II 

115TH CONGRESS 

1ST SESSION S. 1647 

To require the appropriate Federal banking agencies to treat certain nonsignificant investments in the capital of unconsolidated financial institutions as qualifying capital instruments, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 27, 2017 

Mr. WICKER (for himself, Ms. DUCKWORTH, Mr. COCHRAN, and Ms. BALDWIN) introduced the following bill; which was read twice and referred to 

the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To require the appropriate Federal banking agencies to treat 

certain non-significant investments in the capital of unconsolidated financial institutions as qualifying capital 

instruments, 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. TREATMENT OF CERTAIN NONSIGNIFICANT IN4 VESTMENTS IN THE CAPITAL OF UNCONSOLI5 DATED FINANCIAL INSTITUTIONS. 

6 (a) IN GENERAL.—Section 18 of the Federal Deposit 

7 Insurance Act (12 U.S.C. 1828) is amended— 

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1 (1) by moving subsection (z) so that it appears 

2 after subsection (y); and 

3 (2) by adding at the end the following: 

4 ‘‘(aa) TREATMENT OF NONSIGNIFICANT INVEST5 MENTS IN THE CAPITAL OF UNCONSOLIDATED FINAN6 CIAL INSTITUTIONS.—For purposes of the final rules ti7 tled ‘Regulatory Capital Rules: Regulatory Capital, Imple8 mentation of Basel III, Capital Adequacy, Transition Pro9 visions, Prompt Corrective Action, Standardized Approach 

10 for Risk-weighted Assets, Market Discipline and Disclo11 sure Requirements, Advanced Approaches Risk-Based 

12 Capital Rule, and Market Risk Capital Rule’ (78 Fed. 

13 Reg. 62018; published Oct. 11, 2013, and 79 Fed. Reg. 

14 20754; published April 14, 2014) and any other regulation 

15 which incorporates a definition of the term ‘nonsignificant 

16 investments in the capital of unconsolidated financial in17 stitutions’, the appropriate Federal banking agencies shall 

18 provide that investments in trust preferred securities 

19 (pooled and individual instruments) by a depository insti20 tution with assets of less than $15,000,000,000 as of July 

21 21, 2010, or a depository institution holding company with 

22 assets of less than $15,000,000,000 as of July 21, 2010, 

23 shall not be subject to deduction from the regulatory cap24 ital of such depository institution or depository institution 

25 holding company or any depository institution holding 

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1 company of such an institution, provided such investments 

2 were held prior to July 21, 2010.’’. 

3 (b) AMENDMENT TO BASEL III CAPITAL REGULA4 TIONS.—Not later than the end of the 3-month period be5 ginning on the date of the enactment of this Act, the Fed6 eral Deposit Insurance Corporation, the Board of Gov7 ernors of the Federal Reserve System, and the Comp8 troller of the Currency shall amend the final rules titled 

9 ‘‘Regulatory Capital Rules: Regulatory Capital, Implemen10 tation of Basel III, Capital Adequacy, Transition Provi11 sions, Prompt Corrective Action, Standardized Approach 

12 for Risk-weighted Assets, Market Discipline and Disclo13 sure Requirements, Advanced Approaches Risk-Based 

14 Capital Rule, and Market Risk Capital Rule’’ (78 Fed. 

15 Reg. 62018; published Oct. 11, 2013, and 79 Fed. Reg. 

16 20754; published April 14, 2014) to implement the 

17 amendments made by this Act. 

Æ 

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