I 
111TH CONGRESS 
2D SESSION 
H. R. 5159 
To provide for a safe, accountable, fair, and efficient banking system, and 
for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 28, 2010 
Mr. MILLER of North Carolina (for himself, Mr. CHANDLER, Mr. COHEN, Mr. 
ELLISON, and Mr. SHERMAN) introduced the following bill; which was re-
ferred to the Committee on Financial Services 
A BILL 
To provide for a safe, accountable, fair, and efficient banking 
system, 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 ‘‘Safe, Accountable, 
Fair, and Efficient Banking Act of 2010’’ or the ‘‘SAFE 
Banking Act of 2010’’. 
SEC. 2. DEFINITIONS. 
(a) IN GENERAL.—As used in this Act, the following 
definitions shall apply: 
VerDate Mar 15 2010 
01:17 Apr 29, 2010
Jkt 089200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H5159.IH
H5159
tjames on DSKG8SOYB1PROD with BILLS
(1) APPROPRIATE FEDERAL REGULATOR.—The 
term ‘‘appropriate Federal regulator’’ means— 
(A) the Board of Governors of the Federal 
Reserve System (in this Act referred to as the 
‘‘Board’’); 
(B) the Comptroller General of the United 
States (in this Act referred to as the ‘‘Comp-
troller’’); or 
(C) the Federal Deposit Insurance Cor-
poration (in this Act referred to as the ‘‘Cor-
poration’’). 
(2) AVERAGE TOTAL CONSOLIDATED ASSETS.— 
the term ‘‘average total consolidated assets’’ has the 
same meaning as in part 225 of title 12, Code of 
Federal Regulations, as in effect on the date of en-
actment of this Act, or any successor thereto. 
(3) FDIC-ASSESSED
DEPOSITS.—The term 
‘‘FDIC-assessed deposits’’ means the assessment 
base, as computed under part 327 of title 12, Code 
of Federal Regulations, as in effect on the date of 
enactment of this Act, or any successor thereto. 
(4) FINANCIAL COMPANY.—The term ‘‘financial 
company’’ means any nonbank financial company 
that is supervised by the Board. 
VerDate Mar 15 2010 
01:17 Apr 29, 2010
Jkt 089200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H5159.IH
H5159
tjames on DSKG8SOYB1PROD with BILLS
(5) LIABILITIES.—The term ‘‘liabilities’’ equals 
a financial company’s total assets less tier 1 capital. 
(6) 
NONDEPOSIT
LIABILITIES.—The 
term 
‘‘nondeposit liabilities’’ means the total assets of a 
bank holding company, less tier 1 capital, less 
FDIC-assessed deposits. 
(7) TIER 1 CAPITAL.—The term ‘‘tier 1 capital’’ 
has the same meaning as in part 225 of title 12, 
Code of Federal Regulations, as in effect on the date 
of enactment of this Act, or any successor thereto. 
(b) NONBANK FINANCIAL COMPANY DEFINITIONS.— 
For purposes of this Act the following definitions shall 
apply: 
(1) FOREIGN NONBANK FINANCIAL COMPANY.— 
The term ‘‘foreign nonbank financial company’’ 
means a company (other than a company that is, or 
is treated in the United States, as a bank holding 
company or a subsidiary thereof) that is— 
(A) incorporated or organized in a country 
other than the United States; and 
(B) substantially engaged in, including 
through a branch in the United States, activi-
ties in the United States that are financial in 
nature (as defined in section 4(k) of the Bank 
Holding Company Act of 1956). 
VerDate Mar 15 2010 
01:17 Apr 29, 2010
Jkt 089200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H5159.IH
H5159
tjames on DSKG8SOYB1PROD with BILLS
(2) U.S. NONBANK FINANCIAL COMPANY.—The 
term ‘‘U.S. nonbank financial company’’ means a 
company (other than a bank holding company or a 
subsidiary thereof) that is— 
(A) incorporated or organized under the 
laws of the United States or any State; and 
(B) substantially engaged in activities in 
the United States that are financial in nature 
(as defined in section 4(k) of the Bank Holding 
Company Act of 1956). 
