I 
118TH CONGRESS 
2D SESSION 
H. R. 8153 
To amend the Wall Street Transparency and Accountability Act of 2010 
to provide covered banking institutions with certain exemptions related 
to interest rate swaps, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 29, 2024 
Mr. MOONEY (for himself, Mr. DONALDS, and Mr. OGLES) introduced the fol-
lowing bill; which was referred to the Committee on Financial Services, 
and in addition to the Committee on Agriculture, for a period to be sub-
sequently determined by the Speaker, in each case for consideration of 
such provisions as fall within the jurisdiction of the committee concerned 
A BILL 
To amend the Wall Street Transparency and Accountability 
Act of 2010 to provide covered banking institutions with 
certain exemptions related to interest rate swaps, 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 ‘‘Bank Risk Reduction 
Act of 2024’’. 
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SEC. 2. EXEMPTIONS FOR CERTAIN INTEREST RATE SWAPS 
OF COVERED BANKING INSTITUTIONS. 
(a) IN GENERAL.—The Wall Street Transparency 
and Accountability Act of 2010 (12 U.S.C. 8301 et seq.) 
is amended by inserting after section 754 the following: 
‘‘SEC. 755. EXEMPTIONS FOR CERTAIN INTEREST RATE 
SWAPS OF COVERED BANKING INSTITUTIONS. 
‘‘(a) IN GENERAL.—A covered banking institution— 
‘‘(1) shall be exempt from any clearing or mar-
gin requirements applicable to an interest rate swap 
that hedges interest rate risk of debt securities or 
loans held on the balance sheet of the covered bank-
ing institution, including any requirements under 
sections 2(h) or 4s(e) of Commodity Exchange Act 
and the regulations promulgated thereunder; 
‘‘(2) may use hedge accounting with respect to 
debt securities or loans held on the balance sheet of 
the covered banking institution; 
‘‘(3) is not subject to any requirement, includ-
ing the Financial Accounting Standards Board’s Ac-
counting Standard Codification paragraph 815–20– 
25–43(c)(2), that restricts a covered banking institu-
tion from an option to designate a fair value hedge 
on the risks of changes in the fair value attributable 
to the interest rate risk of a held-to-maturity debt 
security; and 
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‘‘(4) is not subject to any requirement, includ-
ing the Financial Accounting Standards Board’s Ac-
counting Standard Codification paragraph 815–20– 
25–43(d)(2), that restricts a covered banking insti-
tution from an option to designate a cash flow hedge 
to the risks of changes in the cash flows attributable 
to interest rate risk that result from variable cash 
flows of a held-to-maturity debt security. 
‘‘(b) DEFINITIONS.—In this section: 
‘‘(1) COVERED
BANKING
INSTITUTION.—The 
term ‘covered banking institution’ means an insured 
depository institution or depository institution hold-
ing company. 
‘‘(2) INTEREST RATE SWAP.—With respect to a 
covered banking institution, the term ‘interest rate 
swap’ means a swap entered into by the covered 
banking institution for the purpose of hedging 
against the interest rate risk of debt securities or 
loans held on the balance sheet of the covered bank-
ing institution. 
‘‘(3) HEDGE
ACCOUNTING.—The term ‘hedge 
accounting’ means the accounting rules and regula-
tions that enable the financial reporting of hedging 
relationships to better portray the economic results 
of an entity’s risk management activities in its fi-
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nancial statements, including the accounting rules 
and guidance provided by the Financial Accounting 
Standards Board. 
‘‘(4) FAIR VALUE.—The term ‘fair value’ means 
the price that would be received to sell an asset or 
paid to transfer a liability in an orderly transaction 
between market participants at the measurement 
date.’’. 
(b) CLERICAL AMENDMENT.—The table of contents 
in section 1(b) of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act is amended by inserting after 
the item relating to section 754 the following: 
‘‘Sec. 755. Exemptions for certain interest rate swaps of covered banking insti-
tutions.’’. 
Æ 
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