HR 4173 RFS
(12) ADMINISTRATIVE
REVIEW
OF
DISMISSAL 
ORDERS.— 
(A) TIMELY PETITION REQUIRED.—A di-
rector or senior executive officer dismissed pur-
suant 
to 
an 
order 
under 
paragraph 
(7)(B)(v)(II) may obtain review of that order 
by filing a written petition for reinstatement 
with the Board not later than 10 days after re-
ceiving notice of the dismissal. 
(B) PROCEDURE.— 
(i) HEARING REQUIRED.—The Board 
shall give the petitioner an opportunity 
to— 
(I) submit written materials in 
support of the petition; and 
(II) 
appear, 
personally 
or 
through counsel, before 1 or more 
members of the Board or designated 
employees of the Board. 
(ii) DEADLINE
FOR
HEARING.—The 
Board shall— 
(I) schedule the hearing referred 
to in clause (i)(II) promptly after the 
petition is filed; and 
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(II) hold the hearing not later 
than 30 days after the petition is 
filed, unless the petitioner requests 
that the hearing be held at a later 
time. 
(iii) DEADLINE FOR DECISION.—Not 
later than 60 days after the date of the 
hearing, the Board shall— 
(I) by order, grant or deny the 
petition; 
(II) if the order is adverse to the 
petitioner, set forth the basis for the 
order; and 
(III) notify the petitioner of the 
order. 
(C) STANDARD FOR REVIEW OF DISMISSAL 
ORDERS.—The petitioner shall bear the burden 
of proving that the petitioner’s continued em-
ployment would materially strengthen the abil-
ity of the financial holding company subject to 
stricter standards— 
(i) to become well capitalized, to the 
extent that the order is based on the cap-
ital level of the financial holding company 
subject to stricter standards or such com-
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pany’s failure to submit or implement a 
capital restoration plan; and 
(ii) to correct the unsafe or unsound 
condition or unsafe or unsound practice, to 
the extent that the order is based on para-
graph (8)(A). 
(13) ENFORCEMENT AUTHORITY FOR FOREIGN 
FINANCIAL HOLDING COMPANY SUBJECT TO STRICT-
ER STANDARDS.— 
(A) TERMINATION
AUTHORITY.—If the 
Board believes that a condition, practice, or ac-
tivity of a foreign financial holding company 
subject to stricter standards does not comply 
with this title or the rules or orders prescribed 
by the Board under this title or otherwise poses 
a threat to financial stability, the Board may, 
after notice and opportunity for a hearing, take 
such actions as necessary to mitigate such risk, 
including ordering a foreign financial holding 
company subject to stricter standards in the 
United States to terminate the activities of such 
branch, agency, or subsidiary. 
(B) DISCRETION TO DENY HEARING.—The 
Board may issue an order under paragraph (1) 
without providing for an opportunity for a hear-
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ing if the Board determines that expeditious ac-
tion is necessary in order to protect the public 
interest. 
(f) REPORTS REGARDING RAPID AND ORDERLY RES-
OLUTION AND CREDIT EXPOSURE.— 
(1) IN
GENERAL.—The Board shall require 
each financial holding company subject to stricter 
standards incorporated or organized in the United 
States to report periodically to the Board on— 
(A) its plan for rapid and orderly resolu-
tion in the event of severe financial distress; 
(B) the nature and extent to which the fi-
nancial holding company subject to stricter 
standards has credit exposure to other signifi-
cant financial companies; and 
(C) the nature and extent to which other 
significant financial companies have credit ex-
posure to the financial holding company subject 
to stricter standards. 
(2) NO LIMITING EFFECT.—A rapid resolution 
plan submitted in accordance with this subsection 
shall not be binding on a receiver appointed under 
subtitle G, a bankruptcy court, or any other author-
ity that is authorized or required to resolve the fi-
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nancial holding company subject to stricter stand-
ards or any of its subsidiaries or affiliates. 
(3) REPORTING TRIGGERED BY STRESS TEST 
RESULTS.— 
(A) FINANCIAL HOLDING COMPANIES SUB-
JECT
TO
STRICTER
STANDARDS.—Each time 
the results of a quarterly stress test under base-
line or adverse conditions conducted by a finan-
cial holding company subject to stricter stand-
ards under section 1114(a) or the results of a 
stress test of that financial holding company 
subject to stricter standards conducted by the 
Board under subsection (g) indicate that the fi-
nancial holding company subject to stricter 
standards is, in the determination of the Board, 
significantly or critically undercapitalized, that 
financial holding company subject to stricter 
standards shall submit a rapid resolution plan 
in accordance with this subsection that has 
been revised to address the causes of those re-
sults. 
(B) FINANCIAL COMPANIES THAT ARE NOT 
FINANCIAL HOLDING COMPANIES SUBJECT TO 
STRICTER STANDARDS.—Each time the results 
of a semiannual stress test under baseline or 
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adverse conditions conducted by a financial 
company under section 1114(b) indicate that 
the financial company is, in the determination 
of the Board, significantly or critically under-
capitalized, that financial company shall be re-
quired to report under this subsection. The 
Board shall prescribe regulations establishing 
expedited procedures for such reporting. 
(C) TRANSPARENCY.—Any rapid resolution 
plan submitted pursuant to this paragraph shall 
be subject to any restrictions regarding the dis-
closure of any other rapid resolution plan sub-
mitted pursuant to this subsection. 
(g) STRESS TESTS.— 
(1) The Board, in coordination with the appro-
priate primary financial regulatory agency, shall 
conduct annual stress tests of each financial holding 
company subject to stricter standards. The Board 
may, as the Board determines appropriate, conduct 
stress tests of financial companies that are not fi-
nancial holding companies subject to stricter stand-
ards. The Board shall publish a summary of the re-
sults of such stress tests. 
(2) The Board shall issue regulations to define 
the term ‘‘stress test’’ for purposes of this sub-
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