I 
111TH CONGRESS 
1ST SESSION H. R. 1754 
To create a systemic risk monitor for the financial system of the United 
States, to oversee financial regulatory activities of the Federal Govern-
ment, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 26, 2009 
Mr. CASTLE introduced the following bill; which was referred to the Com-
mittee on Financial Services, and in addition to the Committee on Agri-
culture, for a period to be subsequently determined by the Speaker, in 
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned 
A BILL 
To create a systemic risk monitor for the financial system 
of the United States, to oversee financial regulatory ac-
tivities of the Federal Government, and for other pur-
poses. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Financial System Stabilization and Reform Act of 
2009’’. 
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(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
TITLE I—FINANCIAL SYSTEM REGULATION 
Sec. 101. Definitions. 
Subtitle A—Financial Stability Council 
Sec. 111. Establishment and structure. 
Sec. 112. Duties and authority of the Chairperson. 
Sec. 113. Duties and authority of the Council. 
Sec. 114. Judicial review. 
Sec. 115. Civil penalties. 
Sec. 116. Precedence of council actions. 
Sec. 117. Conflicting provisions terminated. 
Sec. 118. Reporting and recordkeeping for positions involving credit-default 
swaps. 
Sec. 119. Federal Reserve Board authority over investment bank holding com-
panies. 
Sec. 120. Regulations on clearinghouse operations and fraudulent, deceptive, 
and manipulative acts. 
Subtitle B—Administrative Provision 
Sec. 151. Annual budget. 
Sec. 152. Personnel matters. 
Sec. 153. Personnel programs and policies. 
Sec. 154. Executive schedule matters. 
Sec. 155. Transitional authorities. 
Sec. 156. Prohibition on political campaigning. 
Sec. 157. Authorization of appropriations. 
Sec. 158. Savings provision. 
TITLE II—ABOLISHMENT AND TRANSFER OF FUNCTIONS OF 
THE OFFICE OF THRIFT SUPERVISION 
Sec. 201. Definitions. 
Sec. 202. Transfer of powers of the Director of the Office of Thrift Super-
vision. 
Sec. 203. Abolishment of the Office of Thrift Supervision. 
Sec. 204. Transition period. 
Sec. 205. Savings provisions. 
Sec. 206. Continuation of regulations. 
Sec. 207. Transfer of functions, personnel, and property. 
Sec. 208. Conforming amendments to the Home Owners’ Loan Act. 
Sec. 209. Conforming amendments to the Federal Deposit Insurance Act. 
Sec. 210. Additional Conforming Amendments. 
Sec. 211. Additional conforming references. 
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TITLE I—FINANCIAL SYSTEM 
REGULATION 
SEC. 101. DEFINITIONS. 
For purposes of this title, the following definitions 
shall apply: 
(1) COUNCIL.—The term ‘‘Council’’ means the 
Financial Stability Council established under section 
111. 
(2) PRODUCT OR ACTIVITY THAT IS FINANCIAL 
IN NATURE.—The term ‘‘product or activity that is 
financial in nature’’ means products and activities 
listed in paragraph (4) of section 4(k) of the Bank 
Holding 
Company 
Act 
of 
1956 
(12 
U.S.C. 
1843(k)(4)), other than the activities and products 
listed in subparagraph (B) of such paragraph (4). 
(3) FINANCIAL SYSTEM.—the term ‘‘financial 
system’’ means any product or activity that is finan-
cial in nature, financial institutions, or financial 
markets. 
