Terminating the Expansion of Too-Big-To-Fail Act of 2013

To amend the Financial Stability Act of 2010 to repeal certain designation authority of the Financial Stability Oversight Council, to repeal the Payment, Clearing, and Settlement Supervision Act of 2010, and for other purposes. 1. Short title This Act may be cited as the Terminating the Expansion of Too-Big-To-Fail Act of 2013 2. Repeal of designation authority under the Financial Stability Act of 2010 (a) In general The Dodd Frank Wall Street Reform and Consumer Protection Act ( Public Law 111–203 (1) in section 102 (12 U.S.C. 5311)— (A) in subsection (a)— (i) by striking paragraph (4); and (ii) by amending paragraph (7) to read as follows: (7) Significant bank holding company The term significant bank holding company ; and (B) by striking subsection (c); (2) in section 112 (12 U.S.C. 5322)— (A) in subsection (a)— (i) in paragraph (1)(A), by striking or nonbank financial companies (ii) in paragraph (2)— (I) in subparagraph (A), by striking and nonbank financial companies (II) by striking subparagraphs (H) and (J); (III) by redesignating subparagraphs (I), (K), (L), (M), and (N) as subparagraphs (H), (I), (J), (K), and (L), respectively; (IV) in subparagraph (H), as so redesignated, by striking nonbank financial companies and (V) in subparagraph (I), as so redesignated, by striking , nonbank financial companies, (VI) in subparagraph (L), as so redesignated— (aa) by striking clause (iv); and (bb) by redesignating clauses (v) and (vi) as clauses (iv) and (v), respectively; and (B) in subsection (d)— (i) in paragraph (3)— (I) in subparagraph (A), by striking nonbank financial company or (II) in subparagraph (B), by striking nonbank financial company or (III) in subparagraph (C), by striking foreign nonbank financial company or (ii) by striking paragraph (4); (3) by striking sections 113 ( 12 U.S.C. 5323 12 U.S.C. 5324 12 U.S.C. 5361 12 U.S.C. 5362 12 U.S.C. 5364 12 U.S.C. 5367 (4) in section 115 (12 U.S.C. 5325)— (A) in the heading for such section, by striking nonbank financial companies supervised by the Board of Governors and (B) in subsection (a)(1)— (i) by striking nonbank financial companies supervised by the Board of Governors and (ii) in subparagraph (A), by striking nonbank financial companies and (C) in subsection (b)— (i) in paragraph (2)— (I) in the heading for such paragraph, by striking financial companies bank holding companies (II) by striking foreign nonbank financial companies supervised by the Board of Governors or (III) in subparagraph (B), by striking foreign nonbank financial company or (ii) in paragraph (3)— (I) in subparagraph (A)— (aa) by striking nonbank financial companies supervised by the Board of Governors and (bb) in clause (i), by inserting before the semicolon the following: (as in effect on the day before the date of the enactment of the Terminating the Expansion of Too-Big-To-Fail Act of 2013 (II) in subparagraph (B), by inserting after section 113 (as in effect on the day before the date of the enactment of the Terminating the Expansion of Too-Big-To-Fail Act of 2012) (D) in subsection (c)— (i) in paragraph (1), by striking nonbank financial companies supervised by the Board of Governors and (ii) in paragraph (3)— (I) in subparagraph (A), by striking any nonbank financial company supervised by the Board of Governors and (II) in subparagraph (B)(iii), by striking a nonbank financial company supervised by the Board of Governors or (E) in subsection (d)— (i) in paragraph (1), by striking each nonbank financial company supervised by the Board of Governors and (ii) in paragraph (2)— (I) by striking nonbank financial company supervised by the Board of Governors and (II) by striking significant nonbank financial companies and (F) in subsection (e), by striking nonbank financial companies supervised by the Board of Governors or (G) in subsection (f), by striking and by nonbank financial companies supervised by the Board of Governors (H) in subsection (g), by striking , nonbank financial companies supervised by the Board of Governors, (5) in section 116 (12 U.S.C. 5326)— (A) in subsection (a), by striking or a nonbank financial company supervised by the Board of Governors (B) in subsection (b)— (i) in paragraph (1)(A), by striking , nonbank financial company supervised by the Board of Governors, (ii) in paragraph (2), by striking and nonbank financial company supervised by the Board of Governors (6) in section 117 (12 U.S.C. 5327)— (A) in subsection (b), by striking such entity shall be treated as a nonbank financial company supervised by the Board of Governors, as if the Council had made a determination under section 113 