IB 

Union Calendar No. 508 

112TH CONGRESS 

2D SESSION H. R. 1838 

[Report No. 112–476, Part I] 

To repeal a provision of the Dodd-Frank Wall Street Reform and Consumer 

Protection Act prohibiting any Federal bailout of swap dealers or participants. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 11, 2011 

Ms. HAYWORTH 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 

MAY 11, 2012 

Reported from the Committee on Financial Services with amendments 

[Strike out all after the enacting clause and insert the part printed in italic] 

MAY 11, 2012 

Referral to the Committee on Agriculture extended for a period ending not 

later than May 30, 2012 

MAY 30, 2012 

Referral to the Committee on Agriculture extended for a period ending not 

later than July 16, 2012 

JULY 16, 2012 

Referral to the Committee on Agriculture extended for a period ending not 

later than September 14, 2012 

SEPTEMBER 14, 2012 

Referral to the Committee on Agriculture extended for a period ending not 

later than November 16, 2012 


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NOVEMBER 16, 2012 

The Committee on Agriculture discharged; committed to the Committee of the 

Whole House on the State of the Union and ordered to be printed 

A BILL 

To repeal a provision of the Dodd-Frank Wall Street Reform 

and Consumer Protection Act prohibiting any Federal 

bailout of swap dealers or participants. 


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

3 SECTION 1. REPEAL. 

4 Section 716 of the Dodd-Frank Wall Street Reform 

5 and Consumer Protection Act (15 U.S.C. 8305) is re6 pealed. 

7 SECTION 1. SHORT TITLE. 

8 This Act may be cited as the ‘‘Swaps Bailout Preven9 tion Act’’. 

10 SEC. 2. REFORM OF PROHIBITION ON SWAP ACTIVITY AS11 SISTANCE. 

12 Section 716 of the Dodd-Frank Wall Street Reform 

13 and Consumer Protection Act (15 U.S.C. 8305) is amend14 ed— 

15 (1) in subsection (b), by adding at the end the 

16 following: 

17 ‘‘(3) COVERED DEPOSITORY INSTITUTION.—The 

18 term ‘covered depository institution’ means— 

19 ‘‘(A) an insured depository institution; and 

20 ‘‘(B) a United States uninsured branch or 

21 agency of a foreign bank that has a prudential 

22 regulator.’’; 

23 (2) in subsection (c)— 

24 (A) in the heading for such subsection, by 

25 striking ‘‘INSURED’’ and inserting ‘‘COVERED’’; 


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1 (B) by striking ‘‘an insured’’ and inserting 

2 ‘‘a covered’’; 

3 (C) by striking ‘‘such insured’’ and insert4 ing ‘‘such covered’’; and 

5 (D) by striking ‘‘or savings and loan hold6 ing company’’ and inserting ‘‘savings and loan 

7 holding company, or foreign banking organiza8 tion (as such term is defined under Regulation 

9 K (12 C.F.R. 211.21(o)))’’; 

10 (3) by amending subsection (d) to read as fol11 lows: 

12 ‘‘(d) ONLY BONA FIDE HEDGING AND TRADITIONAL

13 BANK ACTIVITIES PERMITTED.— 

14 ‘‘(1) IN GENERAL.—The prohibition in sub15 section (a) shall not apply to any covered depository 

16 institution that limits its swap and security-based 

17 swap activities to the following: 

18 ‘‘(A) HEDGING AND OTHER SIMILAR RISK

19 MITIGATION ACTIVITIES.—Hedging and other 

20 similar risk mitigating activities directly related 

21 to the covered depository institution’s activities. 

22 ‘‘(B) NON-STRUCTURED FINANCE SWAP AC23 TIVITIES.—Acting as a swaps entity for swaps or 

24 security-based swaps other than a structured fi25 nance swap. 


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1 ‘‘(C) CERTAIN STRUCTURED FINANCE SWAP

2 ACTIVITIES.—Acting as a swaps entity for swaps 

3 or security-based swaps that are structured fi4 nance swaps, if— 

5 ‘‘(i) such structured finance swaps are 

6 undertaken for hedging or risk management 

7 purposes; or 

8 ‘‘(ii) each asset-backed security under9 lying such structured finance swaps is of a 

10 credit quality and of a type or category 

11 with respect to which the prudential regu12 lators have jointly adopted rules author13 izing swap or security-based swap activity 

14 by covered depository institutions. 

15 ‘‘(2) DEFINITIONS.—For purposes of this sub16 section: 

17 ‘‘(A) STRUCTURED FINANCE SWAP.—The 

18 term ‘structured finance swap’ means a swap or 

19 security-based swap based on an asset-backed se20 curity (or group or index primarily comprised of 

21 asset-backed securities). 

22 ‘‘(B) ASSET-BACKED SECURITY.—The term 

23 ‘asset-backed security’ has the meaning given 

24 such term under section 3(a) of the Securities 

25 Exchange Act of 1934 (15 U.S.C. 78c(a)).’’; 


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1 (4) in subsection (e), by striking ‘‘an insured’’ 

2 and inserting ‘‘a covered’’; 

3 (5) in subsection (f)— 

4 (A) by striking ‘‘an insured’’ and inserting 

5 ‘‘a covered’’; and 

6 (B) by striking ‘‘the insured’’ each place 

7 such term appears and inserting ‘‘the covered’’; 

8 (6) in subsection (g), by striking ‘‘insured’’ and 

9 inserting ‘‘covered’’; 

10 (7) in subsection (m), by striking ‘‘An insured’’ 

11 and inserting ‘‘A covered’’; and 

12 (8) by adding at the end the following: 

13 ‘‘(n) FOREIGN SWAP ACTIVITY.— 

14 ‘‘(1) IN GENERAL.—This section shall not apply 

15 to swap or security-based swap activity conducted 

16 outside the United States with a non-U.S. 

17 counterparty by a non-U.S. swaps entity. 

18 ‘‘(2) DEFINITIONS.—For purposes of this sub19 section, the terms ‘non-U.S. swaps entity’ and ‘non20 U.S. counterparty’ mean a swaps entity or 

21 counterparty, respectively, that is licensed, in the case 

22 of a foreign branch of a United States depository in23 stitution, or organized under the laws of a jurisdic24 tion outside the United States.’’. 


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Amend the title so as to read: ‘‘A bill to amend provisions in section 716 of the Dodd-Frank Wall Street Reform and Consumer Protection Act relating to Federal 

assistance for swaps entities.’’. 


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Union Calendar No. 508 

112TH CONGRESS 

2D SESSION H. R. 1838 

[Report No. 112–476, Part I] 

A BILL 

To repeal a provision of the Dodd-Frank Wall 

participants. hibiting any Federal bailout of swap dealers or Street Reform and Consumer Protection Act proNOVEMBER 16, 2012 

The Committee on Agriculture discharged; committed to 

Union and ordered to be printed the Committee of the Whole House on the State of the 


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