I 

115TH CONGRESS 

2D SESSION H. R. 4746 

To amend the Dodd-Frank Wall Street Reform and Consumer Protection 

Act to specify when bank holding companies may be subject to certain 

enhanced supervision. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 9, 2018 

Mrs. BEATTY introduced the following bill; which was referred to the 

Committee on Financial Services 

A BILL 

To amend the Dodd-Frank Wall Street Reform and Consumer Protection Act to specify when bank holding companies may be subject to certain enhanced supervision. 

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

3 SECTION 1. ENHANCED SUPERVISION OF CERTAIN BANK 

4 HOLDING COMPANIES. 

5 (a) TABLE OF CONTENTS.—The table of contents for 

6 the Dodd-Frank Wall Street Reform and Consumer Pro7 tection Act (12 U.S.C. 5301 et seq.) is amended by strik8 ing the item relating to section 113 and inserting the fol9 lowing: 


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‘‘Sec. 113. Authority to require enhanced supervision and regulation of certain 

nonbank financial companies and certain bank holding companies.’’. 

1 (b) REVISIONS TO COUNCIL AUTHORITY.— 

2 (1) PURPOSES AND DUTIES.—Section 112 of 

3 the Dodd-Frank Wall Street Reform and Consumer 

4 Protection Act (12 U.S.C. 5322) is amended in sub5 section (a)(2)(I) by inserting before the semicolon ‘‘, 

6 which have been the subject of a final determination 

7 under section 113’’. 

8 (2) BANK HOLDING COMPANY DESIGNATION.— 

9 Section 113 of the Dodd-Frank Wall Street Reform 

10 and Consumer Protection Act (12 U.S.C. 5323) is 

11 amended— 

12 (A) by amending the heading for such sec13 tion to read as follows: ‘‘AUTHORITY TO RE14 QUIRE ENHANCED SUPERVISION AND REG15 ULATION OF CERTAIN NONBANK FINAN16 CIAL COMPANIES AND CERTAIN BANK

17 HOLDING COMPANIES’’; 

18 (B) by redesignating subsections (c), (d), 

19 (e), (f), (g), (h), and (i) as subsections (d), (e), 

20 (f), (g), (h), (i), and (j), respectively; 

21 (C) by inserting after subsection (b) the 

22 following: 


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1 ‘‘(c) BANK HOLDING COMPANIES SUBJECT TO EN2 HANCED SUPERVISION AND PRUDENTIAL STANDARDS

3 UNDER SECTION 165.— 

4 ‘‘(1) IN GENERAL.—There is a determination 

5 that bank holding companies with total consolidated 

6 assets equal to or greater than $250,000,000,000 

7 shall be subject to enhanced supervision and pruden8 tial standards by the Board of Governors, in accord9 ance with section 165. 

10 ‘‘(2) ENHANCED SUPERVISION FOR CERTAIN

11 BANK HOLDING COMPANIES.— 

12 ‘‘(A) DETERMINATION.—The Council shall 

13 review each bank holding company with total 

14 consolidated assets equal to or greater than 

15 $50,000,000,000 but less than 

16 $250,000,000,000 to determine whether such 

17 company shall be subject to enhanced super18 vision and prudential standards by the Board of 

19 Governors, in accordance with section 165. 

20 Such determination shall be made if the Coun21 cil, on a non-delegable basis and by a vote of 

not fewer than 2 22 ⁄3 of the voting members then 

23 serving, including an affirmative vote by the 

24 Chairperson, determines that material financial 

25 distress at the bank holding company, or the 


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1 nature, scope, size, scale, concentration, inter2 connectedness, or mix of the activities of the 

3 bank holding company, could pose a threat to 

4 the financial stability of the United States. 

5 ‘‘(B) CONSIDERATIONS.—In making a de6 termination under subparagraph (A), the Coun7 cil shall consider the following: 

8 ‘‘(i) The size of the bank holding com9 pany. 

10 ‘‘(ii) The interconnectedness of the 

11 bank holding company. 

12 ‘‘(iii) The extent of readily available 

13 substitutes or financial institution infra14 structure for the services of the bank hold15 ing company. 

16 ‘‘(iv) The global cross-jurisdictional 

17 activity of the bank holding company. 

18 ‘‘(v) The complexity of the bank hold19 ing company. 

