq.) is amended— 

13 (A) in section 2 (12 U.S.C. 1462) by add14 ing at the end the following: 

15 ‘‘(12) FUNCTIONALLY REGULATED AFFIL16 IATE.—The term ‘functionally regulated affiliate’ 

17 means, with respect to a savings association, any af18 filiate of such savings association that is a company 

19 described in section 5(c)(5)(B) of the Bank Holding 

20 Company Act of 1956 (12 U.S.C. 1844(c)(5)(B)).’’; 

21 and 

22 (B) in section 10(g) (12 U.S.C. 1467a(g)) 

23 by adding at the end the following: 

24 ‘‘(6) CAPITAL FOR FUNCTIONALLY REGULATED

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1 FILIATES.—Notwithstanding section 3(b)(1) of the 

2 Terminating Bailouts for Taxpayer Fairness Act of 

3 2013, the Board may not, by regulation, guideline, 

4 order, or otherwise, prescribe or impose any capital 

5 or capital adequacy rules, guidelines, standards, or 

6 requirements on any functionally regulated sub7 sidiary of a savings and loan holding company or 

8 functionally regulated affiliate of a savings associa9 tion that— 

10 ‘‘(A) is not a depository institution; and 

11 ‘‘(B) is— 

12 ‘‘(i) in compliance with the applicable 

13 capital requirements of its Federal regu14 latory authority (including the Securities 

15 and Exchange Commission) or State insur16 ance authority; 

17 ‘‘(ii) properly registered as an invest18 ment adviser under the Investment Advis19 ers Act of 1940, or with any State; or 

20 ‘‘(iii) licensed as an insurance agent 

21 with the appropriate State insurance au22 thority.’’. 

23 (c) SPECIFIC ELEMENTS OF CAPITAL REQUIRE24 MENTS.—For purposes of calculating— 


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1 (1) equity capital requirements under this sec2 tion, equity capital shall consist of tangible common 

3 equity (defined as common stockholders’ equity less 

4 goodwill), deferred tax assets, accumulated other 

5 comprehensive income, treasury stock, and intan6 gible assets plus retained earnings; and 

7 (2) total consolidated assets under this section, 

8 derivative exposures shall include— 

9 (A) the fair value of the derivative expo10 sures without recognizing the benefits of any 

11 netting arrangement, unless— 

12 (i) the netting arrangement is docu13 mented under a formal master netting 

14 agreement or other formal arrangement 

15 with a derivatives clearing organization; 

16 and 

17 (ii) the financial institution, as a mat18 ter of ongoing business practice, exchanges 

19 collateral on a daily basis for the fulfill20 ment of variation margin requirements on 

21 a net basis, and fulfills all contractual pay22 ment requirements, including payments for 

23 contract termination, on a net basis, with 

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1 sures covered by the formal arrangement; 

2 and 

3 (B) off-balance sheet assets— 

4 (i) defined as any assets in which the 

5 financial institution has guaranteed per6 formance by another party or provided a li7 quidity backstop should another party be 

8 unable to perform under the contractual 

9 obligation; and 

10 (ii) excluding commitments to lend, 

11 whereby certain provisions and or cov12 enants exist that limit the risk to the bank 

13 holding company with respect to future 

14 draws of liquidity. 

15 (d) RISK-BASED CAPITAL REQUIREMENTS PER16 MITTED.— 

17 (1) RULE OF CONSTRUCTION.—Except as pro18 vided in paragraph (2), nothing in this section shall 

19 be interpreted to prevent any appropriate Federal 

20 banking agency from establishing supplemental risk21 based capital requirements for any financial institu22 tion with more than $20,000,000,000 in total con23 solidated assets, or any affiliate or subsidiary of 

24 such institutions for the purpose of measuring the 


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1 relative risk of certain assets and preventing invest2 ment in excessive amounts of riskier assets. 

3 (2) LIMITATION.— 

4 (A) JOINT DETERMINATION.—An appro5 priate Federal banking agency may not imple6 ment risk-based capital requirements with re7 spect to a financial institution with more than 

8 $20,000,000,000, unless all appropriate Federal 

9 banking agencies agree that bank supervision is 

10 insufficient to prevent the excessive concentra11 tion of riskier assets. 

