I 
115TH CONGRESS 
1ST SESSION H. R. 4659 
To require the appropriate Federal banking agencies to recognize the 
exposure-reducing nature of client margin for cleared derivatives. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 14, 2017 
Mr. LUETKEMEYER (for himself, Mr. LUCAS, Mr. VELA, Mr. O’HALLERAN, 
and Mr. DAVID SCOTT of Georgia) introduced the following bill; which 
was referred to the Committee on Financial Services 
A BILL 
To require the appropriate Federal banking agencies to rec-
ognize the exposure-reducing nature of client margin for 
cleared derivatives. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. TREATMENT OF CLIENT MARGIN. 
(a) TREATMENT OF CLIENT MARGIN FOR INSURED 
DEPOSITORY INSTITUTIONS.—Section 18(n) of the Fed-
eral Deposit Insurance Act (12 U.S.C. 1828(n)) is amend-
ed— 
(1) by striking ‘‘No appropriate’’ and inserting 
the following: 
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‘‘(1) UNIDENTIFIED INTANGIBLE ASSETS.—No 
appropriate’’; and 
(2) by adding at the end the following: 
‘‘(2) TREATMENT
OF
CLIENT
MARGIN.—For 
purposes of any leverage-based capital rule, guide-
line, standard, or requirement promulgated, pre-
scribed, or imposed by any appropriate Federal 
banking agency on insured depository institutions, 
the amount of any initial margin provided by a cli-
ent of an insured depository institution with respect 
to a centrally-cleared derivative obligation shall be 
deducted from the amount of any leverage exposure 
arising from the insured depository institution’s 
guarantee of the client’s derivative obligation to the 
central counterparty.’’. 
(b) TREATMENT
OF CLIENT MARGIN
FOR BANK 
HOLDING COMPANIES.—Section 5(c)(3) of the Bank 
Holding Company Act of 1956 (12 U.S.C. 1844(c)(3)) is 
amended— 
(1) by adding at the end the following: 
‘‘(D) TREATMENT OF CLIENT MARGIN.— 
For purposes of any leverage-based capital rule, 
guideline, standard, or requirement promul-
gated, prescribed, or imposed by the Board on 
bank holding companies, the amount of any ini-
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tial margin provided by a client of a bank hold-
ing company or affiliate thereof with respect to 
a centrally-cleared derivative obligation shall be 
deducted from the amount of any leverage expo-
sure arising from the guarantee by the bank 
holding company or affiliate thereof of the cli-
ent’s derivative obligation to the central 
counterparty.’’. 
(c) TREATMENT OF CLIENT MARGIN FOR SAVINGS 
AND LOAN HOLDING COMPANIES.—Section 10(g)(1) of 
the Home Owners’ Loan Act (12 U.S.C. 1467a(g)(1)) is 
amended— 
(1) by striking ‘‘The Board’’ and inserting the 
following: 
‘‘(A) REGULATIONS
AND
ORDERS.—The 
Board’’; and 
(2) by adding at the end the following: 
‘‘(B) TREATMENT
OF
CLIENT
MARGIN.—For 
purposes of any leverage-based capital rule, guide-
line, standard, or requirement promulgated, pre-
scribed, or imposed by the Board on savings and 
loan holding companies, the amount of any initial 
margin provided by a client of a savings and loan 
holding company or affiliate thereof with respect to 
a centrally-cleared derivative obligation shall be de-
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ducted from the amount of any leverage exposure 
arising from the guarantee by the savings and loan 
holding company or affiliate thereof of the client’s 
derivative obligation to the central counterparty.’’. 
(d) AMENDMENTS
TO LEVERAGE-BASED CAPITAL 
REGULATIONS.—Not later than the end of the 3-month 
period beginning on the date of the enactment of this Act, 
the Federal Deposit Insurance Corporation, the Board of 
Governors of the Federal Reserve System, and the Comp-
troller of the Currency shall amend their rules to imple-
ment the amendments made by this Act. 
Æ 
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