(4) FEDERAL
FINANCIAL
REGULATOR.—The 
term ‘‘Federal financial regulator’’ means, individ-
ually and collectively, as the context requires— 
(A) the Comptroller of the Currency; 
(B) the Board of Governors of the Federal 
Reserve System; 
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(C) the Federal Deposit Insurance Cor-
poration; 
(D) the National Credit Union Administra-
tion; 
(E) the Securities and Exchange Commis-
sion; 
(F) the Commodity Futures Trade Com-
mission; 
(G) the Treasury; 
(H) the Pension Benefit Guarantee Cor-
poration; 
(I) the Federal Housing Finance Agency; 
(J) any other department or agency or 
component thereof, designated by the President 
as a Federal financial regulator; and 
(K) any combination of the agencies speci-
fied in this paragraph, with respect to any given 
institution, as otherwise provided by law. 
(5) CHAIRPERSON.—The term ‘‘Chairperson’’, 
except as the context otherwise requires, means the 
Chairperson of the Financial Stability Council. 
(6) BOARD.—The term ‘‘Board’’ means the 
Board of Governors of the Federal Reserve System. 
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(7) REGULATION, 
RULE, 
REGULATORY
AC-
TION.—The terms ‘‘regulation’’, ‘‘rule’’, and ‘‘regu-
latory action’’— 
(A) mean an agency statement of general 
applicability and future effect, or any amend-
ments or modifications thereto, which the Coun-
cil believes to have the force and effect of law, 
that is designed to implement, interpret, or pre-
scribe law or policy or to describe the procedure 
or practice requirements of an agency; and 
(B) do not include— 
(i) regulations or rules that are lim-
ited to agency organization, management, 
or personnel matters, unless expressly pro-
vided otherwise in this title; 
(ii) any rule, regulation, or order 
issued by the Board relating to the mone-
tary policy functions of the Board; or 
(iii) any other category of regulations 
exempted at the discretion of the Council. 
(8) SYSTEMIC RISK.—The term ‘‘systemic risk’’ 
means the risk that a product or activity that is fi-
nancial in nature, or that a default by a financial in-
stitution, will produce failures of, or significant 
losses to, other financial institutions, resulting in 
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substantial increases in the cost of capital or sub-
stantial decreases in the availability of capital, or 
substantial financial market price volatility. 
Subtitle A—Financial Stability 
Council 
SEC. 111. ESTABLISHMENT AND STRUCTURE. 
(a) IN GENERAL.—There is established the Financial 
Stability Council, which shall be an independent establish-
ment, as that term is defined in section 104 of title 5, 
United States Code. 
(b) CHAIRPERSON.—The Council shall be headed by 
a Chairperson, who shall be appointed by the President, 
by and with the advice and consent of the Senate, from 
among individuals having expertise in the financial serv-
ices industry. 
(c) PROHIBITION
ON DUAL SERVICE.—The indi-
vidual serving in the position of Chairperson may not, dur-
ing such service, also serve as the head of any Federal 
financial regulator. 
(d) MEMBERSHIP.—The members of the Council 
shall be— 
(1) the Chairperson; 
(2) the Secretary of the Treasury; 
(3) the Chairman of the Board of Governors of 
the Federal Reserve System; 
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(4) the Chairperson of the Board of Directors 
of the Federal Deposit Insurance Corporation; 
(5) the Chairman of the National Credit Union 
Administration; 
(6) the Chairman of the Securities and Ex-
change Commission; and 
(7) the Chairman of the Commodity Futures 
Trading Commission. 
SEC. 112. DUTIES AND AUTHORITY OF THE CHAIRPERSON. 
(a) DUTIES.—The Chairperson— 
(1) shall— 
(A) serve as the principal advisor to the 
President on matters related to oversight, moni-
toring, and prevention of systemic risk affecting 
the financial system of the United States; 
(B) review all potential rules, regulations, 
and regulatory actions of the Federal financial 
regulators (before such rule or regulation is 
proposed), to determine those which relate to 
systemic risk affecting the financial system of 
the United States, and shall therefore be sub-
ject to review by the Council under this title; 
(C) oversee and direct systemic risk regu-
latory policy concerning the financial system of 
the United States, including by identifying any 
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absence in regulatory authority among the Fed-
eral financial regulators that may contribute to 
such risk; 
(D) convene meetings of the Council at 
least quarterly, and more often, as the Chair-
person determines necessary; 
(E) set the agenda for meetings of the 
Council; 
(F) manage and oversee the staff of the 
Council; and 
(G) make recommendations for action by 
the Council on matters relating to monitoring 
and preventing systemic risk to the financial 
system of the United States, and for regulating 
the financial system of the United States to 
prevent such risk; and 
(2) may review existing rules, regulations, and 
regulatory actions of the Federal financial regulators 
and recommend to the Council any revisions or re-
peals thereof for the purpose of monitoring and pre-
venting systemic risk to the financial system of the 
United States. 