with respect to that entity for purposes of this title, such entity shall be treated as a bank holding company with total consolidated assets of $50,000,000,000 (B) in subsection (c)— (i) in paragraph (1), by striking a nonbank financial company supervised by the Board of Governors a bank holding company with total consolidated assets of $50,000,000,000 (ii) in paragraph (2), by striking subparagraph (C); (7) in section 119(a) ( 12 U.S.C. 5329(a) , nonbank financial company, (8) in section 120 (12 U.S.C. 5330)— (A) in subsection (a)— (i) by striking or nonbank financial companies (ii) by striking and nonbank financial companies (B) in subsection (d)— (i) in paragraph (1), by adding and (ii) in paragraph (2), by striking ; and (iii) by striking paragraph (3); (9) in section 121 (12 U.S.C. 5331)— (A) in subsection (a), by striking , or a nonbank financial company supervised by the Board of Governors, (B) in subsection (c), by inserting after section 113 (as in effect on the day before the date of the enactment of the Terminating the Expansion of Too-Big-To-Fail Act of 2012) (C) in subsection (d)— (i) in the heading for such subsection, by striking Foreign financial companies Foreign-Based bank holding companies (ii) by striking foreign nonbank financial companies supervised by the Board of Governors and (iii) by amending paragraph (2) to read as follows: (2) taking into account the extent to which the foreign-based bank holding company is subject on a consolidated basis to home country standards that are comparable to those applied to bank holding companies in the United States. ; (10) in the heading for subtitle C, by striking Certain nonbank financial companies and (11) in section 155(d) ( 12 U.S.C. 5345(d) and nonbank financial companies supervised by the Board of Governors (12) in section 163 ( 12 U.S.C. 5363 (A) by striking subsection (a), (B) by redesignating subsection (b) as subsection (a); and (C) in subsection (a), as so redesignated, by striking or a nonbank financial company supervised by the Board of Governors (13) in section 165 ( 12 U.S.C. 5365 (A) in the heading for such section, by striking nonbank financial companies supervised by the Board of Governors and (B) in subsection (a)(1)— (i) by striking nonbank financial companies supervised by the Board of Governors and (ii) in subparagraph (A), by striking nonbank financial companies and (C) in subsection (b)— (i) in paragraph (1), by striking nonbank financial companies supervised by the Board of Governors and (ii) in paragraph (2)— (I) in the heading for such paragraph, by striking foreign financial companies foreign-based bank holding companies (II) by striking foreign nonbank financial company supervised by the Board of Governors or (III) in subparagraph (B)— (aa) by striking foreign financial company foreign-based bank holding company (bb) by striking financial companies bank holding companies (iii) in paragraph (3)— (I) by inserting after section 113 (as in effect on the day before the date of the enactment of the Terminating the Expansion of Too-Big-To-Fail Act of 2012) (II) in subparagraph (A), by striking nonbank financial companies supervised by the Board of Governors and (iv) in paragraph (4), by striking a nonbank financial company supervised by the Board of Governors or (D) in subsection (c)— (i) in paragraph (1)— (I) by striking nonbank financial company supervised by the Board of Governors and (II) by striking bank holding companies bank holding company (ii) in paragraph (2)(D), by striking nonbank financial company supervised by the Board of Governors or a (E) in subsection (d)— (i) by striking nonbank financial company supervised by the Board of Governors and (ii) in paragraph (1), by striking bank holding companies bank holding company (iii) in paragraph (2)— (I) by striking significant nonbank financial companies and (II) by striking bank holding companies bank holding company (iv) in paragraph (4), by striking a nonbank financial company supervised by the Board of Governors or (v) in paragraph (5), by striking a nonbank financial company supervised by the Board of Governors or (vi) in paragraph (6), by striking the nonbank financial company supervised by the Board, any bank holding company, or any subsidiary or affiliate of the foregoing any bank holding company or any subsidiary or affiliate of the bank holding company (F) in subsection (e)— (i) in paragraph (1), by striking a nonbank financial company supervised by the Board of Governors or (ii) in paragraph (2), by striking nonbank financial company supervised by the Board of Governors and (iii) in paragraph (3), by striking the nonbank financial company supervised