I 

113TH CONGRESS 

1ST SESSION H. R. 3036 

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, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

AUGUST 2, 2013 

Mr. LUETKEMEYER (for himself and Mr. BACHUS) 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, 

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 ‘‘Systemic Risk Des5 ignation Improvement Act of 2013’’. 

6 SEC. 2. TABLE OF CONTENTS. 

7 The table of contents for the Dodd-Frank Wall Street 

8 Reform and Consumer Protection Act (12 U.S.C. 5301 


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1 et seq.) is amended by striking the item relating to section 

2 113 and inserting the following: 

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

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

3 SEC. 3. REVISIONS TO COUNCIL AUTHORITY. 

4 (a) PURPOSES AND DUTIES.—Section 112 of the 

5 Dodd-Frank Wall Street Reform and Consumer Protec6 tion Act (12 U.S.C. 5322) is amended in subsection 

7 (a)(2)(I) by inserting before the semicolon ‘‘, which have 

8 been the subject of a final determination under section 

9 113’’. 

10 (b) BANK HOLDING COMPANY DESIGNATION.—Sec11 tion 113 of the Dodd-Frank Wall Street Reform and Con12 sumer Protection Act (12 U.S.C. 5323) is amended— 

13 (1) by amending the heading for such section to 

14 read as follows: ‘‘AUTHORITY TO REQUIRE EN15 HANCED SUPERVISION AND REGULATION OF

16 CERTAIN NONBANK FINANCIAL COMPANIES

17 AND CERTAIN BANK HOLDING COMPANIES’’; 

18 (2) by redesignating subsections (c), (d), (e), 

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

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

21 (3) by inserting after subsection (b) the fol22 lowing: 


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

3 UNDER SECTION 165.— 

4 ‘‘(1) DETERMINATION.—The Council, on a nondelegable basis and by a vote of not fewer than 2 5 ⁄3

6 of the voting members then serving, including an af7 firmative vote by the Chairperson, may determine 

8 that a bank holding company shall be subject to en9 hanced supervision and prudential standards by the 

10 Board of Governors, in accordance with section 165, 

11 if the Council determines that material financial dis12 tress at the bank holding company, or the nature, 

13 scope, size, scale, concentration, interconnectedness, 

14 or mix of the activities of the bank holding company, 

15 could pose a threat to the financial stability of the 

16 United States. 

17 ‘‘(2) CONSIDERATIONS.—In making a deter18 mination under paragraph (1), the Council shall use 

19 an indicator-based measurement approach, and con20 sider— 

21 ‘‘(A) the size of the bank holding company; 

22 ‘‘(B) the interconnectedness of the bank 

23 holding company; 


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1 ‘‘(C) the extent of readily available sub2 stitutes or financial institution infrastructure 

3 for the services of the bank holding company; 

4 ‘‘(D) the global cross-jurisdictional activity 

5 of the bank holding company; and 

6 ‘‘(E) the complexity of the bank holding 

7 company.’’; 

8 (4) in subsection (d), as so redesignated— 

9 (A) in paragraph (1)(A), by striking ‘‘sub10 section (a)(2) or (b)(2)’’ and inserting ‘‘sub11 section (a)(2), (b)(2), or (c)(2)’’; and 

12 (B) in paragraph (4), by striking ‘‘Sub13 sections (d) through (h)’’ and inserting ‘‘Sub14 sections (e) through (i)’’; 

15 (5) in subsections (e), (f), (g), (h), (i), and 

16 (j)— 

17 (A) by striking ‘‘subsections (a) and (b)’’ 

18 each place such term appears and inserting 

19 ‘‘subsections (a), (b), and (c)’’; and 

20 (B) by striking ‘‘nonbank financial com21 pany’’ each place such term appears and insert22 ing ‘‘bank holding company for which there has 

23 been a determination under subsection (c) or 

24 nonbank financial company’’; 


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1 (6) in subsection (g), as so redesignated, by 

2 striking ‘‘subsection (e)’’ and inserting ‘‘subsection 

3 (f)’’; 

4 (7) in subsection (h), as so redesignated, by 

5 striking ‘‘subsection (a), (b), or (c)’’ and inserting 

6 ‘‘subsection (a), (b), (c), or (d)’’; and 

7 (8) in subsection (i), as so redesignated, by 

8 striking ‘‘subsection (d)(2), (e)(3), or (f)(5)’’ and in9 serting ‘‘subsection (e)(2), (f)(3), or (g)(5)’’. 

