I 

113TH CONGRESS 

2D SESSION H. R. 4060 

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 

FEBRUARY 14, 2014 

Mr. LUETKEMEYER (for himself, Mr. BACHUS, Mr. STIVERS, Mr. DAVID

SCOTT of Georgia, Mr. MURPHY of Florida, and Ms. SEWELL of Alabama) 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 2014’’. 


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1 SEC. 2. TABLE OF CONTENTS. 

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

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

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

5 113 and inserting the following: 

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

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

6 SEC. 3. REVISIONS TO COUNCIL AUTHORITY. 

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

8 Dodd-Frank Wall Street Reform and Consumer Protec9 tion Act (12 U.S.C. 5322) is amended in subsection 

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

11 been the subject of a final determination under section 

12 113’’. 

13 (b) BANK HOLDING COMPANY DESIGNATION.—Sec14 tion 113 of the Dodd-Frank Wall Street Reform and Con15 sumer Protection Act (12 U.S.C. 5323) is amended— 

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

17 read as follows: ‘‘AUTHORITY TO REQUIRE EN18 HANCED SUPERVISION AND REGULATION OF

19 CERTAIN NONBANK FINANCIAL COMPANIES

20 AND CERTAIN BANK HOLDING COMPANIES’’; 

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

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

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


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1 (3) by inserting after subsection (b) the fol2 lowing: 

3 ‘‘(c) BANK HOLDING COMPANIES SUBJECT TO EN4 HANCED SUPERVISION AND PRUDENTIAL STANDARDS

5 UNDER SECTION 165.— 

6 ‘‘(1) DETERMINATION.—The Council, on a nondelegable basis and by a vote of not fewer than 2 7 ⁄3

8 of the voting members then serving, including an af9 firmative vote by the Chairperson, may determine 

10 that a bank holding company shall be subject to en11 hanced supervision and prudential standards by the 

12 Board of Governors, in accordance with section 165, 

13 if the Council determines, based on the consider14 ations in paragraph (2), that material financial dis15 tress at the bank holding company, or the nature, 

16 scope, size, scale, concentration, interconnectedness, 

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

18 could pose a threat to the financial stability of the 

19 United States. 

20 ‘‘(2) CONSIDERATIONS.—In making a deter21 mination under paragraph (1), the Council shall use 

22 the indicator-based measurement approach estab23 lished by the Basel Committee on Banking Super24 vision to determine systemic importance, which con25 siders— 


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

2 ‘‘(B) the interconnectedness of the bank 

3 holding company; 

4 ‘‘(C) the extent of readily available sub5 stitutes or financial institution infrastructure 

6 for the services of the bank holding company; 

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

8 of the bank holding company; and 

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

10 company. 

11 ‘‘(3) EXEMPTION FOR CERTAIN BANK HOLDING

12 COMPANIES.—This subsection shall not apply to a 

13 bank holding company with total consolidated assets 

14 of $50,000,000,000 or less.’’; 

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

16 (A) in paragraph (1)(A), by striking ‘‘sub17 section (a)(2) or (b)(2)’’ and inserting ‘‘sub18 section (a)(2), (b)(2), or (c)(2)’’; and 

19 (B) in paragraph (4), by striking ‘‘Sub20 sections (d) through (h)’’ and inserting ‘‘Sub21 sections (e) through (i)’’; 

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

23 (j)— 


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

2 each place such term appears and inserting 

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

4 (B) by striking ‘‘nonbank financial com5 pany’’ each place such term appears and insert6 ing ‘‘bank holding company for which there has 

7 been a determination under subsection (c) or 

8 nonbank financial company’’; 

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

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

11 (f)’’; 

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

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

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

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

16 striking ‘‘subsection (d)(2), (e)(3), or (f)(5)’’ and in17 serting ‘‘subsection (e)(2), (f)(3), or (g)(5)’’. 

