IB 
Union Calendar No. 508 
112TH CONGRESS 
2D SESSION 
H. R. 1838 
[Report No. 112–476, Part I] 
To repeal a provision of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act prohibiting any Federal bailout of swap dealers or participants. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 11, 2011 
Ms. HAYWORTH 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 
MAY 11, 2012 
Reported from the Committee on Financial Services with amendments 
[Strike out all after the enacting clause and insert the part printed in italic] 
MAY 11, 2012 
Referral to the Committee on Agriculture extended for a period ending not 
later than May 30, 2012 
MAY 30, 2012 
Referral to the Committee on Agriculture extended for a period ending not 
later than July 16, 2012 
JULY 16, 2012 
Referral to the Committee on Agriculture extended for a period ending not 
later than September 14, 2012 
SEPTEMBER 14, 2012 
Referral to the Committee on Agriculture extended for a period ending not 
later than November 16, 2012 
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NOVEMBER 16, 2012 
The Committee on Agriculture discharged; committed to the Committee of the 
Whole House on the State of the Union and ordered to be printed 
A BILL 
To repeal a provision of the Dodd-Frank Wall Street Reform 
and Consumer Protection Act prohibiting any Federal 
bailout of swap dealers or participants. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. REPEAL. 
Section 716 of the Dodd-Frank Wall Street Reform 
and Consumer Protection Act (15 U.S.C. 8305) is re-
pealed. 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Swaps Bailout Preven-
tion Act’’. 
SEC. 2. REFORM OF PROHIBITION ON SWAP ACTIVITY AS-
SISTANCE. 
Section 716 of the Dodd-Frank Wall Street Reform 
and Consumer Protection Act (15 U.S.C. 8305) is amend-
ed— 
(1) in subsection (b), by adding at the end the 
following: 
‘‘(3) COVERED DEPOSITORY INSTITUTION.—The 
term ‘covered depository institution’ means— 
‘‘(A) an insured depository institution; and 
‘‘(B) a United States uninsured branch or 
agency of a foreign bank that has a prudential 
regulator.’’; 
(2) in subsection (c)— 
(A) in the heading for such subsection, by 
striking ‘‘INSURED’’ and inserting ‘‘COVERED’’; 
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TKELLEY on DSK3SPTVN1PROD with
(B) by striking ‘‘an insured’’ and inserting 
‘‘a covered’’; 
(C) by striking ‘‘such insured’’ and insert-
ing ‘‘such covered’’; and 
(D) by striking ‘‘or savings and loan hold-
ing company’’ and inserting ‘‘savings and loan 
holding company, or foreign banking organiza-
tion (as such term is defined under Regulation 
K (12 C.F.R. 211.21(o)))’’; 
(3) by amending subsection (d) to read as fol-
lows: 
‘‘(d) ONLY BONA FIDE HEDGING AND TRADITIONAL 
BANK ACTIVITIES PERMITTED.— 
‘‘(1) IN
GENERAL.—The prohibition in sub-
section (a) shall not apply to any covered depository 
institution that limits its swap and security-based 
swap activities to the following: 
‘‘(A) HEDGING AND OTHER SIMILAR RISK 
MITIGATION
ACTIVITIES.—Hedging and other 
similar risk mitigating activities directly related 
to the covered depository institution’s activities. 
‘‘(B) NON-STRUCTURED FINANCE SWAP AC-
TIVITIES.—Acting as a swaps entity for swaps or 
security-based swaps other than a structured fi-
nance swap. 
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‘‘(C) CERTAIN STRUCTURED FINANCE SWAP 
ACTIVITIES.—Acting as a swaps entity for swaps 
or security-based swaps that are structured fi-
nance swaps, if— 
‘‘(i) such structured finance swaps are 
undertaken for hedging or risk management 
purposes; or 
‘‘(ii) each asset-backed security under-
lying such structured finance swaps is of a 
credit quality and of a type or category 
with respect to which the prudential regu-
lators have jointly adopted rules author-
izing swap or security-based swap activity 
by covered depository institutions. 
‘‘(2) DEFINITIONS.—For purposes of this sub-
section: 
‘‘(A) STRUCTURED
FINANCE
SWAP.—The 
term ‘structured finance swap’ means a swap or 
security-based swap based on an asset-backed se-
curity (or group or index primarily comprised of 
asset-backed securities). 
‘‘(B) ASSET-BACKED SECURITY.—The term 
‘asset-backed security’ has the meaning given 
such term under section 3(a) of the Securities 
Exchange Act of 1934 (15 U.S.C. 78c(a)).’’; 
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TKELLEY on DSK3SPTVN1PROD with
(4) in subsection (e), by striking ‘‘an insured’’ 
and inserting ‘‘a covered’’; 
(5) in subsection (f)— 
(A) by striking ‘‘an insured’’ and inserting 
‘‘a covered’’; and 
(B) by striking ‘‘the insured’’ each place 
such term appears and inserting ‘‘the covered’’; 
(6) in subsection (g), by striking ‘‘insured’’ and 
inserting ‘‘covered’’; 
(7) in subsection (m), by striking ‘‘An insured’’ 
and inserting ‘‘A covered’’; and 
(8) by adding at the end the following: 
‘‘(n) FOREIGN SWAP ACTIVITY.— 
‘‘(1) IN GENERAL.—This section shall not apply 
to swap or security-based swap activity conducted 
outside 
the 
United 
States 
with 
a 
non-U.S. 
counterparty by a non-U.S. swaps entity. 
‘‘(2) DEFINITIONS.—For purposes of this sub-
section, the terms ‘non-U.S. swaps entity’ and ‘non- 
U.S. 
counterparty’ 
mean 
a 
swaps 
entity 
or 
counterparty, respectively, that is licensed, in the case 
of a foreign branch of a United States depository in-
stitution, or organized under the laws of a jurisdic-
tion outside the United States.’’. 
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Amend the title so as to read: ‘‘A bill to amend pro-
visions in section 716 of the Dodd-Frank Wall Street Re-
form and Consumer Protection Act relating to Federal 
assistance for swaps entities.’’. 
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Union Calendar No. 508 
112TH CONGRESS 
2D SESSION 
H. R. 1838 
[Report No. 112–476, Part I] 
A BILL 
To repeal a provision of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act pro-
hibiting any Federal bailout of swap dealers or 
participants. 
NOVEMBER 16, 2012 
The Committee on Agriculture discharged; committed to 
the Committee of the Whole House on the State of the 
Union and ordered to be printed 
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