112 
sidering whether to subject or cease to subject an 
activity to stricter prudential standards in accord-
ance with this section. 
(2) NOTICE AND OPPORTUNITY FOR CONSIDER-
ATION OF WRITTEN MATERIALS.— 
(A) IN GENERAL.—The Board shall, in an 
executive capacity on behalf of the Council, pro-
vide notice to financial companies that the 
Council is considering whether to subject an ac-
tivity or practice to heightened prudential regu-
lation, and shall provide a financial company 
engaged in such activity or practice 30 days to 
submit written materials to inform the Coun-
cil’s decision. The Council shall decide, and the 
Board shall provide notice of the Council’s deci-
sion, within 60 days of the due date for such 
written materials. 
(B) EMERGENCY EXCEPTION.—The Coun-
cil may waive or modify the requirements of 
subparagraph (A) if the Council determines 
that such waiver or modification is necessary or 
appropriate to prevent or mitigate threats posed 
by an activity to financial stability. The Board 
shall, in an executive capacity on behalf of the 
Council, provide notice of such waiver or modi-
113 
fication to financial companies as soon as prac-
ticable, which shall be no later than 24 hours 
after the waiver or modification. 
(3) FORM OF DECISION.—The Board shall pro-
vide all notices required under this subsection by 
posting a notice on the Board’s web site and pub-
lishing a notice in the Federal Register. 
SEC. 1107. STRICTER REGULATION OF ACTIVITIES AND 
PRACTICES FOR FINANCIAL STABILITY PUR-
POSES. 
(a) PRUDENTIAL STANDARDS.— 
(1) BOARD AUTHORITY TO RECOMMEND.— 
(A) IN GENERAL.—To mitigate the risks to 
United States financial stability and the United 
States economy posed by financial activities and 
practices that the Council identifies for stricter 
prudential standards under section 1106 the 
Board, as agent of the Council, shall rec-
ommend prudential standards to the appro-
priate primary financial regulatory agencies to 
apply to such identified activities and practices. 
(B) CONSULTATION WITH PRIMARY FINAN-
CIAL REGULATORY AGENCIES.—The Board, in 
developing recommendations under this sub-
section, shall consult with the relevant primary
114 
financial regulatory agencies with respect to 
any standard that is likely to have a significant 
effect 
on 
entities 
described 
in 
section 
1000(b)(6). With respect to any standard that 
is likely to have a significant effect on insur-
ance companies, the Board also shall consult 
with the Federal Insurance Office. 
(2) 
CRITERIA.—The 
actions 
recommended 
under paragraph (1)— 
(A) shall be designed to maximize financial 
stability, taking costs to long-term financial and 
economic growth into account; and 
(B) may include prescribing the conduct of 
the activity or practice in specific ways (such as 
by limiting its scope, nature, size, scale, con-
centration, or interconnectedness, or applying 
particular capital or risk-management require-
ments to the conduct of the activity) or prohib-
iting the activity or practice altogether. 
(3) EXCEPTION.—The standards recommended 
by the Board and adopted by a primary financial 
regulatory agency pursuant to this section shall not 
apply to activities that a foreign financial parent 
conducts solely outside the United States if such ac-
tivities are conducted solely by a company or other
115 
operating entity that is located outside the United 
States. 
(b) IMPLEMENTATION OF RECOMMENDED STAND-
ARDS.— 
(1) ROLE OF PRIMARY FINANCIAL REGULATORY 
AGENCY.—Each primary financial regulatory agency 
is authorized to impose, require reports regarding, 
examine for compliance with, and enforce standards 
in accordance with this section with respect to those 
entities described in section 1000(b)(6) for which it 
is the primary financial regulatory agency. This au-
thority is in addition to and does not limit any other 
authority of the primary financial regulatory agen-
cies. Compliance by an entity with actions taken by 
a primary financial regulatory agency under this sec-
tion shall be enforceable in accordance with the stat-
utes governing the respective primary financial regu-
latory agency’s jurisdiction over the entity as if the 
agency action were taken under those statutes. 