12 (B) REPORT TO CONGRESS.—Before pro13 posing risk based capital rules described in this 

14 subsection, the appropriate Federal banking 

15 agencies shall submit a joint report to the Com16 mittee on Banking, Housing, and Urban Affairs 

17 of the Senate and the Committee on Financial 

18 Services of the House of Representatives detail19 ing the deficiency in supervisory tools in pre20 venting investment in excessive amounts of 

21 riskier assets and how risk based capital will be 

22 used. The appropriate Federal banking agencies 

23 may establish supplemental risk-based capital 

24 requirements that do not replace the equity 

25 capital requirements required by this Act not 


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1 earlier than 90 days after the date of submis2 sion of the report under this subparagraph. 

3 (e) TREATMENT OF BASEL III INTERNATIONAL AC4 CORD.—The Board, the Corporation, and the Comptroller 

5 of the Currency shall be prohibited from any further im6 plementation of any rules of the Federal banking agencies 

7 regarding ‘‘Basel III: A Global Regulatory Framework for 

8 More Resilient Banks and Banking Systems’’. 

9 SEC. 4. PROHIBITION ON SUBSIDY TRANSFERS. 

10 Section 23A of the Federal Reserve Act (12 U.S.C. 

11 371c) is amended— 

12 (1) in subsection (a), by adding at the end the 

13 following: 

14 ‘‘(5) PROHIBITION ON TRANSACTIONS BY IN15 SURED DEPOSITORY INSTITUTIONS WITH AFFILI16 ATES OR SUBSIDIARIES.— 

17 ‘‘(A) AFFILIATE TRANSACTIONS PROHIB18 ITED.—Except as provided in subparagraph 

19 (B), only an insured depository institution that 

20 is a member bank or an affiliate or subsidiary 

21 of a member bank may engage in a covered 

22 transaction with another affiliate or subsidiary 

23 that is not an insured depository institution. 

24 ‘‘(B) EXCEPTIONS.—Notwithstanding sub25 paragraph (A), an insured depository institution 


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1 that is not a member bank or an affiliate or 

2 subsidiary of a member bank may— 

3 ‘‘(i) engage in lawful dividend pay4 ments to its holding company; or 

5 ‘‘(ii) make sales of property or securi6 ties to, or accept infusions of capital or 

7 other distributions from, its parent holding 

8 company, consistent with section 38A of 

9 the Federal Deposit Insurance Act (12 

10 U.S.C. 1831p).’’; and 

11 (2) in subsection (b)— 

12 (A) by redesignating paragraphs (8) 

13 through (11) as paragraphs (9) through (12), 

14 respectively; and 

15 (B) by inserting after paragraph (7) the 

16 following: 

17 ‘‘(8) the term ‘member bank’ means a member 

18 bank having less than $50,000,000,000 of total con19 solidated assets;’’. 

20 SEC. 5. LIMITATION ON THE FEDERAL SAFETY NET. 

21 (a) PROHIBITION AGAINST GOVERNMENT ASSIST22 ANCE TO NON-BANKS.—Except in connection with the 

23 resolution of any insured depository institution or finan24 cial company for which the Corporation has been ap25 pointed as receiver, no affiliate or subsidiary of a financial 


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1 institution, or affiliate of an insured depository institution 

2 or nonbank financial institution may receive any assist3 ance through— 

4 (1) asset purchases made by the United States 

5 Government, loans from the United States Govern6 ment, investments in debt or equity made by the 

7 United States Government, or capital injections 

8 from the United States Government; 

9 (2) the Exchange Stabilization Fund, as estab10 lished under section 2 of the Gold Reserve Act of 

11 1934; 

12 (3) the Deposit Insurance Fund established 

13 under section 11(a)(4) of the Federal Deposit Insur14 ance Act (12 U.S.C. 1821(a)(4)); 

15 (4) the Board, pursuant to its authority under 

16 section 10B, 13, or 13A of the Federal Reserve Act 

17 (12 U.S.C. 347b, 342, and 343); or 

18 (5) the Board, pursuant to its authority under 

19 the third paragraph of section 13 of the Federal Re20 serve Act (12 U.S.C. 343). 

21 (b) EXCLUSION FOR MONETARY POLICY.—Sub22 section (a) shall not apply to transactions or operations 

23 implementing monetary policy matters under the direction 

24 of the Federal Open Market Committee or the Board of 

25 Governors of the Federal Reserve System. 


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1 (c) LENDING TO SYSTEMICALLY IMPORTANT FINAN2 CIAL MARKET UTILITIES.—Section 806 of the Dodd3 Frank Wall Street Reform and Consumer Protection Act 

4 (12 U.S.C. 6455) is amended— 

5 (1) by striking subsections (a) through (c); and 

6 (2) redesignating subsections (d) and (e) as 

7 subsections (a) and (b), respectively. 