(b) AGENCY COOPERATION.— 
(1) IN GENERAL.—The Chairperson shall have 
access to, and may require the production of, any 
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data or information from the Federal financial regu-
lators, as necessary— 
(A) to monitor areas of potential systemic 
risk in the financial system of the United 
States; 
(B) to monitor and coordinate the actions 
of the Federal financial regulators; or 
(C) to carry out any of the provisions of 
this title. 
(2) SUBMISSIONS BY REGULATORS.—Any Fed-
eral financial regulator in possession of data or in-
formation relevant to preventing systemic risk to the 
financial system of the United States shall provide 
that information to the Chairperson in a timely 
manner. 
(3) FINANCIAL
DATA
COLLECTION.—If the 
Chairperson determines that it is necessary to carry 
out any of the provisions of this title, the Chair-
person may direct a Federal financial regulator, con-
sistent with the authorities of such regulator, to re-
quire the production of any data or information 
from any entity regarding any product or activity 
that the Chairperson determines may be a product 
or activity that is financial in nature. 
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(c) INSURANCE INFORMATION.—To carry out this 
title, the Chairperson may request— 
(1) data and information from States regarding 
the solvency of State regulated insurers and affili-
ates thereof; and 
(2) data and information from such insurers 
and affiliates regarding any product or activity that 
the Council determines may be a product or activity 
that is financial in nature. 
(d) BUDGET RECOMMENDATIONS.—With respect to 
budget requests and appropriations for the Federal finan-
cial regulators, the Chairperson shall, based on economic 
priorities established by the President, provide to the 
heads of the Federal financial regulators guidance for de-
veloping the budget of each such regulator pertaining to 
the activities of such regulator that are deemed by the 
Chairperson as relating to or affecting systemic risk to 
the financial system of the United States. 
(e) REPORTS TO THE PRESIDENT AND THE CON-
GRESS.—Not later than 6 months after the date of the 
enactment of this Act, and biannually thereafter, the 
Chairperson shall provide a report to the President and 
the Congress on— 
(1) the state of the financial system of the 
United States; 
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term appears and inserting ‘‘Comptroller 
of the Currency’’; 
(ii) in the matter following paragraph 
(2)(B)(ii), by striking ‘‘Director’’ and in-
serting ‘‘Comptroller of the Currency’’; and 
(iii) by amending paragraph (3)(B) to 
read as follows: 
‘‘(B) AUTHORITY OF COMPTROLLER.—The 
section does not limit the authority of the 
Comptroller of the Currency to issue regula-
tions to promote safety and soundness or to en-
force compliance with other applicable laws.’’; 
(9) in section 19(e) (12 U.S.C. 1829)— 
(A) by striking ‘‘Director of the Office of 
Thrift Supervision’’ each place that term ap-
pears and inserting ‘‘Comptroller of the Cur-
rency’’; and 
(B) in the heading of paragraph (2), by 
striking ‘‘DIRECTOR’’ and inserting ‘‘COMP-
TROLLER’’; 
(10) in section 28 (12 U.S.C. 1831e)— 
(A) in subsection (e), by striking ‘‘Director 
of the Office of Thrift Supervision’’ each place 
that term appears and inserting ‘‘Comptroller 
of the Currency’’; and 
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