I 
114TH CONGRESS 
2D SESSION 
H. R. 6244 
To require the appropriate Federal banking agencies to treat certain non- 
significant investments in the capital of unconsolidated financial institu-
tions as qualifying capital instruments, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 28, 2016 
Mr. DUFFY (for himself, Mr. THOMPSON of Mississippi, Mr. SENSEN-
BRENNER, Mr. HARPER, and Mr. KELLY of Mississippi) introduced the 
following bill; which was referred to the Committee on Financial Services 
A BILL 
To require the appropriate Federal banking agencies to treat 
certain non-significant investments in the capital of un-
consolidated financial institutions as qualifying capital 
instruments, 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. TREATMENT OF CERTAIN NON-SIGNIFICANT IN-
VESTMENTS IN THE CAPITAL OF UNCONSOLI-
DATED FINANCIAL INSTITUTIONS. 
(a) IN GENERAL.—Section 18 of the Federal Deposit 
Insurance Act (12 U.S.C. 1828) is amended— 
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(1) by moving subsection (z) so that it appears 
after subsection (y); and 
(2) by adding at the end the following: 
‘‘(aa) TREATMENT
OF NON-SIGNIFICANT INVEST-
MENTS IN THE CAPITAL OF UNCONSOLIDATED FINAN-
CIAL INSTITUTIONS.—For purposes of the final rules ti-
tled ‘Regulatory Capital Rules: Regulatory Capital, Imple-
mentation of Basel III, Capital Adequacy, Transition Pro-
visions, Prompt Corrective Action, Standardized Approach 
for Risk-weighted Assets, Market Discipline and Disclo-
sure Requirements, Advanced Approaches Risk-Based 
Capital Rule, and Market Risk Capital Rule’ (78 Fed. 
Reg. 62018; published Oct. 11, 2013 and 79 Fed. Reg. 
20754; published April 14, 2014) (the ‘Final Rules’) and 
any other regulation which incorporates a definition of the 
term ‘non-significant investments in the capital of uncon-
solidated financial institutions’, the appropriate Federal 
banking agencies shall treat non-significant investments in 
the capital of unconsolidated financial institutions as 
qualifying capital instruments (as such terms are defined, 
respectively, in the Final Rules), provided such instru-
ments were held as investments prior to July 21, 2010.’’. 
(b) AMENDMENT TO BASEL III CAPITAL REGULA-
TIONS.—Not later than the end of the 3-month period be-
ginning on the date of the enactment of this Act, the Fed-
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eral Deposit Insurance Corporation, the Board of Gov-
ernors of the Federal Reserve System, and the Comp-
troller of the Currency shall amend the final rules titled 
‘‘Regulatory Capital Rules: Regulatory Capital, Implemen-
tation of Basel III, Capital Adequacy, Transition Provi-
sions, Prompt Corrective Action, Standardized Approach 
for Risk-weighted Assets, Market Discipline and Disclo-
sure Requirements, Advanced Approaches Risk-Based 
Capital Rule, and Market Risk Capital Rule’’ (78 Fed. 
Reg. 62018; published Oct. 11, 2013 and 79 Fed. Reg. 
20754; published April 14, 2014) to implement the 
amendments made by this Act. 
Æ 
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