8 (d) TERMINATION OF SYSTEMIC RISK EXEMPTION.— 

9 Section 13(c)(4)(G) of the Federal Deposit Insurance Act 

10 (12 U.S.C. 1823(c)(4)) is amended— 

11 (1) by striking subparagraph (G); and 

12 (2) by redesignating subparagraph (H) as sub13 paragraph (G). 

14 SEC. 6. RELIEF FOR COMMUNITY BANKS AND SMALL SAV15 INGS ASSOCIATIONS. 

16 (a) RURAL DEFINITION.—For purposes of the rules 

17 of the Bureau of Consumer Financial Protection (in this 

18 section referred to as the ‘‘Bureau’’) regarding qualified 

19 mortgages for purposes of section 129C(c)(2) of the Truth 

20 in Lending Act, the definition of the term ‘‘rural’’ means 

21 any area other than— 

22 (1) a city or town that has a population of 

23 greater than 50,000 inhabitants; and 

24 (2) any urbanized area contiguous and adjacent 

25 to a city or town described in paragraph (1). 


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1 (b) SECURITIES EXCHANGE ACT OF 1934.—The Se2 curities Exchange Act of 1934 (15 U.S.C. 78a et seq.) 

3 is amended— 

4 (1) in section 12(g) (15 U.S.C. 78l(g))— 

5 (A) in paragraph (1)(B), by inserting after 

6 ‘‘is a bank’’ the following: ‘‘, a savings and loan 

7 holding company (as defined in section 10 of 

8 the Home Owners’ Loan Act),’’; and 

9 (B) in paragraph (4), by inserting after 

10 ‘‘case of a bank’’ the following: ‘‘, a savings and 

11 loan holding company (as defined in section 10 

12 of the Home Owners’ Loan Act),’’; and 

13 (2) in section 15(d), by striking ‘‘case of bank’’ 

14 and inserting the following: ‘‘case of a bank, a sav15 ings and loan holding company (as defined in section 

16 10 of the Home Owners’ Loan Act),’’. 

17 (c) FEDERAL RESERVE BOARD.—The policy state18 ment of the Board in the Small Bank Holding Company 

19 Statement found at Part 225 of the appendix to title 12, 

20 Code of Federal Regulations (or any successor thereto), 

21 shall apply to financial institutions that are otherwise sub22 ject to that policy statement with consolidated assets of 

23 more than $5,000,000,000. 

24 (d) MUTUAL HOLDING COMPANY DIVIDEND WAIV25 ERS.—Notwithstanding the rule of the Board regarding 


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1 Mutual Holding Company Dividend Waivers in section 

2 239.63 of title 12, Code of Federal Regulations (or any 

3 successor thereto), grandfathered mutual holding compa4 nies and all other mutual holding companies shall be per5 mitted to waive the receipt of dividends declared on the 

6 common stock of their bank or mid-size holding compa7 nies. 

8 (e) EXAMINATION OMBUDSMAN.— 

9 (1) IN GENERAL.—The Federal Financial Insti10 tutions Examination Council Act of 1978 (12 U.S.C. 

11 3301 et seq.) is amended by adding at the end the 

12 following: 

13 ‘‘SEC. 1012. OFFICE OF EXAMINATION OMBUDSMAN. 

14 ‘‘(a) ESTABLISHMENT.—There is established in the 

15 Council an Office of Examination Ombudsman. 

16 ‘‘(b) HEAD OF OFFICE.—There is established the po17 sition of the Ombudsman, who shall serve as the head of 

18 the Office of Examination Ombudsman, and who shall be 

19 hired separately by the Council and shall be independent 

20 from any member agency of the Council. 

21 ‘‘(c) STAFFING.—The Ombudsman is authorized to 

22 hire staff to support the activities of the Office of Exam23 ination Ombudsman. 

