SEC. 112. NON-WAIVER OF PRIVILEGES. 
Part 1 of subtitle A of title XIII of the Housing and 
Community Development Act of 1992 (12 U.S.C. 4511) is 
amended by adding at the end the following new section: 
‘‘SEC. 1319H. PRIVILEGES NOT AFFECTED BY DISCLOSURE. 
‘‘(a) IN GENERAL.—The submission by any person of 
any information to the Agency for any purpose in the 
course of any supervisory or regulatory process of the Agen-
cy shall not be construed as waiving, destroying, or other-
wise affecting any privilege such person may claim with 
respect to such information under Federal or State law as 
to any person or entity other than the Agency. 
‘‘(b) RULE OF CONSTRUCTION.—No provision of sub-
section (a) may be construed as implying or establishing 
that— 
‘‘(1) any person waives any privilege applicable 
to information that is submitted or transferred under 
any circumstance to which subsection (a) does not 
apply; or 
‘‘(2) any person would waive any privilege ap-
plicable to any information by submitting the infor-
mation to the Agency, but for this subsection.’’. 
SEC. 113. RISK-BASED CAPITAL REQUIREMENTS. 
(a) IN GENERAL.—Section 1361 of the Housing and 
Community Development Act of 1992 (12 U.S.C. 4611) is 
amended to read as follows: 
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‘‘SEC. 1361. RISK-BASED CAPITAL LEVELS FOR REGULATED 
ENTITIES. 
‘‘(a) IN GENERAL.— 
‘‘(1) ENTERPRISES.—The Director shall, by reg-
ulation, establish risk-based capital requirements for 
the enterprises to ensure that the enterprises operate 
in a safe and sound manner, maintaining sufficient 
capital and reserves to support the risks that arise in 
the operations and management of the enterprises. 
‘‘(2) FEDERAL HOME LOAN BANKS.—The Direc-
tor shall establish risk-based capital standards under 
section 6 of the Federal Home Loan Bank Act for the 
Federal home loan banks. 
‘‘(b) CONFIDENTIALITY OF INFORMATION.—Any person 
that receives any book, record, or information from the Di-
rector or a regulated entity to enable the risk-based capital 
requirements established under this section to be applied 
shall— 
‘‘(1) maintain the confidentiality of the book, 
record, or information in a manner that is generally 
consistent with the level of confidentiality established 
for the material by the Director or the regulated enti-
ty; and 
‘‘(2) be exempt from section 552 of title 5, 
United States Code, with respect to the book, record, 
or information. 
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‘‘(c) NO LIMITATION.—Nothing in this section shall 
limit the authority of the Director to require other reports 
or undertakings, or take other action, in furtherance of the 
responsibilities of the Director under this Act.’’. 
(b) FEDERAL HOME LOAN BANKS RISK-BASED CAP-
ITAL.—Section 6(a)(3) of the Federal Home Loan Bank Act 
(12 U.S.C. 1426(a)(3)) is amended— 
(1) by striking subparagraph (A) and inserting 
the following new subparagraph: 
‘‘(A) RISK-BASED
CAPITAL
STANDARDS.— 
The Director shall, by regulation, establish risk- 
based capital standards for the Federal home 
loan banks to ensure that the Federal home loan 
banks operate in a safe and sound manner, with 
sufficient permanent capital and reserves to sup-
port the risks that arise in the operations and 
management of the Federal home loans banks.’’; 
and 
(2) in subparagraph (B), by striking ‘‘(A)(ii)’’ 
and inserting ‘‘(A)’’. 
SEC. 114. MINIMUM AND CRITICAL CAPITAL LEVELS. 
(a) MINIMUM CAPITAL LEVEL.—Section 1362 of the 
Housing and Community Development Act of 1992 (12 
U.S.C. 4612) is amended— 
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(1) in subsection (a), by striking ‘‘IN GENERAL’’ 
and inserting ‘‘ENTERPRISES’’; and 
(2) by striking subsection (b) and inserting the 
following new subsections: 
‘‘(b) FEDERAL HOME LOAN BANKS.—For purposes of 
this subtitle, the minimum capital level for each Federal 
home loan bank shall be the minimum capital required to 
be maintained to comply with the leverage requirement for 
the bank established under section 6(a)(2) of the Federal 
Home Loan Bank Act (12 U.S.C. 1426(a)(2)). 
‘‘(c) ESTABLISHMENT OF REVISED MINIMUM CAPITAL 
LEVELS.—Notwithstanding subsections (a) and (b) and 
notwithstanding the capital classifications of the regulated 
entities, the Director may, by regulations issued under sec-
tion 1319G, establish a minimum capital level for the enter-
prises, for the Federal home loan banks, or for both the en-
terprises and the banks, that is higher than the level speci-
fied in subsection (a) for the enterprises or the level specified 
in subsection (b) for the Federal home loan banks, to the 
extent needed to ensure that the regulated entities operate 
in a safe and sound manner. 
‘‘(d) AUTHORITY
TO
REQUIRE
TEMPORARY
IN-
CREASE.—Notwithstanding subsections (a) and (b) and any 
minimum capital level established pursuant to subsection 
(c), the Director may, by order, increase the minimum cap-
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ital level for a regulated entity on a temporary basis for 
such period as the Director may provide if the Director— 
‘‘(1) makes any determination specified in sub-
paragraphs (A) through (C) of section 1364(c)(1); 
‘‘(2) determines that the regulated entity has vio-
lated any of the prudential standards established pur-
suant to section 1313A and, as a result of such viola-
tion, determines that an unsafe and unsound condi-
tion exists; or 
‘‘(3) determines that an unsafe and unsound 
condition exists, except that a temporary increase in 
minimum capital imposed on a regulated entity pur-
suant to this paragraph shall not remain in place for 
a period of more than 6 months unless the Director 
makes a renewed determination of the existence of an 
unsafe and unsound condition. 
‘‘(e) AUTHORITY TO ESTABLISH ADDITIONAL CAPITAL 
AND RESERVE REQUIREMENTS
FOR PARTICULAR PRO-
GRAMS.—The Director may, at any time by order or regula-
tion, establish such capital or reserve requirements with re-
spect to any program or activity of a regulated entity as 
the Director considers appropriate to ensure that the regu-
lated entity operates in a safe and sound manner, with suf-
ficient capital and reserves to support the risks that arise 
in the operations and management of the regulated entity. 
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‘‘(f) PERIODIC REVIEW.—The Director shall periodi-
cally review the amount of core capital maintained by the 
enterprises, the amount of capital retained by the Federal 
home loan banks, and the minimum capital levels estab-
lished for such regulated entities pursuant to this section. 
The Director shall rescind any temporary minimum capital 
level increase if the Director determines that the cir-
cumstances or facts justifying the temporary increase are 
no longer present.’’. 
(b) CRITICAL CAPITAL LEVELS.— 
(1) IN GENERAL.—Section 1363 of the Housing 
and Community Development Act of 1992 (12 U.S.C. 
4613) is amended— 
(A) by striking ‘‘For’’ and inserting ‘‘(a) 
ENTERPRISES.—FOR’’; and 
(B) by adding at the end the following new 
subsection: 
‘‘(b) FEDERAL HOME LOAN BANKS.— 
‘‘(1) IN GENERAL.—For purposes of this subtitle, 
the critical capital level for each Federal home loan 
bank shall be such amount of capital as the Director 
shall, by regulation require. 
‘‘(2) CONSIDERATION OF OTHER CRITICAL CAP-
ITAL
LEVELS.—In establishing the critical capital 
level under paragraph (1) for the Federal home loan 
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