Systemic Risk Designation Improvement Act of 2014

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. Short title This Act may be cited as the Systemic Risk Designation Improvement Act of 2014 2. Table of contents The table of contents for the Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 5301 et seq.) is amended by striking the item relating to section 113 and inserting the following: Sec. 113. Authority to require enhanced supervision and regulation of certain nonbank financial companies and certain bank holding companies. . 3. Revisions to council authority (a) Purposes and duties Section 112 of the Dodd-Frank Wall Street Reform and Consumer Protection Act ( 12 U.S.C. 5322 , which have been the subject of a final determination under section 113 (b) Bank holding company designation Section 113 of the Dodd-Frank Wall Street Reform and Consumer Protection Act ( 12 U.S.C. 5323 (1) by amending the heading for such section to read as follows: Authority to require enhanced supervision and regulation of certain nonbank financial companies and certain bank holding companies (2) by redesignating subsections (c), (d), (e), (f), (g), (h), and (i) as subsections (d), (e), (f), (g), (h), (i), and (j), respectively; (3) by inserting after subsection (b) the following: (c) Bank holding companies subject to enhanced supervision and prudential standards under section 165 (1) Determination The Council, on a nondelegable basis and by a vote of not fewer than 2⁄3 (2) Considerations In making a determination under paragraph (1), the Council shall use the indicator-based measurement approach established by the Basel Committee on Banking Supervision to determine systemic importance, which considers— (A) the size of the bank holding company; (B) the interconnectedness of the bank holding company; (C) the extent of readily available substitutes or financial institution infrastructure for the services of the bank holding company; (D) the global cross-jurisdictional activity of the bank holding company; and (E) the complexity of the bank holding company. (3) Exemption for certain bank holding companies This subsection shall not apply to a bank holding company with total consolidated assets of $50,000,000,000 or less. ; (4) in subsection (d), as so redesignated— (A) in paragraph (1)(A), by striking subsection (a)(2) or (b)(2) subsection (a)(2), (b)(2), or (c)(2) (B) in paragraph (4), by striking Subsections (d) through (h) Subsections (e) through (i) (5) in subsections (e), (f), (g), (h), (i), and (j)— (A) by striking subsections (a) and (b) subsections (a), (b), and (c) (B) by striking nonbank financial company bank holding company for which there has been a determination under subsection (c) or nonbank financial company (6) in subsection (g), as so redesignated, by striking subsection (e) subsection (f) (7) in subsection (h), as so redesignated, by striking subsection (a), (b), or (c) subsection (a), (b), (c), or (d) (8) in subsection (i), as so redesignated, by striking subsection (d)(2), (e)(3), or (f)(5) subsection (e)(2), (f)(3), or (g)(5) (c) Enhanced supervision Section 115 of the Dodd-Frank Wall Street Reform and Consumer Protection Act ( 12 U.S.C. 5325 (1) in subsection (a)(1), by striking large, interconnected bank holding companies bank holding companies which have been the subject of a final determination under section 113 (2) in subsection (a)(2)— (A) in subparagraph (A), by striking or (B) by striking the Council may differentiate the Council may differentiate (C) by striking subparagraph (B); and (3) in subsection (b)(3), by striking subsections (a) and (b) of section 113 subsections (a), (b), and (c) of section 113 (d) Reports Section 116(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act ( 12 U.S.C. 5326(a) with total consolidated assets of $50,000,000,000 or greater which has been the subject of a final determination under section 113 (e) Mitigation Section 121 of the Dodd-Frank Wall Street Reform and Consumer Protection Act ( 12 U.S.C. 5331 (1) in subsection (a), by striking with total consolidated assets of $50,000,000,000 or more which has been the subject of a final determination under section 113 (2) in subsection (c), by striking subsection (a) or (b) of section 113 subsection (a), (b), or (c) of section 113 (f) Office of financial research Section 155 of the Dodd-Frank Wall Street Reform and Consumer Protection Act ( 12 U.S.C. 5345 with total consolidated assets of 50,000,000,000 or greater which have been the subject of a final determination under section 113 4. Revisions to Board authority (a) Acquisitions Section 163 of the Dodd-Frank Wall Street Reform and Consumer Protection Act ( 12 U.S.C. 5363 with total consolidated assets equal to or greater than $50,000,000,000 which has been the subject of a final determination under section 113 (b) Management interlocks Section 164 of the Dodd-Frank Wall Street Reform and Consumer Protection Act ( 12 U.S.C. 5364 with total consolidated assets equal to or greater than $50,000,000,000 which has been the subject of a final determination under section 113 (c) Enhanced supervision and prudential standards Section 165 of the Dodd-Frank Wall Street Reform and Consumer Protection Act ( 12 U.S.C. 5365 (1) in subsection (a), by striking with total consolidated assets equal to or greater than $50,000,000,000 which have been the subject of a final determination under section 113 (2) in subsection (a)(2)— (A) by striking (A) In general.— (B) by striking subparagraph (B); (3) by striking subsections (a) and (b) of section 113 subsections (a), (b), and (c) of section 113 (4) in subsection (j), by striking with total consolidated assets equal to or greater than $50,000,000,000 which has been the subject of a final determination under section 113 (d) Conforming Amendment The second subsection (s) (relating to Assessments, Fees, and Other Charges for Certain Companies 12 U.S.C. 248 (1) by redesignating such subsection as subsection (t); and (2) in paragraph (2)— (A) in subparagraph (A), by striking having total consolidated assets of $50,000,000,000 or more; which have been the subject of a final determination under section 113 of the Dodd-Frank Wall Street Reform and Consumer Protection Act; and (B) by striking subparagraph (B); and (C) by redesignating subparagraph (C) as subparagraph (B). 5. Effective date (a) In general Subject to subsection (b), the amendments made by this Act shall take effect one year after the date of enactment of this Act. (b) Presumption of Determination Notwithstanding subsection (a), with respect to a bank holding company that has been identified by the Financial Stability Board as a Global Systemically Important Financial Institution, the Financial Stability Oversight Council may, upon enactment of this Act, begin proceedings for a determination under section 113(c) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, as added by section 3(b)(3), but the Council may not make a final determination under such section 113(c) with respect to a bank holding company before the effective date described under subsection (a).

Summary: Systemic Risk Designation Improvement Act of 2014 - Amends the Dodd-Frank Wall Street Reform and Consumer Protection Act to authorize the Financial Stability Oversight Council to determine that a bank holding company shall be subject to enhanced supervision and prudential standards by the Board of Governors of the Federal Reserve System, if the Council makes a final determination that material financial distress at the bank holding company, or the nature, scope, size, scale, concentration, interconnectedness, or mix of its activities, could threaten the financial stability of the United States. Requires that final determination to be based upon specified factors using an indicator-based measurement approach established by the Basel Committee on Banking Supervision to determine systemic importance. Exempts from any Council determination to subject a bank holding company to enhanced supervision and prudential standards a bank holding company with total consolidated assets of $50 billion or less. Prohibits the Council, before the effective date of this Act, from making a final determination concerning any material financial distress of a bank holding company identified by the Financial Stability Board as a Global Systemically Important Financial Institution.