I 

115TH CONGRESS 

2D SESSION H. R. 4790 

To amend the Volcker rule to give the Board of Governors of the Federal 

Reserve System sole rulemaking authority, to exclude community banks 

from the requirements of the Volcker rule, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 12, 2018 

Mr. HILL introduced the following bill; which was referred to the Committee 

on Financial Services 

A BILL 

To amend the Volcker rule to give the Board of Governors 

of the Federal Reserve System sole rulemaking authority, 

to exclude community banks from the requirements of 

the Volcker rule, 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. RULEMAKING AUTHORITY UNDER THE 

4 VOLCKER RULE. 

5 (a) IN GENERAL.—Section 13(b) of the Bank Hold6 ing Company Act of 1956 (12 U.S.C. 1851(b)) is amend7 ed— 


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1 (1) in the subsection heading, by striking ‘‘AND

2 RULEMAKING’’ and inserting ‘‘, RULEMAKING, EX3 AMINATIONS, AND ENFORCEMENT’’; 

4 (2) by amending paragraph (2) to read as fol5 lows: 

6 ‘‘(2) RULEMAKING.—The Board shall have sole 

7 authority to— 

8 ‘‘(A) issue regulations under this section 

9 after the date of the enactment of this para10 graph; and 

11 ‘‘(B) amend any regulations issued under 

12 this section before, on, or after such date.’’; and 

13 (3) by adding at the end the following new 

14 paragraph: 

15 ‘‘(3) EXAMINATION AND ENFORCEMENT AU16 THORITY.— 

17 ‘‘(A) PRIMARY FEDERAL BANKING AGEN18 CY.—The primary Federal banking agency for a 

19 banking entity shall have sole authority to con20 duct examinations of all affiliates of the bank21 ing group to ensure compliance with this sec22 tion and to enforce the requirements of this sec23 tion. The primary Federal banking agency shall 

24 keep the Board informed of all examinations of 

25 and any proposed supervisory or enforcement 


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1 actions against any affiliate of the banking enti2 ty and shall ensure that all actions taken 

3 against any affiliate of the banking group are 

4 consistent with the Board’s interpretation of 

5 this section and rules promulgated thereunder. 

6 ‘‘(B) DEFINITIONS.—For purposes of this 

7 paragraph, the term ‘primary Federal banking 

8 agency’ means, with respect to any banking 

9 group, the appropriate Federal banking agency 

10 for an affiliate within the banking group with 

11 the highest amount of unconsolidated assets as 

12 of the most recent quarter.’’. 

13 (b) CONFORMING AMENDMENTS.—Section 13 of the 

14 Bank Holding Company Act of 1956 (12 U.S.C. 1851) 

15 is amended— 

16 (1) by striking ‘‘the appropriate Federal bank17 ing agencies, the Securities and Exchange Commis18 sion, and the Commodity Futures Trading Commis19 sion,’’ each place it appears and inserting ‘‘the 

20 Board’’; 

21 (2) by striking ‘‘appropriate Federal banking 

22 agencies, the Securities and Exchange Commission, 

23 and the Commodity Futures Trading Commission’’ 

24 and inserting ‘‘Board’’; 


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1 (3) in subsection (c)(5), by striking ‘‘Notwith2 standing paragraph (2)’’ and all that follows 

3 through ‘‘provided in subsection (b)(2),’’ and insert4 ing ‘‘The Board shall have the authority’’; 

5 (4) in subsection (d)(1)— 

6 (A) in subparagraph (F)(ii)— 

7 (i) by striking ‘‘the appropriate Fed8 eral banking agencies’’ and inserting ‘‘the 

9 Board’’; and 

10 (ii) by striking ‘‘have not jointly’’ and 

11 inserting ‘‘has not’’; and 

12 (B) in subparagraph (G)(viii), by striking 

13 ‘‘appropriate Federal banking agencies, the Se14 curities and Exchange Commission, or the Com15 modity Futures Trading Commission,’’ each 

16 place it appears and inserting ‘‘Board’’; and 

17 (5) in subsection (e)(2)— 

18 (A) by striking ‘‘an appropriate Federal 

19 banking agency, the Securities and Exchange 

20 Commission, or the Commodity Futures Trad21 ing Commission, as appropriate,’’ and inserting 

22 ‘‘the Board’’; and 

23 (B) by striking ‘‘under the respective agen24 cy’s jurisdiction’’. 


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1 SEC. 2. EXCLUSION OF COMMUNITY BANKS FROM VOLCKER 

2 RULE. 

3 Section 13(h)(1) of the Bank Holding Company Act 

4 of 1956 (12 U.S.C. 1851(h)(1)) is amended— 

5 (1) in subparagraph (D), by redesignating 

6 clauses (i) and (ii) as subclauses (I) and (II), respec7 tively, and moving such subclauses 2 ems to the 

8 right; 

9 (2) by redesignating subparagraphs (A), (B), 

10 (C), and (D) as clauses (i), (ii), (iii), and (iv), re11 spectively, and moving such clauses 2 ems to the 

12 right; 

13 (3) by striking ‘‘The term’’ and inserting the 

14 following: 

15 ‘‘(A) IN GENERAL.—The term’’; and 

16 (4) by adding at the end the following: 

17 ‘‘(B) EXCLUSION.—Notwithstanding sub18 paragraph (A), the term ‘banking entity’ does 

19 not include any entity that has total consoli20 dated assets of $10,000,000,000 or less.’’. 

Æ 


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