(3) NONBANK FINANCIAL COMPANY.—The term 
‘‘nonbank 
financial 
company’’ 
means 
a 
U.S. 
nonbank financial company and a foreign nonbank 
financial company. 
SEC. 3. DEPOSIT CONCENTRATION LIMIT. 
Section 3(d) of the Bank Holding Company Act of 
1956 (12 U.S.C. 1842(d)) is amended— 
(1) in paragraph (2), by striking subparagraph 
(A) and inserting the following: 
‘‘(A) NATIONWIDE
CONCENTRATION
LIM-
ITS.—No bank holding company may hold more 
than 10 percent of the total amount of deposits 
of insured depository institutions in the United 
States.’’; and 
VerDate Mar 15 2010 
01:17 Apr 29, 2010
Jkt 089200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H5159.IH
H5159
tjames on DSKG8SOYB1PROD with BILLS
(2) by striking paragraph (5) and inserting the 
following: 
‘‘(5) ENFORCED
COMPLIANCE.—The Board 
shall require any bank holding company having a de-
posit concentration in violation of this subsection to 
sell or otherwise transfer assets to unaffiliated firms 
to bring the company into compliance with this sub-
section.’’. 
SEC. 4. LEVERAGE RATIO AND SIZE REQUIREMENTS FOR 
BANK HOLDING COMPANIES. 
The Bank Holding Company Act of 1956 (12 U.S.C. 
1841 et seq.) is amended by inserting after section 5 the 
following new section: 
‘‘SEC. 5A. LIMITS ON LEVERAGE AND SIZE. 
‘‘(a) LEVERAGE RATIO REQUIREMENTS FOR BANK 
HOLDING COMPANIES AND FINANCIAL COMPANIES.— 
‘‘(1) LEVERAGE RATIO.—No bank holding com-
pany or financial company may maintain tier 1 cap-
ital in an amount equal to less than 6 percent of av-
erage total consolidated assets. 
‘‘(2) BALANCE SHEET LEVERAGE RATIO.—No 
bank holding company or financial company may 
maintain less than 6 percent of tier 1 capital for all 
outstanding balance sheet liabilities, as determined 
VerDate Mar 15 2010 
01:17 Apr 29, 2010
Jkt 089200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H5159.IH
H5159
tjames on DSKG8SOYB1PROD with BILLS
under section 13(m) of the Securities Exchange Act 
of 1934 (15 U.S.C. 78m(m)). 
‘‘(3) EXEMPTIONS.— 
‘‘(A) IN GENERAL.—The Board may ad-
just the leverage ratio requirements provided in 
paragraph (1) or (2), for any class of institu-
tions, based upon the size or activity of such 
class of institutions. No adjustment made under 
this subparagraph may allow an institution to 
carry less capital than provided in paragraph 
(1) or (2). 
‘‘(B) ADJUSTMENTS.—Consistent with this 
subsection, the Board may adjust, by rule, the 
definitions of the terms ‘leverage ratio’ and 
‘balance sheet leverage ratio’ to harmonize such 
ratios with official international agreements re-
garding capital standards, only if the Board de-
termines that the international capital stand-
ards are commensurate with the credit, market, 
operational, or other risks posed by the bank 
holding companies or financial companies to 
which the international agreements regarding 
capital standards apply. 
‘‘(C) 
AUTHORITY
OF
OTHER
REGU-
LATORS.— 
VerDate Mar 15 2010 
01:17 Apr 29, 2010
Jkt 089200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H5159.IH
H5159
tjames on DSKG8SOYB1PROD with BILLS
‘‘(i) IN
GENERAL.—The appropriate 
Federal regulator may, in a manner con-
sistent with this subsection, grant any 
bank holding company an emergency tem-
porary exemption from the ratio require-
ments provided in paragraph (1) or (2), 
where necessary to prevent an imminent 
threat to the financial stability of the 
United States. 