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

19 Dodd-Frank Wall Street Reform and Consumer Protec20 tion Act (12 U.S.C. 5325) is amended— 

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

22 interconnected bank holding companies’’ and insert23 ing ‘‘bank holding companies which have been the 

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

25 (2) in subsection (a)(2)— 


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

2 at the end; 

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

4 that follows through ‘‘differentiate’’ and insert5 ing ‘‘the Council may differentiate’’; and 

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

7 (3) in subsection (b)(3), by striking ‘‘sub8 sections (a) and (b) of section 113’’ each place such 

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

10 and (c) of section 113’’. 

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

12 Wall Street Reform and Consumer Protection Act (12 

13 U.S.C. 5326(a)) is amended by striking ‘‘with total con14 solidated assets of $50,000,000,000 or greater’’ and in15 serting ‘‘which has been the subject of a final determina16 tion under section 113’’. 

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

18 Wall Street Reform and Consumer Protection Act (12 

19 U.S.C. 5331) is amended— 

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

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

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

23 determination under section 113’’; and 


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

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

3 (a), (b), or (c) of section 113’’. 

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

5 of the Dodd-Frank Wall Street Reform and Consumer 

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

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

8 50,000,000,000 or greater’’ and inserting ‘‘which have 

9 been the subject of a final determination under section 

10 113’’. 

11 SEC. 4. REVISIONS TO BOARD AUTHORITY. 

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

13 Wall Street Reform and Consumer Protection Act (12 

14 U.S.C. 5363) is amended by striking ‘‘with total consoli15 dated assets equal to or greater than $50,000,000,000’’ 

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

17 been the subject of a final determination under section 

18 113’’. 

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

20 Dodd-Frank Wall Street Reform and Consumer Protec21 tion Act (12 U.S.C. 5364) is amended by striking ‘‘with 

22 total consolidated assets equal to or greater than 

23 $50,000,000,000’’ and inserting ‘‘which has been the sub24 ject of a final determination under section 113’’. 


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1 (c) ENHANCED SUPERVISION AND PRUDENTIAL

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

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

4 is amended— 

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

6 consolidated assets equal to or greater than 

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

8 the subject of a final determination under section 

9 113’’; 

10 (2) in subsection (a)(2)— 

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

12 (B) by striking subparagraph (B); 

13 (3) by striking ‘‘subsections (a) and (b) of sec14 tion 113’’ each place such term appears and insert15 ing ‘‘subsections (a), (b), and (c) of section 113’’; 

16 and 

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

18 consolidated assets equal to or greater than 

19 $50,000,000,000’’ and inserting ‘‘which has been 

20 the subject of a final determination under section 

21 113’’. 

22 (d) CONFORMING AMENDMENT.—The second sub23 section (s) (relating to ‘‘Assessments, Fees, and Other 

24 Charges for Certain Companies’’) of section 11 of the Fed25 eral Reserve Act (12 U.S.C. 248) is amended— 


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1 (1) by redesignating such subsection as sub2 section (t); and 

3 (2) in paragraph (2)— 

4 (A) in subparagraph (A), by striking ‘‘hav5 ing total consolidated assets of 

6 $50,000,000,000 or more;’’ and inserting 

7 ‘‘which have been the subject of a final deter8 mination under section 113 of the Dodd-Frank 

9 Wall Street Reform and Consumer Protection 

10 Act; and’’; 

11 (B) by striking subparagraph (B); and 

12 (C) by redesignating subparagraph (C) as 

13 subparagraph (B). 

14 SEC. 5. EFFECTIVE DATE. 

15 (a) IN GENERAL.—Subject to subsection (b), the 

16 amendments made by this Act shall take effect one year 

17 after the date of enactment of this Act. 

18 (b) PRESUMPTION OF DETERMINATION.—Notwith19 standing subsection (a), with respect to a bank holding 

20 company that has been identified by the Financial Sta21 bility Board as a Global Systemically Important Financial 

22 Institution, the Financial Stability Oversight Council may, 

23 upon enactment of this Act, begin proceedings for a deter24 mination under section 113(c) of the Dodd-Frank Wall 

25 Street Reform and Consumer Protection Act, as added by 


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1 section 3(b)(3), but the Council may not make a final de2 termination under such section 113(c) with respect to a 

3 bank holding company before the effective date described 

4 under subsection (a). 

Æ 


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