I 
115TH CONGRESS 
1ST SESSION H. R. 3838 
To require the appropriate Federal banking agencies to treat certain non- 
significant investments in the capital of unconsolidated financial institu-
tions as qualifying capital instruments, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 26, 2017 
Mr. DUFFY (for himself, Mr. KELLY of Mississippi, Mr. THOMPSON of Mis-
sissippi, Mr. HARPER, and Mr. LUCAS) introduced the following bill; 
which was referred to the Committee on Financial Services 
A BILL 
To require the appropriate Federal banking agencies to treat 
certain non-significant investments in the capital of un-
consolidated financial institutions as qualifying capital 
instruments, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Trust Preferred Secu-
rities Act of 2017’’. 
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SEC. 2. TREATMENT OF CERTAIN NON-SIGNIFICANT IN-
VESTMENTS IN THE CAPITAL OF UNCONSOLI-
DATED FINANCIAL INSTITUTIONS. 
(a) IN GENERAL.—Section 18 of the Federal Deposit 
Insurance Act (12 U.S.C. 1828) is amended— 
(1) by moving subsection (z) so that it appears 
after subsection (y); and 
(2) by adding at the end the following: 
‘‘(aa) TREATMENT
OF NON-SIGNIFICANT INVEST-
MENTS IN THE CAPITAL OF UNCONSOLIDATED FINAN-
CIAL INSTITUTIONS.—For purposes of the final rules ti-
tled ‘Regulatory Capital Rules: Regulatory Capital, Imple-
mentation of Basel III, Capital Adequacy, Transition Pro-
visions, Prompt Corrective Action, Standardized Approach 
for Risk-weighted Assets, Market Discipline and Disclo-
sure Requirements, Advanced Approaches Risk-Based 
Capital Rule, and Market Risk Capital Rule’ (78 Fed. 
Reg. 62018; published Oct. 11, 2013, and 79 Fed. Reg. 
20754; published April 14, 2014) and any other regulation 
which incorporates a definition of the term ‘non-signifi-
cant investments in the capital of unconsolidated financial 
institutions’, the appropriate Federal banking agencies 
shall provide that investments in trust preferred securities 
(pooled and individual instruments) by a depository insti-
tution or a depository institution holding company shall 
not be subject to deduction from the regulatory capital of 
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such depository institution or depository institution hold-
ing company or any depository institution holding com-
pany of such an institution, provided such investments 
were held prior to July 21, 2010.’’. 
(b) AMENDMENT TO BASEL III CAPITAL REGULA-
TIONS.—Not later than the end of the 3-month period be-
ginning on the date of the enactment of this Act, the Fed-
eral Deposit Insurance Corporation, the Board of Gov-
ernors of the Federal Reserve System, and the Comp-
troller of the Currency shall amend the final rules titled 
‘‘Regulatory Capital Rules: Regulatory Capital, Implemen-
tation of Basel III, Capital Adequacy, Transition Provi-
sions, Prompt Corrective Action, Standardized Approach 
for Risk-weighted Assets, Market Discipline and Disclo-
sure Requirements, Advanced Approaches Risk-Based 
Capital Rule, and Market Risk Capital Rule’’ (78 Fed. 
Reg. 62018; published Oct. 11, 2013, and 79 Fed. Reg. 
20754; published April 14, 2014) to implement the 
amendments made by this Act. 
Æ 
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