(2) IMPOSITION
OF
STANDARDS.—Standards 
imposed under this subsection shall be the standards 
recommended by the Board in accordance with sub-
section (a) or any other similar standards that the 
Board deems acceptable after consultation between
116 
the Board and the primary financial regulatory 
agency. 
(3) PRIMARY FINANCIAL REGULATORY AGENCY 
RESPONSE.—A primary financial regulatory agency 
shall notify the Council and the Board in writing on 
whether and to what extent the agency has imposed 
the stricter prudential standards described in para-
graph (2) within 60 days of the Board’s rec-
ommendation. A primary financial regulatory agency 
that fails to impose such standards shall provide 
specific justification for such failure to act in the 
written notice from the agency to the Council and 
Board. 
SEC. 1108. EFFECT OF RESCISSION OF IDENTIFICATION. 
(a) NOTICE.—When the Council determines that a 
company or activity or practice no longer is subject to 
heightened prudential scrutiny, the Board shall inform the 
relevant primary financial regulatory agency or agencies 
(if different from the Board) of that finding. 
(b) DETERMINATION OF PRIMARY FINANCIAL REGU-
LATORY AGENCY
TO CONTINUE.—A primary financial 
regulatory agency that has imposed stricter prudential 
standards for financial stability purposes under this sub-
title shall determine whether standards that it has im-
posed under this subtitle should remain in effect.
117 
SEC. 1109. EMERGENCY FINANCIAL STABILIZATION. 
(a) IN GENERAL.—Upon the written determination 
of the Council that a liquidity event exists that could de-
stabilize the financial system (which determination shall 
be made upon a vote of not less than two-thirds of the 
members of the Council then serving) and with the written 
consent of the Secretary of the Treasury (after certifi-
cation by the President that an emergency exists), the 
Corporation may create a widely-available program de-
signed to avoid or mitigate adverse effects on systemic eco-
nomic conditions or financial stability by guaranteeing ob-
ligations of solvent insured depository institutions or sol-
vent depository institution holding companies (including 
any affiliates thereof), if necessary to prevent systemic fi-
nancial instability during times of severe economic dis-
tress, except that a guarantee of obligations under this 
section may not include provision of equity in any form. 
(b) POLICIES AND PROCEDURES.—Prior to exercising 
any authority under this section, the Corporation shall es-
tablish policies and procedures governing the issuance of 
guarantees. The terms and conditions of any guarantees 
issued shall be established by the Corporation with the ap-
proval of the Secretary of the Treasury and the Financial 
Stability Oversight Council. Such terms and conditions 
may include the Corporation requiring collateral as a con-
dition of any such guarantee.
118 
(c) CAP FOR GUARANTEED AMOUNT.— 
(1) IN GENERAL.—In connection with any pro-
gram established pursuant to subsection (a) and 
subject to paragraph (2), the Corporation may not 
have guaranteed debt outstanding at any time of 
more than $500,000,000,000 (as indexed to reflect 
growth in assets of insured depository institutions 
and depository institution holding companies as de-
termined by the Corporation). 
(2) ADDITIONAL
DEBT
GUARANTEE
AUTHOR-
ITY.—If the Corporation, with the concurrence of 
the Council and the Secretary (in consultation with 
the President), determines that the Corporation 
must guarantee debt in excess of $500,000,000,000 
(as indexed pursuant to paragraph (1)) to prevent 
systemic financial instability, the Corporation may 
transmit to the Congress a request for authority to 
guarantee debt in excess of $500,000,000,000 (as 
indexed pursuant to paragraph (1)). Such request 
shall be considered granted by Congress upon adop-
tion of a joint resolution approving such request. 
Such joint resolution shall be considered in the Sen-
ate under expedited procedures. 
(d) FUNDING.—
119 
(1) ADMINISTRATIVE EXPENSES AND COST OF 
GUARANTEES.—A program established pursuant to 
this section shall require funding only for the pur-
poses of paying administrative expenses and for pay-
ing a guarantee in the event that a guaranteed loan 
defaults. 
