II 

115TH CONGRESS 

1ST SESSION S. 1893 

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 SENATE OF THE UNITED STATES 

SEPTEMBER 28, 2017 

Mrs. MCCASKILL (for herself and Mr. PERDUE) introduced the following bill; 

which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs 

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 2017’’. 

6 SEC. 2. REVISIONS TO COUNCIL AUTHORITY. 

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

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1 tion Act (12 U.S.C. 5322) is amended in subsection 

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

3 been identified as global systemically important bank hold4 ing companies pursuant to section 217.402 of title 12, 

5 Code of Federal Regulations, or subjected to a determina6 tion under subsection (l) of section 165’’. 

7 (b) ENHANCED SUPERVISION.—Section 115 of the 

8 Dodd-Frank Wall Street Reform and Consumer Protec9 tion Act (12 U.S.C. 5325) is amended— 

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

11 interconnected bank holding companies’’ and insert12 ing ‘‘bank holding companies which have been iden13 tified as global systemically important bank holding 

14 companies pursuant to section 217.402 of title 12, 

15 Code of Federal Regulations, or subjected to a de16 termination under subsection (l) of section 165’’; 

17 and 

18 (2) in subsection (a)(2)— 

19 (A) in subparagraph (A), by striking ‘‘; 

20 or’’ at the end and inserting a period; 

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

22 that follows through ‘‘differentiate’’ and insert23 ing ‘‘the Council may differentiate’’; and 

24 (C) by striking subparagraph (B). 


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1 (c) REPORTS.—Section 116(a) of the Dodd-Frank 

2 Wall Street Reform and Consumer Protection Act (12 

3 U.S.C. 5326(a)) is amended by striking ‘‘with total con4 solidated assets of $50,000,000,000 or greater’’ and in5 serting ‘‘which has been identified as a global systemically 

6 important bank holding company pursuant to section 

7 217.402 of title 12, Code of Federal Regulations, or sub8 jected to a determination under subsection (l) of section 

9 165’’. 

10 (d) MITIGATION.—Section 121(a) of the Dodd-Frank 

11 Wall Street Reform and Consumer Protection Act (12 

12 U.S.C. 5331) is amended by striking ‘‘with total consoli13 dated assets of $50,000,000,000 or more’’ and inserting 

14 ‘‘which has been identified as a global systemically impor15 tant bank holding company pursuant to section 217.402 

16 of title 12, Code of Federal Regulations, or subjected to 

17 a determination under subsection (l) of section 165’’. 

18 (e) OFFICE OF FINANCIAL RESEARCH.—Section 155 

19 of the Dodd-Frank Wall Street Reform and Consumer 

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

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

22 50,000,000,000 or greater’’ and inserting ‘‘which have 

23 been identified as global systemically important bank hold24 ing companies pursuant to section 217.402 of title 12, 


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1 Code of Federal Regulations, or subjected to a determina2 tion under subsection (l) of section 165’’. 

3 SEC. 3. REVISIONS TO BOARD AUTHORITY. 

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

5 Wall Street Reform and Consumer Protection Act (12 

6 U.S.C. 5363) is amended by striking ‘‘with total consoli7 dated assets equal to or greater than $50,000,000,000’’ 

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

9 been identified as a global systemically important bank 

10 holding company pursuant to section 217.402 of title 12, 

11 Code of Federal Regulations, or subjected to a determina12 tion under subsection (l) of section 165’’. 

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

14 Dodd-Frank Wall Street Reform and Consumer Protec15 tion Act (12 U.S.C. 5364) is amended by striking ‘‘with 

16 total consolidated assets equal to or greater than 

17 $50,000,000,000’’ and inserting ‘‘which has been identi18 fied as a global systemically important bank holding com19 pany pursuant to section 217.402 of title 12, Code of Fed20 eral Regulations, or subjected to a determination under 

21 subsection (l) of section 165’’. 

22 (c) ENHANCED SUPERVISION AND PRUDENTIAL

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

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

25 is amended— 


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

2 consolidated assets equal to or greater than 

3 $50,000,000,000’’ and inserting ‘‘which have been 

4 identified as global systemically important bank 

5 holding companies pursuant to section 217.402 of 

6 title 12, Code of Federal Regulations, or subjected 

7 to a determination under subsection (l)’’; 

8 (2) in subsection (a)(2)— 

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

10 (B) in subparagraph (A), by striking 

11 ‘‘may’’ and inserting ‘‘shall’’; and 

12 (C) by striking subparagraph (B); 

13 (3) in subsection (j), by striking ‘‘with total 

14 consolidated assets equal to or greater than 

15 $50,000,000,000’’ and inserting ‘‘which has been 

16 identified as a global systemically important bank 

17 holding company pursuant to section 217.402 of 

18 title 12, Code of Federal Regulations, or subjected 

19 to a determination under subsection (l)’’. 