10 (c) ENHANCED SUPERVISION.—Section 115 of the 

11 Dodd-Frank Wall Street Reform and Consumer Protec12 tion Act (12 U.S.C. 5325) is amended— 

13 (1) in subsection (a)(1), by striking ‘‘large, 

14 interconnected bank holding companies’’ and insert15 ing ‘‘bank holding companies which have been the 

16 subject of a final determination under section 113’’; 

17 (2) in subsection (a)(2)— 

18 (A) in subparagraph (A), by striking ‘‘or’’ 

19 at the end; 

20 (B) by striking ‘‘the Council may’’ and all 

21 that follows through ‘‘differentiate’’ and insert22 ing ‘‘the Council may differentiate’’; and 

23 (C) by striking subparagraph (B); and 

24 (3) in subsection (b)(3), by striking ‘‘sub25 sections (a) and (b) of section 113’’ each place such 


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1 term appears and inserting ‘‘subsections (a), (b), 

2 and (c) of section 113’’. 

3 (d) REPORTS.—Section 116(a) of the Dodd-Frank 

4 Wall Street Reform and Consumer Protection Act (12 

5 U.S.C. 5326(a)) is amended by striking ‘‘with total con6 solidated assets of $50,000,000,000 or greater’’ and in7 serting ‘‘which has been the subject of a final determina8 tion under section 113’’. 

9 (e) MITIGATION.—Section 121 of the Dodd-Frank 

10 Wall Street Reform and Consumer Protection Act (12 

11 U.S.C. 5331) is amended— 

12 (1) in subsection (a), by striking ‘‘with total 

13 consolidated assets of $50,000,000,000 or more’’ 

14 and inserting ‘‘which has been the subject of a final 

15 determination under section 113’’; and 

16 (2) in subsection (c), by striking ‘‘subsection 

17 (a) or (b) of section 113’’ and inserting ‘‘subsection 

18 (a), (b), or (c) of section 113’’. 

19 (f) OFFICE OF FINANCIAL RESEARCH.—Section 155 

20 of the Dodd-Frank Wall Street Reform and Consumer 

21 Protection Act (12 U.S.C. 5345) is amended in subsection 

22 (d) by striking ‘‘with total consolidated assets of 

23 50,000,000,000 or greater’’ and inserting ‘‘which have 

24 been the subject of a final determination under section 

25 113’’. 


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1 SEC. 4. REVISIONS TO BOARD AUTHORITY. 

2 (a) ACQUISITIONS.—Section 163 of the Dodd-Frank 

3 Wall Street Reform and Consumer Protection Act (12 

4 U.S.C. 5363) is amended by striking ‘‘with total consoli5 dated assets equal to or greater than $50,000,000,000’’ 

6 each place such term appears and inserting ‘‘which has 

7 been the subject of a final determination under section 

8 113’’. 

9 (b) MANAGEMENT INTERLOCKS.—Section 164 of the 

10 Dodd-Frank Wall Street Reform and Consumer Protec11 tion Act (12 U.S.C. 5364) is amended by striking ‘‘with 

12 total consolidated assets equal to or greater than 

13 $50,000,000,000’’ and inserting ‘‘which has been the sub14 ject of a final determination under section 113’’. 

15 (c) ENHANCED SUPERVISION AND PRUDENTIAL

16 STANDARDS.—Section 165 of the Dodd-Frank Wall Street 

17 Reform and Consumer Protection Act (12 U.S.C. 5365) 

18 is amended— 

19 (1) in subsection (a), by striking ‘‘with total 

20 consolidated assets equal to or greater than 

21 $50,000,000,000’’ and inserting ‘‘which have been 

22 the subject of a final determination under section 

23 113’’; 

24 (2) in subsection (a)(2)— 

25 (A) by striking ‘‘(A) IN GENERAL.—’’; and 

26 (B) by striking subparagraph (B); 


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1 (3) by striking ‘‘subsections (a) and (b) of sec2 tion 113’’ each place such term appears and insert3 ing ‘‘subsections (a), (b), and (c) of section 113’’; 

4 and 

5 (4) in subsection (j), by striking ‘‘with total 

6 consolidated assets equal to or greater than 

7 $50,000,000,000’’ and inserting ‘‘which has been 

8 the subject of a final determination under section 

9 113’’. 

Æ 


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