by the Board of Governors or (iv) in paragraph (4), by striking a nonbank financial company supervised by the Board of Governors or (G) in subsection (f), by striking nonbank financial companies supervised by the Board of Governors and (H) in subsection (g)(1), by striking and any nonbank financial company supervised by the Board of Governors (I) in subsection (h)— (i) by striking paragraph (1); (ii) by redesignating paragraphs (2) and (3) as paragraphs (1) and (2), respectively; (iii) in paragraph (1), as so redesignated, by striking paragraph (3) paragraph (2) (iv) in paragraph (2), as so redesignated, by striking nonbank financial company supervised by the Board of Governors or (J) in subsection (i)— (i) in paragraph (1)— (I) in subparagraph (A), by striking nonbank financial companies supervised by the Board of Governors and (II) in subparagraph (B), by striking and nonbank financial companies (ii) in paragraph (2)(A), by striking nonbank financial company supervised by the Board of Governors and a (K) in subsection (j)— (i) in paragraph (1), by striking or a nonbank financial company supervised by the Board of Governors (ii) in paragraph (2), by inserting after section 113 (as in effect on the day before the date of the enactment of the Terminating the Expansion of Too-Big-To-Fail Act of 2012) (L) in subsection (k)(1), by striking or nonbank financial company supervised by the Board of Governors (14) in section 166 ( 12 U.S.C. 5366 a nonbank financial company supervised by the Board of Governors or (15) in section 169 ( 12 U.S.C. 5369 and nonbank financial companies (16) in section 171(b) ( 12 U.S.C. 5371(b) (A) by striking , depository institution holding companies, and nonbank financial companies supervised by the Board of Governors and depository institution holding companies (B) in paragraph (3)— (i) by striking or nonbank financial companies supervised by the Board of Governors (ii) by striking or the primary financial regulatory agency in the case of nonbank financial companies supervised by the Board of Governors (C) in paragraph (4)— (i) by striking or by nonbank financial companies supervised by the Board of Governors (ii) by adding a period at the end. (b) Conforming amendments (1) Bank Holding Company Act of 1956 The Bank Holding Company Act of 1956 ( 12 U.S.C. 1841 et seq. (A) in section 13 (12 U.S.C. 1851)— (i) in subsection (a), by striking paragraph (2); (ii) in subsection (b)(2)(B)— (I) in clause (i)(II), by striking , any nonbank financial company supervised by the Board (II) in clause (ii), by striking and nonbank financial companies supervised by the Board (iii) in subsection (c)(2)— (I) by striking or nonbank financial company supervised by the Board (II) by striking or 2 years after the date on which the entity or company becomes a nonbank financial company supervised by the Board (iv) in subsection (e)(2), by striking or nonbank financial company supervised by the Board (v) in subsection (g), by striking or nonbank financial company supervised by the Board (vi) in subsection (h)— (I) by striking paragraph (3); (II) by redesignating paragraphs (4), (5), (6), and (7) as paragraphs (3), (4), (5), and (6), respectively; and (III) in paragraph (3), as so redesignated, by striking or nonbank financial company supervised by the Board (B) in section 14(a) ( 12 U.S.C. 1852(a) (i) in paragraph (2)— (I) by striking subparagraph (E); and (II) by redesignating subparagraph (F) as subparagraph (E); and (ii) in paragraph (3)(C), by striking or other nonbank financial company supervised by the Board (2) Dodd- F The Dodd-Frank Wall Street Reform and Consumer Protection Act ( Public Law 111–203 (A) in the table of contents for such Act under section 1(b)— (i) by striking the items relating to sections 113, 114, 161, 162, 164, 167, 170, 216, and 217; (ii) in the item relating to section 115, by striking nonbank financial companies supervised by the Board of Governors and (iii) in the item relating to subtitle C of title II, by striking certain nonbank financial companies and (iv) in the item relating to section 165, by striking nonbank financial companies supervised by the Board of Governors and (B) in section 201(a) ( 12 U.S.C. 5381(a) (i) in paragraph (11)(B)— (I) by striking clause (ii); and (II) by redesignating clauses (iii) and (iv) as clauses (ii) and (iii), respectively; (ii) by striking paragraphs (14) and (15); and (iii) by redesignating paragraph (16) as paragraph (14); (C) in section 210(o)(1)(A) ( 12 U.S.C. 5390(o)(1)(A) and any nonbank financial company supervised by the Board of Governors (D) in section 618(a)(4)(B) ( 12 U.S.C. 1850a(a)(4)(B) (i) by striking clause (i); and (ii) by