(2) FEES AND OTHER CHARGES.—The Corpora-
tion shall charge fees or other charges to all partici-
pants in such program established pursuant to this 
section to offset projected losses and administrative 
expenses. To the extent that a program established 
pursuant to this section has expenses or losses, the 
program will be funded entirely through fees or 
other charges assessed on participants in such pro-
gram. 
(3) EXCESS FUNDS.—If at the conclusion of 
such program there are any excess funds collected 
from the fees associated with such program, the 
funds will be deposited into the Systemic Dissolution 
Fund established pursuant to section 1609(n). 
(4) AUTHORITY
OF
CORPORATION.—For pur-
poses of conducting a program established pursuant 
to this section, the Corporation— 
(A) may borrow funds from the Secretary 
of the Treasury, which shall be repaid in full
120 
with interest through fees and charges paid by 
participants in accordance with paragraph (2), 
and there shall be available to the Corporation 
amounts in the Treasury not otherwise appro-
priated, including for the payment of reasonable 
administrative expenses; 
(B) may not borrow funds from the De-
posit Insurance Fund established pursuant to 
section 11(a)(4) of the Federal Deposit Insur-
ance Act; and 
(C) may not borrow funds from the Sys-
temic Dissolution Fund established pursuant to 
section 1609(n). 
(5) BACK-UP
SPECIAL
ASSESSMENT.—To the 
extent that the funds collected pursuant to para-
graph (2) are insufficient to cover any losses or ex-
penses (including monies borrowed pursuant to 
paragraph (4)) arising from a program established 
pursuant to this section, the Corporation shall im-
pose a special assessment solely on participants in 
the program. 
(e) PLAN
FOR MAINTENANCE
OR INCREASE
OF 
LENDING.—In connection with any application or request 
to participate in such program authorized pursuant to this 
section, a solvent entity seeking to participate in such pro-
121 
gram shall be required to submit to the Corporation a plan 
detailing how the use of such guaranteed funds will facili-
tate the increase or maintenance of such solvent com-
pany’s level of lending to consumers or small businesses. 
(f) SUNSET OF CORPORATION’S AUTHORITY.—The 
Corporation’s authority under subsections (a) and (d) and 
the authority to borrow funds from the Treasury under 
section 1609(o) shall expire on December 31, 2013. 
(g) RULE OF CONSTRUCTION.—For purposes of this 
section, a guarantee of deposits held by insured depository 
institutions shall not be treated as a debt guarantee pro-
gram. 
(h) DEFINITIONS.—For purposes of this section, the 
following definitions apply: 
(1) CORPORATION.—The term ‘‘Corporation’’ 
means the Federal Deposit Insurance Corporation. 
(2) DEPOSITORY INSTITUTION HOLDING COM-
PANY.—The term ‘‘depository institution holding 
company’’ has the meaning given the term in section 
3 of the Federal Deposit Insurance Act (12 U.S.C. 
1813). 
(3) INSURED DEPOSITORY INSTITUTION.—The 
term ‘‘insured depository institution’’ has the mean-
ing given the term in section 3 of the Federal De-
posit Insurance Act (12 U.S.C. 1813).
122 
(4) SOLVENT.—The term ‘‘solvent’’ means as-
sets are more than the obligations to creditors. 
SEC. 1110. ADDITIONAL RELATED AMENDMENTS. 
(a) FEDERAL DEPOSIT INSURANCE ACT RELATED 
AMENDMENTS.— 
(1) SUSPENSION OF PARALLEL FEDERAL DE-
POSIT INSURANCE ACT AUTHORITY.—Effective upon 
the date of the enactment of this section through 
December 31, 2013, the Corporation may not exer-
cise its authority under section 13(c)(4)(G)(i) of the 
Federal 
Deposit 
Insurance 
Act 
(12 
U.S.C. 
1823(c)(4)(G)(i)) to establish any widely-available 
debt guarantee program for which section 1109 
would provide authority. 