24 ‘‘(d) DUTIES.—The Ombudsman shall— 


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1 ‘‘(1) receive and, at the Ombudsman’s discre2 tion, investigate complaints from financial institu3 tions, their representatives, or another entity acting 

4 on behalf of such institutions, concerning examina5 tions, examination practices, or examination reports; 

6 ‘‘(2) hold meetings, at least once every 3 

7 months and in locations designed to encourage par8 ticipation from all sections of the United States, 

9 with financial institutions, their representatives, or 

10 another entity acting on behalf of such institutions, 

11 to discuss examination procedures, examination 

12 practices, or examination policies; 

13 ‘‘(3) review examination procedures of the Fed14 eral financial institutions regulatory agencies to en15 sure that the written examination policies of those 

16 agencies are being followed in practice and adhere to 

17 the standards for consistency established by the 

18 Council; 

19 ‘‘(4) conduct a continuing and regular program 

20 of examination quality assurance for all examination 

21 types conducted by the Federal financial institutions 

22 regulatory agencies; 

23 ‘‘(5) process any supervisory appeal initiated 

24 under section 1015 or section 309(e) of the Riegle 


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1 Community Development and Regulatory Improve2 ment Act of 1994; and 

3 ‘‘(6) report annually to the Committee on Fi4 nancial Services of the House of Representatives, the 

5 Committee on Banking, Housing, and Urban Affairs 

6 of the Senate, and the Council, on the reviews car7 ried out pursuant to paragraphs (3) and (4), includ8 ing compliance with the requirements set forth in 

9 section 1012 regarding timeliness of examination re10 ports, and the Council’s recommendations for im11 provements in examination procedures, practices, 

12 and policies. 

13 ‘‘(e) CONFIDENTIALITY.—The Ombudsman shall 

14 keep confidential all meetings, discussions, and informa15 tion provided by financial institutions.’’. 

16 (2) DEFINITION.—Section 1003 of the Federal 

17 Financial Institutions Examination Council Act of 

18 1978 (12 U.S.C. 3302) is amended— 

19 (A) in paragraph (2), by striking ‘‘and’’ at 

20 the end; 

21 (B) in paragraph (3), by adding ‘‘and’’ at 

22 the end; and 

23 (C) by adding at the end the following: 

24 ‘‘(4) the term ‘Ombudsman’ means the Om25 budsman established under section 1012.’’. 


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1 (f) EXCEPTION TO ANNUAL WRITTEN PRIVACY NO2 TICE REQUIREMENT UNDER THE GRAMM-LEACH-BLILEY

3 ACT.—Section 503 of the Gramm-Leach-Bliley Act (15 

4 U.S.C. 6803) is amended by adding at the end the fol5 lowing: 

6 ‘‘(f) EXCEPTION TO ANNUAL WRITTEN NOTICE RE7 QUIREMENT.— 

8 ‘‘(1) IN GENERAL.—A financial institution de9 scribed in paragraph (2) shall not be required to 

10 provide an annual written disclosure under this sec11 tion, until such time as the financial institution fails 

12 to comply with subparagraph (A), (B), or (C) of 

13 paragraph (1). 

14 ‘‘(2) COVERED INSTITUTIONS.—Paragraph (1) 

15 applies with respect to a financial institution that— 

16 ‘‘(A) provides nonpublic personal informa17 tion in accordance with the provisions of sub18 section (b)(2) or (e) of section 502 or regula19 tions prescribed under section 504(b); 

20 ‘‘(B) has not changed its policies and prac21 tices with respect to disclosing nonpublic per22 sonal information from the policies and prac23 tices that were disclosed in the most recent dis24 closure sent to consumers in accordance with 

25 this section; and 


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1 ‘‘(C) otherwise provides customers access 

2 to such most recent disclosure in electronic or 

3 other form permitted by regulations prescribed 

4 under section 504.’’. 

5 (g) EXEMPTION FROM SMALL BUSINESS DATA COL6 LECTION.—Section 704B(h)(1) of the Equal Credit Op7 portunity Act (15 U.S.C. 1691c–2(h)(1)) is amended by 

8 inserting ‘‘with more than $10,000,000,000 in total con9 solidated assets’’ after ‘‘entity’’. 

10 (h) DODD-FRANK.—Section 171(b)(5)(C) of the 

11 Dodd-Frank Wall Street Reform and Consumer Protec12 tion Act (12 U.S.C. 5371(b)(5)(C)) is amended by insert13 ing before the period at the end ‘‘or savings and loan hold14 ing company with less than $500,000,000 in total consoli15 dated assets’’. 

Æ 


tkelley on DSK3SPTVN1PROD with BILLS