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.

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. 1. Enhanced supervision of certain bank holding companies (a) Table of contents The table of contents for the Dodd-Frank Wall Street Reform and Consumer Protection Act ( 12 U.S.C. 5301 Sec. 113. Authority to require enhanced supervision and regulation of certain nonbank financial companies and certain bank holding companies. . (b) Revisions to Council authority (1) 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 (2) Bank holding company designation Section 113 of the Dodd-Frank Wall Street Reform and Consumer Protection Act ( 12 U.S.C. 5323 (A) 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 (B) by redesignating subsections (c), (d), (e), (f), (g), (h), and (i) as subsections (d), (e), (f), (g), (h), (i), and (j), respectively; (C) by inserting after subsection (b) the following: (c) Bank holding companies subject to enhanced supervision and prudential standards under section 165 (1) In general There is a determination that bank holding companies with total consolidated assets equal to or greater than $250,000,000,000 shall be subject to enhanced supervision and prudential standards by the Board of Governors, in accordance with section 165. (2) Enhanced supervision for certain bank holding companies (A) Determination The Council shall review each bank holding company with total consolidated assets equal to or greater than $50,000,000,000 but less than $250,000,000,000 to determine whether such company shall be subject to enhanced supervision and prudential standards by the Board of Governors, in accordance with section 165. Such determination shall be made if the Council, on a non-delegable basis and by a vote of not fewer than 2/3 (B) Considerations In making a determination under subparagraph (A), the Council shall consider the following: (i) The size of the bank holding company. (ii) The interconnectedness of the bank holding company. (iii) The extent of readily available substitutes or financial institution infrastructure for the services of the bank holding company. (iv) The global cross-jurisdictional activity of the bank holding company. (v) The complexity of the bank holding company. (C) Review of determination With respect to a bank holding company described under subparagraph (A) that is not subject to enhanced supervision and prudential standards, the Council shall perform an additional review under subparagraph (A) of such company if— (i) the Council finds that the nature, scope, size, scale, concentration, interconnectedness, or mix of the activities of the bank holding company have significantly changed and the company should be reviewed again to determine if it may pose a threat to the financial stability of the United States; or (ii) a period of 36 months has passed since the bank holding company was last reviewed under subparagraph (A). (D) Notification of review If, after a review under this paragraph, the Council determines that a bank holding company described under subparagraph (A) shall be subject to enhanced supervision and prudential standards, the Council shall provide the bank holding company with written notice of such determination and an explanation of the Council’s reasoning for such determination. (E) Termination of enhanced supervision and prudential standards If, with respect to a bank holding company described under subparagraph (A) that is subject to enhanced supervision and prudential standards, the Council finds, on a non-delegable basis and by a vote of not fewer than 2/3 ; (D) in subsection (d), as so redesignated— (i) in paragraph (1)(A), by striking subsection (a)(2) or (b)(2) subsection (a)(2), (b)(2), or (c)(2) (ii) in paragraph (4), by striking Subsections (d) through (h) Subsections (e) through (i) (E) in subsections (f), (g), (h), (i), and (j), as so redesignated— (i) by striking subsections (a) and (b) subsections (a), (b), and (c) (ii) by striking nonbank financial company bank holding company for which there has been a determination under subsection (c) or nonbank financial company (F) in subsection (g), as so redesignated, by striking subsection (e) subsection (f) (G) in subsection (h), as so redesignated, by striking subsection (a), (b), or (c) subsection (a), (b), (c), or (d) (H) in subsection (i), as so redesignated, by striking subsection (d)(2), (e)(3), or (f)(5) subsection (e)(2), (f)(3), or (g)(5) (3) Enhanced supervision Section 115 of the Dodd-Frank Wall Street Reform and Consumer Protection Act ( 12 U.S.C. 5325 (A) 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 (B) in subsection (a)(2)— (i) in subparagraph (A), by striking or (ii) by striking the Council may differentiate the Council may differentiate (iii) by striking subparagraph (B); and (C) in subsection (b)(3), by striking subsections (a) and (b) of section 113 subsections (a), (b), and (c) of section 113 (4) 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 (5) Mitigation Section 121 of the Dodd-Frank Wall Street Reform and Consumer Protection Act ( 12 U.S.C. 5331 (A) 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 (B) in subsection (c), by striking subsection (a) or (b) of section 113 subsection (a), (b), or (c) of section 113 (6) 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 (c) Revisions to Board authority (1) 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 (2) 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 (3) Enhanced supervision and prudential standards Section 165 of the Dodd-Frank Wall Street Reform and Consumer Protection Act ( 12 U.S.C. 5365 (A) 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 (B) in subsection (a)(2)— (i) by striking (A) In general.— (ii) by striking subparagraph (B); (C) by striking subsections (a) and (b) of section 113 subsections (a), (b), and (c) of section 113 (D) 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) Effective date; expedited rulemaking authority (1) Effective date The amendments made by this section shall take effect on the earlier of— (A) the date on which the Financial Stability Oversight Council issues final regulations to carry out the amendment made by this section; or (B) the end of the 18-month period beginning on the date of the enactment of this Act. (2) Expedited Rulemaking Authority The Financial Stability Oversight Counsel and the Board of Governors of the Federal Reserve System shall— (A) issue regulations to carry out the amendments made by this section— (i) in proposed form, not later than the end of the 90-day period beginning on the date of the enactment of this Act; and (ii) in final form, not later than the end of the 180-day period beginning on the date of the enactment of this Act; and (B) such final regulations shall take effect not later than the end of the 1-year period beginning on the date of the enactment of this Act. 2. Sense of Congress It is the sense of Congress that— (1) consolidated asset size remains a factor, but only one of many factors, that should be considered in determining systemic risk; and (2) the more objective and complete processes identified in section 112 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, as modified by this Act, represent a more accurate indicator of systemic risk.

Summary: This bill revises the threshold for subjecting a bank holding company to enhanced supervision and prudential standards. Under current law, a bank holding company is subject to such standards and supervision if it has at least $50 billion in assets. Under the bill, a bank holding company shall be subject to such standards and supervision if (1) the company has at least $250 billion in assets; or (2) the company has between $50 billion and $250 billion in assets, and the Financial Stability Oversight Council determines that material financial distress at the company could threaten the financial stability of the United States.