redesignating clauses (ii), (iii), (iv), (v), and (vi) as clauses (i), (ii), (iii), (iv), and (v), respectively; (E) in section 716(i)(1) ( 15 U.S.C. 8305(i)(1) (i) by striking subparagraph (B); (ii) by redesignating subparagraph (C) as subparagraph (B); and (iii) in subparagraph (B), as so redesignated— (I) in the heading for such subparagraph, by striking , non-systemically significant institutions not subject to heightened prudential supervision as regulated under section 113 swaps entities (II) by striking , non-systemically significant institutions not subject to heightened prudential supervision as regulated under section 113 (F) in section 726(a) ( 15 U.S.C. 8323(i) a nonbank financial company (as defined in section 102) supervised by the Board, an affiliate of such a bank holding company or nonbank financial company, an affiliate of such a bank holding company, (G) in section 765(a) ( 15 U.S.C. 8343(a) a nonbank financial company (as defined in section 102) supervised by the Board of Governors of the Federal Reserve System, affiliate of such a bank holding company or nonbank financial company, affiliate of such a bank holding company, (3) Federal Deposit Insurance Act Section 10(b)(3) of the Federal Deposit Insurance Act ( 12 U.S.C. 1820(b)(3) (A) in subparagraph (A)— (i) by striking or nonbank financial company supervised by the Board of Governors (ii) by striking or of such nonbank financial company supervised by the Board of Governors (B) in subparagraph (B), by striking a nonbank financial company supervised by the Board of Governors or (4) Federal Reserve Act Section 11 of the Federal Reserve Act ( 12 U.S.C. 248 (A) by redesignating the second subsection (s), as added by section 318(c) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, as subsection (t); and (B) in paragraph (2) of subsection (t), as so redesignated— (i) in subparagraph (A), by adding and (ii) in subparagraph (B), by striking ; and (iii) by striking subparagraph (C); (5) Title 31 Section 313(c)(1) (A) by striking subparagraph (C); and (B) by redesignating subparagraphs (D), (E), (F), (G), and (H) as subparagraphs (C), (D), (E), (F), and (G), respectively. 3. Repeal of the Payment, Clearing, and Settlement Supervision Act of 2010 Title VIII of the Dodd-Frank Wall Street Reform and Consumer Protection Act ( 12 U.S.C. 5461 et seq.

Summary: Terminating the Expansion of Too-Big-To-Fail Act of 2013 - Amends the Financial Stability Act of 2010, title I of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank), the Federal Deposit Insurance Act, and the Federal Reserve Act to eliminate all supervision by the Board of Governors of the Federal Reserve System (Board) of domestic and foreign nonbank financial companies, including new or heightened standards and safeguards and minimum leverage capital requirements. Eliminates the duty of the Financial Stability Oversight Council to identify systemically important financial market utilities and payment, clearing, and settlement activities. Repeals the authority of the Council, acting through the Office of Financial Research, to: (1) require the submission of periodic and other reports from any domestic or foreign nonbank financial company, or (2) request the Board to examine a U.S. nonbank financial company for the sole purpose of determining whether it should be Board-supervised. Repeals specified additional Board authority to supervise certain nonbank financial companies, including the prohibition against management interlocks between such companies and certain other financial companies. Repeals the requirement that the Board study and report to Congress on: (1) specified issues with respect to the resolution of financial companies under chapter 7 (Liquidation) or 11 (Reorganization) of the Bankruptcy Code, and (2) international coordination relating to the resolution of systemic financial companies under the U.S. Bankruptcy Code and applicable foreign law. Repeals the authority of the Council to recommend to the Board: (1) prudential standards and reporting and disclosure requirements for Board-supervised nonbank financial companies, and (2) any requirement that each nonbank financial company report periodically the company's credit exposure as well as its plan for rapid and orderly resolution in the event of material financial distress or failure. Repeals the requirement that the Council study the feasibility, benefits, costs, and structure of a contingent capital requirement for Board-supervised nonbank financial companies. Eliminates reporting requirements for such companies. Repeals the Payment, Clearing, and Settlement Supervision Act of 2010 (title VIII of Dodd-Frank).