20 ‘‘(C) REVIEW OF DETERMINATION.—With 

21 respect to a bank holding company described 

22 under subparagraph (A) that is not subject to 

23 enhanced supervision and prudential standards, 

24 the Council shall perform an additional review 

25 under subparagraph (A) of such company if— 


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1 ‘‘(i) the Council finds that the nature, 

2 scope, size, scale, concentration, inter3 connectedness, or mix of the activities of 

4 the bank holding company have signifi5 cantly changed and the company should be 

6 reviewed again to determine if it may pose 

7 a threat to the financial stability of the 

8 United States; or 

9 ‘‘(ii) a period of 36 months has 

10 passed since the bank holding company 

11 was last reviewed under subparagraph (A). 

12 ‘‘(D) NOTIFICATION OF REVIEW.—If, after 

13 a review under this paragraph, the Council de14 termines that a bank holding company de15 scribed under subparagraph (A) shall be subject 

16 to enhanced supervision and prudential stand17 ards, the Council shall provide the bank holding 

18 company with written notice of such determina19 tion and an explanation of the Council’s rea20 soning for such determination. 

21 ‘‘(E) TERMINATION OF ENHANCED SUPER22 VISION AND PRUDENTIAL STANDARDS.—If, with 

23 respect to a bank holding company described 

24 under subparagraph (A) that is subject to en25 hanced supervision and prudential standards, 


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1 the Council finds, on a non-delegable basis and 

by a vote of not fewer than 2 2 ⁄3 of the voting 

3 members then serving, including an affirmative 

4 vote by the Chairperson, that material financial 

5 distress at the bank holding company, or the 

6 nature, scope, size, scale, concentration, inter7 connectedness, or mix of the activities of the 

8 bank holding company, do not pose a threat to 

9 the financial stability of the United States, such 

10 company shall no longer be subject to enhanced 

11 supervision and prudential standards.’’; 

12 (D) in subsection (d), as so redesignated— 

13 (i) in paragraph (1)(A), by striking 

14 ‘‘subsection (a)(2) or (b)(2)’’ and inserting 

15 ‘‘subsection (a)(2), (b)(2), or (c)(2)’’; and 

16 (ii) in paragraph (4), by striking 

17 ‘‘Subsections (d) through (h)’’ and insert18 ing ‘‘Subsections (e) through (i)’’; 

19 (E) in subsections (f), (g), (h), (i), and (j), 

20 as so redesignated— 

21 (i) by striking ‘‘subsections (a) and 

22 (b)’’ each place such term appears and in23 serting ‘‘subsections (a), (b), and (c)’’; and 

24 (ii) by striking ‘‘nonbank financial 

25 company’’ each place such term appears 


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1 and inserting ‘‘bank holding company for 

2 which there has been a determination 

3 under subsection (c) or nonbank financial 

4 company’’; 

5 (F) in subsection (g), as so redesignated, 

6 by striking ‘‘subsection (e)’’ and inserting ‘‘sub7 section (f)’’; 

8 (G) in subsection (h), as so redesignated, 

9 by striking ‘‘subsection (a), (b), or (c)’’ and in10 serting ‘‘subsection (a), (b), (c), or (d)’’; and 

11 (H) in subsection (i), as so redesignated, 

12 by striking ‘‘subsection (d)(2), (e)(3), or (f)(5)’’ 

13 and inserting ‘‘subsection (e)(2), (f)(3), or 

14 (g)(5)’’. 

15 (3) ENHANCED SUPERVISION.—Section 115 of 

16 the Dodd-Frank Wall Street Reform and Consumer 

17 Protection Act (12 U.S.C. 5325) is amended— 

18 (A) in subsection (a)(1), by striking ‘‘large, 

19 interconnected bank holding companies’’ and in20 serting ‘‘bank holding companies which have 

21 been the subject of a final determination under 

22 section 113’’; 

23 (B) in subsection (a)(2)— 

24 (i) in subparagraph (A), by striking 

25 ‘‘or’’ at the end; 


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1 (ii) by striking ‘‘the Council may’’ and 

2 all that follows through ‘‘differentiate’’ and 

3 inserting ‘‘the Council may differentiate’’; 

4 and 

5 (iii) by striking subparagraph (B); 

6 and 

7 (C) in subsection (b)(3), by striking ‘‘sub8 sections (a) and (b) of section 113’’ each place 

9 such term appears and inserting ‘‘subsections 

10 (a), (b), and (c) of section 113’’. 

11 (4) REPORTS.—Section 116(a) of the Dodd12 Frank Wall Street Reform and Consumer Protection 

13 Act (12 U.S.C. 5326(a)) is amended by striking 

14 ‘‘with total consolidated assets of $50,000,000,000 

15 or greater’’ and inserting ‘‘which has been the sub16 ject of a final determination under section 113’’. 

