II 

114TH CONGRESS 

2D SESSION S. 3500 

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 

DECEMBER 5, 2016 

Mr. WICKER (for himself and Mr. COCHRAN) 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 NON-SIGNIFICANT 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— 


lotter on DSK5VPTVN1PROD with BILLS
2 

•S 3500 IS

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 NON-SIGNIFICANT 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) (the ‘Final Rules’) and 

15 any other regulation which incorporates a definition of the 

16 term ‘non-significant investments in the capital of uncon17 solidated financial institutions’, the appropriate Federal 

18 banking agencies shall provide that a bank’s or a savings 

19 association’s investments in Trust Preferred Securities 

20 (pooled and individual instruments) shall not be subject 

21 to deduction from such institution’s regulatory capital, 

22 provided such instruments were held as investments prior 

23 to July 21, 2010.’’. 

24 (b) AMENDMENT TO BASEL III CAPITAL REGULA25 TIONS.—Not later than the end of the 3-month period beVerDate Sep 11 2014 23:32 Dec 05, 2016 Jkt 069200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S3500.IS S3500

lotter on DSK5VPTVN1PROD with BILLS
3 

•S 3500 IS

1 ginning on the date of the enactment of this Act, the Fed2 eral Deposit Insurance Corporation, the Board of Gov3 ernors of the Federal Reserve System, and the Comp4 troller of the Currency shall amend the final rules titled 

5 ‘‘Regulatory Capital Rules: Regulatory Capital, Implemen6 tation of Basel III, Capital Adequacy, Transition Provi7 sions, Prompt Corrective Action, Standardized Approach 

8 for Risk-Weighted Assets, Market Discipline and Disclo9 sure Requirements, Advanced Approaches Risk-Based 

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

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

12 20754; published April 14, 2014) to implement the 

13 amendments made by this Act. 

Æ 


lotter on DSK5VPTVN1PROD with BILLS