(2) FEDERAL
DEPOSIT
INSURANCE
ACT
AU-
THORITY
PRESERVED.—Effective 
December 
31, 
2013, the Corporation shall have the same authority 
pursuant to section 13(c)(4)(G)(i) of the Federal 
Deposit Insurance Act as the Corporation had prior 
to the date of enactment of this Act. 
(b) EFFECT
OF DEFAULT
ON
AN FDIC GUAR-
ANTEE.—If an insured depository institution or depository 
institution holding company participating in a program 
under section 1109 or any participant in a debt guarantee 
program established pursuant to section 13(c)(4)(G)(i) of
123 
the Federal Deposit Insurance Act defaults on any obliga-
tion guaranteed by the Corporation after the date of en-
actment of this Act, the Corporation may— 
(1) appoint itself as receiver for the insured de-
pository institution that defaults; 
(2) with respect to any other participating com-
pany that is not an insured depository institution 
that defaults— 
(A) require consideration of whether a de-
termination shall be made as provided in sec-
tion 1603 to resolve the company under subtitle 
G; and 
(B) if the Corporation is not appointed re-
ceiver pursuant to subtitle G within 30 days of 
the date of default, require the company to file 
a petition for bankruptcy under section 301 of 
title 11, United States Code, or file a petition 
for bankruptcy against the company under sec-
tion 303 of title 11, United States Code. 
(c) AUTHORITY TO FILE INVOLUNTARY PETITION 
FOR BANKRUPTCY.—Section 303 of title 11, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘(m) Notwithstanding subsections (a) and (b), an in-
voluntary case may be commenced by the Federal Deposit
124 
Insurance Corporation against a depository institution 
holding company as defined in section 3 of the Federal 
Deposit Insurance Act (12 U.S.C. 1813) or other company 
participating in a guarantee program established by the 
Corporation on the ground that the company has defaulted 
on a debt or obligation guaranteed by the Corporation.’’. 
(d) BANKRUPTCY PRIORITY
FOR DEFAULTS
ON 
DEBT GUARANTEED PURSUANT TO SECTION 1109.—Sec-
tion 507(a)(9) of title 11, United States Code, is amended 
by inserting before the period at the end the following: 
‘‘and allowed unsecured claims based upon any debt to 
the Federal Deposit Insurance Corporation that arose 
prior to the commencement of the case under this title, 
as a result of the debtor’s default on a guarantee provided 
by the Corporation pursuant to section 1109 of the Finan-
cial Stability Improvement Act of 2009 or the Federal De-
posit Insurance Act, under a program established by the 
Corporation after the date of enactment of the Financial 
Stability Improvement Act of 2009’’. 
SEC. 1111. CORPORATION MAY RECEIVE WARRANTS WHEN 
PAYING OR RISKING TAXPAYER FUNDS. 
(a) IN GENERAL.—In connection with any payment, 
credit extension, or guarantee or any commitment under 
section 1109 or 1604, the Corporation may obtain from 
the insured depository institution, depository institution
125 
holding company (including any affiliates thereof), or cov-
ered financial company, as the case may be— 
(1) in the case of an insured depository institu-
tion, depository institution holding company (includ-
ing any affiliates thereof), or covered financial com-
pany, the securities of which are traded on a na-
tional securities exchange, a warrant giving the right 
to the Corporation to receive nonvoting common 
stock or preferred stock in such financial institution, 
or voting stock with respect to which, the Corpora-
tion agrees not to exercise voting power, as the Cor-
poration determines appropriate; or 
(2) in the case of any insured depository insti-
tution, depository institution holding company (in-
cluding any affiliates thereof), or covered financial 
company other than one described in paragraph (1), 
a warrant for common or preferred stock, or a sen-
ior debt instrument from such financial institution, 
as described in subsection (b)(3). 
(b) TERMS AND CONDITIONS.—The terms and condi-
tions of any warrant or senior debt instrument required 
under subsection (a) shall meet the following require-
ments: 
(1) PURPOSES.—Such terms and conditions 
shall, at a minimum, be designed—