I 
112TH CONGRESS 
2D SESSION 
H. R. 5714 
To provide for a safe, accountable, fair, and efficient banking system, and 
for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 10, 2012 
Mr. MILLER of North Carolina (for himself and Mr. ELLISON) introduced the 
following bill; which was referred to the Committee on Financial Services 
A BILL 
To provide for a safe, accountable, fair, and efficient banking 
system, 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 ‘‘Safe, Accountable, 
Fair, and Efficient Banking Act of 2012’’ or the ‘‘SAFE 
Banking Act of 2012’’. 
SEC. 2. DEFINITIONS. 
(a) IN GENERAL.—As used in this Act— 
(1) the term ‘‘appropriate Federal regulator’’ 
means— 
VerDate Mar 15 2010 
01:09 May 13, 2012
Jkt 019200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H5714.IH
H5714
tjames on DSK6SPTVN1PROD with BILLS
(A) the Board of Governors of the Federal 
Reserve System (in this Act referred to as the 
‘‘Board’’); 
(B) the Comptroller of the Currency (in 
this Act referred to as the ‘‘Comptroller’’; or 
(C) the Federal Deposit Insurance Cor-
poration (in this Act referred to as the ‘‘Cor-
poration’’); 
(2) the term ‘‘average total consolidated assets’’ 
has the same meaning as in part 225 of title 12, 
Code of Federal Regulations, as in effect on the date 
of enactment of this Act, or any successor thereto; 
(3) the term ‘‘FDIC-assessed deposits’’ means 
the assessment base, as computed under part 327 of 
title 12, Code of Federal Regulations, as in effect on 
the date of enactment of this Act, or any successor 
thereto; 
(4) the term ‘‘tangible common equity’’ means 
qualifying common stockholders’ equity plus retained 
earnings; 
(5) the term ‘‘liabilities’’ equals a financial com-
pany’s total assets less tier 1 capital; 
(6) the term ‘‘nondeposit liabilities’’ means the 
total assets of a bank holding company, less tier 1 
capital, less FDIC-assessed deposits; and 
VerDate Mar 15 2010 
01:09 May 13, 2012
Jkt 019200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H5714.IH
H5714
tjames on DSK6SPTVN1PROD with BILLS
(7) the term ‘‘tier 1 capital’’ has the same 
meaning as in part 225 of title 12, Code of Federal 
Regulations, as in effect on the date of enactment of 
this Act, or any successor thereto. 
(b) NONBANK FINANCIAL COMPANY DEFINITIONS.— 
(1) FOREIGN NONBANK FINANCIAL COMPANY.— 
The term ‘‘foreign nonbank financial company’’ 
means a company (other than a company that is, or 
is treated in the United States, as a bank holding 
company or a subsidiary thereof) that is— 
(A) incorporated or organized in a country 
other than the United States; and 
(B) substantially engaged in, including 
through a branch in the United States, activi-
ties in the United States that are financial in 
nature (as defined in section 4(k) of the Bank 
Holding Company Act of 1956). 
(2) U.S. NONBANK FINANCIAL COMPANY.—The 
term ‘‘U.S. nonbank financial company’’ means a 
company (other than a bank holding company or a 
subsidiary thereof) that is— 
(A) incorporated or organized under the 
laws of the United States or any State; and 
(B) substantially engaged in activities in 
the United States that are financial in nature 
VerDate Mar 15 2010 
01:09 May 13, 2012
Jkt 019200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H5714.IH
H5714
tjames on DSK6SPTVN1PROD with BILLS
(as defined in section 4(k) of the Bank Holding 
Company Act of 1956). 
(3) NONBANK FINANCIAL COMPANY.—The term 
‘‘nonbank 
financial 
company’’ 
means 
a 
U.S. 
nonbank financial company and a foreign nonbank 
financial company. 
SEC. 3. CONCENTRATION LIMITS. 
(a) NATIONWIDE CONCENTRATION LIMITS.—Section 
3(d) of the Bank Holding Company Act of 1956 (12 
U.S.C. 1842(d)) is amended— 
(1) in paragraph (2), by striking subparagraph 
(A) and inserting the following: 
‘‘(A) NATIONWIDE
CONCENTRATION
LIM-
ITS.—No bank holding company may hold more 
than 10 percent of the total amount of deposits 
of insured depository institutions in the United 
States.’’; and 
(2) by striking paragraph (5) and inserting the 
following: 
‘‘(5) ENFORCED
COMPLIANCE.—The Board 
shall require any bank holding company having a de-
posit concentration in violation of this subsection to 
sell or otherwise transfer deposit liabilities to unaf-
filiated firms to bring the company into compliance 
with this subsection.’’. 
VerDate Mar 15 2010 
01:09 May 13, 2012
Jkt 019200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H5714.IH
H5714
tjames on DSK6SPTVN1PROD with BILLS
(b) TREATMENT OF LIABILITIES.—Section 14 of the 
Bank Holding Company Act of 1956 (12 U.S.C. 1852) 
is amended— 
(1) in subsection (a), by striking paragraph (3) 
and inserting the following: 
‘‘(3) the term ‘liabilities’ means— 
‘‘(A) with respect to a United States finan-
cial company— 
‘‘(i) the total assets of the financial 
company, including all off-balance-sheet as-
sets, including financings of assets for 
which the issuer has more than minimal 
economic or reputational risks or rewards; 
less 
‘‘(ii) the total regulatory capital of the 
financial company; 
‘‘(B) with respect to a foreign-based finan-
cial company— 
‘‘(i) the total assets of the United 
States operations of the financial company, 
including all off-balance-sheet assets, in-
cluding financings of assets for which the 
issuer has more than minimal economic or 
reputational risks or rewards of the finan-
cial company; less 
VerDate Mar 15 2010 
01:09 May 13, 2012
Jkt 019200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H5714.IH
H5714
tjames on DSK6SPTVN1PROD with BILLS