20 (d) ADVANCED TAILORING.—Section 165 of the 

21 Dodd-Frank Wall Street Reform and Consumer Protec22 tion Act (12 U.S.C. 5365) is amended by adding at the 

23 end the following: 


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1 ‘‘(l) ADDITIONAL BANK HOLDING COMPANIES SUB2 JECT TO ENHANCED SUPERVISION AND PRUDENTIAL

3 STANDARDS BY TAILORED REGULATION.— 

4 ‘‘(1) DETERMINATION.—The Board of Gov5 ernors may, within the limits of its existing re6 sources— 

7 ‘‘(A) determine that a bank holding com8 pany that has not been identified as a global 

9 systemically important bank holding company 

10 pursuant to section 217.402 of title 12, Code of 

11 Federal Regulations, shall be subject to certain 

12 enhanced supervision or prudential standards 

13 under this section, tailored to the risks pre14 sented, based on the considerations in para15 graph (3), where material financial distress at 

16 the bank holding company, or the nature, scope, 

17 size, scale, concentration, interconnectedness, or 

18 mix of the activities of the individual bank hold19 ing company, could pose a threat to the finan20 cial stability of the United States; or 

21 ‘‘(B) by regulation determine that a cat22 egory of bank holding companies that have not 

23 been identified as global systemically important 

24 bank holding companies pursuant to section 

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1 tions, shall be subject to certain enhanced su2 pervision or prudential standards under this 

3 section, tailored to the risk presented by the 

4 category of bank holding companies, based on 

5 the considerations in paragraph (3), where ma6 terial financial distress at the category of bank 

7 holding companies, or the nature, scope, size, 

8 scale, concentration, interconnectedness, or mix 

9 of the activities of the category of bank holding 

10 companies, could pose a threat to the financial 

11 stability of the United States. 

12 ‘‘(2) COUNCIL APPROVAL OF REGULATIONS

13 WITH RESPECT TO CATEGORIES.—Notwithstanding 

14 paragraph (1)(B), a regulation issued by the Board 

15 of Governors to make a determination under such 

16 paragraph (1)(B) shall not take effect unless the 

Council, by a vote of not fewer than 2 17 ⁄3 of the voting 

18 members then serving, including an affirmative vote 

19 by the Chairperson, approves the metrics used by 

20 the Board of Governors in establishing such regula21 tion. 

22 ‘‘(3) CONSIDERATIONS.—In making any deter23 mination under paragraph (1), the Board of Gov24 ernors shall consider the following factors: 


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1 ‘‘(A) The size of the bank holding com2 pany. 

3 ‘‘(B) The interconnectedness of the bank 

4 holding company. 

5 ‘‘(C) The extent of readily available sub6 stitutes or financial institution infrastructure 

7 for the services of the bank holding company. 

8 ‘‘(D) The global cross-jurisdictional activ9 ity of the bank holding company. 

10 ‘‘(E) The complexity of the bank holding 

11 company. 

12 ‘‘(4) CONSISTENT APPLICATION OF CONSIDER13 ATIONS.—In making a determination under para14 graph (1), the Board of Governors shall ensure that 

15 bank holding companies that are similarly situated 

16 with respect to the factors described under para17 graph (3), are treated similarly for purposes of any 

18 enhanced supervision or prudential standards ap19 plied under this section. 

20 ‘‘(5) USE OF CURRENTLY REPORTED DATA TO

21 AVOID UNNECESSARY BURDEN.—For purposes of 

22 making a determination under paragraph (1), the 

23 Board of Governors shall make use of data already 

24 being reported to the Board of Governors, including 

25 from calculating a bank holding company’s systemic 


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1 indicator score, in order to avoid placing an unneces2 sary burden on bank holding companies.’’. 

3 (e) SYSTEMIC IDENTIFICATION.—Section 165 of the 

4 Dodd-Frank Wall Street Reform and Consumer Protec5 tion Act (12 U.S.C. 5365), as amended by subsection (d), 

6 is further amended by adding at the end the following: 

7 ‘‘(m) SYSTEMIC IDENTIFICATION.—With respect to 

8 the identification of bank holding companies as global sys9 temically important bank holding companies pursuant to 

10 section 217.402 of title 12, Code of Federal Regulations, 

11 or subjected to a determination under subsection (l), the 

12 Board of Governors shall— 

13 ‘‘(1) publish, including on the Board of 

14 Governors’s website, a list of all bank holding com15 panies that have been so identified, and keep such 

16 list current; and 

17 ‘‘(2) solicit feedback from the Council on the 

18 identification process and on the application of such 

19 process to specific bank holding companies.’’. 

20 (f) CONFORMING AMENDMENT.—The second sub21 section (s) (relating to ‘‘Assessments, Fees, and Other 

22 Charges for Certain Companies’’) of section 11 of the Fed23 eral Reserve Act (12 U.S.C. 248) is amended— 

24 (1) by redesignating such subsection as sub25 section (t); and 


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1 (2) in paragraph (2)(A), by striking ‘‘having 

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

3 more’’ and inserting ‘‘which have been identified as 

4 global systemically important bank holding compa5 nies pursuant to section 217.402 of title 12, Code of 

6 Federal Regulations, or subjected to a determination 

7 under subsection (l) of section 165 of the Dodd8 Frank Wall Street Reform and Consumer Protection 

9 Act’’. 

10 SEC. 4. RULE OF CONSTRUCTION. 

11 Nothing in this Act or the amendments made by this 

12 Act shall be construed to prohibit the Board of Governors 

13 of the Federal Reserve System from prescribing enhanced 

14 prudential standards for any bank holding company which 

15 the Board of Governors determines, based upon the bank 

16 holding company’s size, interconnectedness, substitut17 ability, global cross-jurisdictional activity, and complexity, 

18 could pose a safety and soundness risk to the stability of 

19 the United States banking or financial system but has not 

20 been designated as a global systemically important bank 

21 holding company. 


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1 SEC. 5. EFFECTIVE DATE. 

2 The amendments made by this Act shall take effect 

3 after the end of the 1-year period following the date of 

4 the enactment of this Act. 

Æ 


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