I 

111TH CONGRESS 

2D SESSION H. R. 4516 

To provide stability in the financial services industry by promoting transparency, simplicity, fairness, accountability, and equal access in the market for consumer financial products or services and ensuring that no 

financial company becomes too big to fail, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 26, 2010 

Mr. DINGELL introduced the following bill; which was referred to the 

Committee on Financial Services 

A BILL 

To provide stability in the financial services industry by 

promoting transparency, simplicity, fairness, accountability, and equal access in the market for consumer 

financial products or services and ensuring that no financial company becomes too big to fail, 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; DEFINITIONS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Financial Services Industry Stability Act of 2010’’. 


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1 (b) DEFINITIONS.—For purposes of this Act, the fol2 lowing definitions shall apply: 

3 (1) CHAIRPERSON.—The term ‘‘Chairperson’’ 

4 means the Chairman of the Board of Governors of 

5 the Federal Reserve System. 

6 (2) FINANCIAL COMPANY.—The term ‘‘financial 

7 company’’ means a company or other entity— 

8 (A) that is— 

9 (i) incorporated or organized under 

10 the laws of the United States or any State, 

11 territory, or possession of the United 

12 States, the District of Columbia, Common13 wealth of Puerto Rico, Commonwealth of 

14 Northern Mariana Islands, Guam, Amer15 ican Samoa, or the United States Virgin 

16 Islands; or 

17 (ii) a company incorporated in or or18 ganized in a country other than the United 

19 States that has significant operations in 

20 the United States through— 

21 (I) a Federal or State branch or 

22 agency of a foreign bank (as such 

23 terms are defined in the International 

24 Banking Act of 1978 (12 U.S.C. 3101 

25 et seq.)); or 


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1 (II) a United States affiliate or 

2 other United States operating entity 

3 of a company that is incorporated or 

4 organized in a country other than the 

5 United States; and 

6 (B) that is, in whole or in part, directly or 

7 indirectly, engaged in financial activities. 

8 SEC. 2. FEDERAL AGENCY ACTIONS AND CONSULTATIONS; 

9 REPORT. 

10 (a) REVIEW OF PROGRAMS TO PROMOTE THE PUB11 LIC INTEREST.— 

12 (1) FEDERAL RESERVE BOARD REVIEW.—The 

13 Chairperson shall— 

14 (A) review all programs administered by 

15 the Board of Governors of the Federal Reserve 

16 System; and 

17 (B) utilize such programs in furtherance of 

18 the purposes of this Act. 

19 (2) OTHER AGENCY ACTION.—Each Federal de20 partment, agency, and independent establishment in 

21 the Executive branch shall, in consultation with, and 

22 with the assistance of, the Chairperson, utilize any 

23 authority of such department, agency, or establish24 ment, under any provision of law, in furtherance of 

25 the purposes of this Act by carrying out programs 


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1 to promote transparency, simplicity, fairness, ac2 countability, and equal access in the market for con3 sumer financial products or services. 

4 (b) ENSURE NO FINANCIAL COMPANY BECOMES TOO

5 BIG TO FAIL.—The head of each Federal department, 

6 agency, and independent establishment in the Executive 

7 branch shall, in consultation with, and with the assistance 

8 of, the Chairperson, take such steps as may be necessary 

9 to ensure that no financial company is able to pose a sys10 temic risk to the health of the United States economy by 

11 becoming too large to fail. 

12 (c) DEFINITIONS AND RULEMAKING.— 

13 (1) IN GENERAL.—The Chairperson shall, in 

14 accordance with section 553 of title 5, United States 

15 Code, and in consultation with all departments, 

16 agencies, and independent establishments in the Ex17 ecutive branch, prescribe regulations which, at a 

18 minimum, shall— 

19 (A) define the terms ‘‘systemic risk’’ and 

20 ‘‘too large to fail’’, consistent with the best fi21 nancial and commercial data available; 

22 (B) enumerate procedures that specify 

23 when and how the Chairperson and the head of 

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1 pendent establishment in the Executive branch 

2 shall— 

3 (i) cause financial companies that, in 

4 accordance with such regulations, are de5 termined to be too large to fail to restruc6 ture themselves in size and scope of oper7 ations so as not to pose a systemic risk to 

8 the health of the United States economy; 

9 and 

10 (ii) impose increased capital reserve 

11 requirements upon any financial company 

12 which has been ordered to restructure 

13 under clause (i), the appropriate levels of 

14 which shall be determined by regulations 

15 prescribed under this section; 

16 (C) define the criteria to be used by the 

17 Chairperson and the head of any other Federal 

18 department, agency, or independent establish19 ment in the Executive branch in causing the re20 structuring of financial companies under sub21 paragraph (B)(i); and 

22 (D) establish a fund comprised of annual 

23 levies on financial companies at levels deemed 

24 appropriate by the Chairperson and the head of 

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1 pendent establishment in the Executive branch 

2 for the purpose of financing restructurings pur3 suant to subparagraph (B)(i). 

4 (2) REGULATIONS.—The Chairperson shall 

5 commence the process for prescribing the regulations 

6 required under this subsection before the end of the 

7 30-day period beginning on the date of the enact8 ment of this Act. 

9 (d) REPORT TO THE CONGRESS.—The Chairperson 

10 and the head of each Federal department, agency, and 

11 independent establishment in the Executive branch shall 

12 submit an annual report to the Congress not later than 

13 January 1st of each year detailing the activities of the 

14 Board of Governors of the Federal Reserve System or such 

15 department, agency, or establishment in carrying out the 

16 requirements of this section. 

Æ 


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