17 (5) MITIGATION.—Section 121 of the Dodd18 Frank Wall Street Reform and Consumer Protection 

19 Act (12 U.S.C. 5331) is amended— 

20 (A) in subsection (a), by striking ‘‘with 

21 total consolidated assets of $50,000,000,000 or 

22 more’’ and inserting ‘‘which has been the sub23 ject of a final determination under section 

24 113’’; and 


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1 (B) in subsection (c), by striking ‘‘sub2 section (a) or (b) of section 113’’ and inserting 

3 ‘‘subsection (a), (b), or (c) of section 113’’. 

4 (6) OFFICE OF FINANCIAL RESEARCH.—Section 

5 155 of the Dodd-Frank Wall Street Reform and 

6 Consumer Protection Act (12 U.S.C. 5345) is 

7 amended in subsection (d) by striking ‘‘with total 

8 consolidated assets of $50,000,000,000 or greater’’ 

9 and inserting ‘‘which have been the subject of a final 

10 determination under section 113’’. 

11 (c) REVISIONS TO BOARD AUTHORITY.— 

12 (1) ACQUISITIONS.—Section 163 of the Dodd13 Frank Wall Street Reform and Consumer Protection 

14 Act (12 U.S.C. 5363) is amended by striking ‘‘with 

15 total consolidated assets equal to or greater than 

16 $50,000,000,000’’ each place such term appears and 

17 inserting ‘‘which has been the subject of a final de18 termination under section 113’’. 

19 (2) MANAGEMENT INTERLOCKS.—Section 164 

20 of the Dodd-Frank Wall Street Reform and Con21 sumer Protection Act (12 U.S.C. 5364) is amended 

22 by striking ‘‘with total consolidated assets equal to 

23 or greater than $50,000,000,000’’ and inserting 

24 ‘‘which has been the subject of a final determination 

25 under section 113’’. 


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1 (3) ENHANCED SUPERVISION AND PRUDENTIAL

2 STANDARDS.—Section 165 of the Dodd-Frank Wall 

3 Street Reform and Consumer Protection Act (12 

4 U.S.C. 5365) is amended— 

5 (A) in subsection (a), by striking ‘‘with 

6 total consolidated assets equal to or greater 

7 than $50,000,000,000’’ and inserting ‘‘which 

8 have been the subject of a final determination 

9 under section 113’’; 

10 (B) in subsection (a)(2)— 

11 (i) by striking ‘‘(A) IN GENERAL.—’’; 

12 and 

13 (ii) by striking subparagraph (B); 

14 (C) by striking ‘‘subsections (a) and (b) of 

15 section 113’’ each place such term appears and 

16 inserting ‘‘subsections (a), (b), and (c) of sec17 tion 113’’; and 

18 (D) in subsection (j), by striking ‘‘with 

19 total consolidated assets equal to or greater 

20 than $50,000,000,000’’ and inserting ‘‘which 

21 has been the subject of a final determination 

22 under section 113’’. 

23 (d) EFFECTIVE DATE; EXPEDITED RULEMAKING

24 AUTHORITY.— 


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1 (1) EFFECTIVE DATE.—The amendments made 

2 by this section shall take effect on the earlier of— 

3 (A) the date on which the Financial Sta4 bility Oversight Council issues final regulations 

5 to carry out the amendment made by this sec6 tion; or 

7 (B) the end of the 18-month period begin8 ning on the date of the enactment of this Act. 

9 (2) EXPEDITED RULEMAKING AUTHORITY.— 

10 The Financial Stability Oversight Counsel and the 

11 Board of Governors of the Federal Reserve System 

12 shall— 

13 (A) issue regulations to carry out the 

14 amendments made by this section— 

15 (i) in proposed form, not later than 

16 the end of the 90-day period beginning on 

17 the date of the enactment of this Act; and 

18 (ii) in final form, not later than the 

19 end of the 180-day period beginning on the 

20 date of the enactment of this Act; and 

21 (B) such final regulations shall take effect 

22 not later than the end of the 1-year period be23 ginning on the date of the enactment of this 

24 Act. 


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1 SEC. 2. SENSE OF CONGRESS. 

2 It is the sense of Congress that— 

3 (1) consolidated asset size remains a factor, but 

4 only one of many factors, that should be considered 

5 in determining systemic risk; and 

6 (2) the more objective and complete processes 

7 identified in section 112 of the Dodd-Frank Wall 

8 Street Reform and Consumer Protection Act, as 

9 modified by this Act, represent a more accurate indi10 cator of systemic risk. 

Æ 


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