‘‘(ii) PUBLICATION
REQUIRED.—Any 
exemption granted under this subpara-
graph shall be published in the Federal 
Register within a reasonable period after 
the date on which such exemption is grant-
ed, not to exceed 90 days, and such publi-
cation shall provide— 
‘‘(I) the name of the bank hold-
ing company or financial company 
being granted an exemption; 
‘‘(II) the reason for the exemp-
tion; and 
‘‘(III) the plan of the appropriate 
Federal regulator detailing the man-
ner by which the bank holding com-
VerDate Mar 15 2010 
01:17 Apr 29, 2010
Jkt 089200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H5159.IH
H5159
tjames on DSKG8SOYB1PROD with BILLS
pany shall be brought into compliance 
with paragraphs (1) and (2). 
‘‘(4) LEVERAGE RATIO REQUIREMENTS FOR OP-
ERATING SUBSIDIARIES OF BANK HOLDING COMPA-
NIES AND FINANCIAL COMPANIES.—Notwithstanding 
any other provision of law applicable to insured de-
pository institutions, the Board shall, within 1 year 
of the date of enactment of the SAFE Banking Act 
of 2010, promulgate regulations establishing a lever-
age ratio and a balance sheet leverage ratio, in a 
manner consistent with paragraphs (1) and (2), for 
all operating subsidiaries of bank holding companies 
and financial companies. 
‘‘(5) PROMPT CORRECTIVE ACTION.— 
‘‘(A) AUTHORITIES.—The Board shall re-
quire any bank holding company or financial 
company that is in violation of paragraph (1) or 
(2) to raise capital, sell or otherwise transfer 
assets or off-balance sheet items to unaffiliated 
firms, or impose conditions on the manner in 
which the bank holding company conducts 1 or 
more activities to bring the company into com-
pliance with paragraphs (1) and (2). 
‘‘(B) CORRECTIVE
ACTION
PLAN.—The 
Board shall, not later than 60 days after deter-
VerDate Mar 15 2010 
01:17 Apr 29, 2010
Jkt 089200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H5159.IH
H5159
tjames on DSKG8SOYB1PROD with BILLS
mining that a bank holding company or finan-
cial company is in violation of paragraph (1) or 
(2), present to the members of the Committee 
on Banking, Housing, and Urban Affairs of the 
Senate and the Committee on Financial Serv-
ices of the House of Representatives a plan de-
tailing the manner by which the bank holding 
company or financial company shall be brought 
into compliance with the applicable provision of 
law. 
‘‘(C) REPORTS TO THE CONGRESS.— 
‘‘(i) WRITTEN REPORTS.—The Board 
shall provide to the members of the Com-
mittee on Banking, Housing, and Urban 
Affairs of the Senate and the Committee 
on Financial Services of the House of Rep-
resentatives periodic reports for each 60- 
day period during which a corrective action 
plan required by subparagraph (B) has not 
been fulfilled. 
‘‘(ii) TESTIMONY.—The Board shall 
provide testimony to the Committee on 
Banking, Housing, and Urban Affairs of 
the Senate and the Committee on Finan-
cial Services of the House of Representa-
VerDate Mar 15 2010 
01:17 Apr 29, 2010
Jkt 089200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H5159.IH
H5159
tjames on DSKG8SOYB1PROD with BILLS
tives for each 90-day period that a correc-
tive action plan required by subparagraph 
(B) has not been fulfilled. 
‘‘(b) LIMITS
ON
NONDEPOSIT
LIABILITIES
FOR 
BANK HOLDING COMPANIES
AND FINANCIAL COMPA-
NIES.— 
‘‘(1) BANK HOLDING COMPANIES.— 
‘‘(A) LIMIT ON NONDEPOSIT LIABILITIES 
FOR
BANK
HOLDING
COMPANIES.—No bank 
holding company may possess nondeposit liabil-
ities exceeding 2 percent of the annual gross 
domestic product of the United States. 
‘‘(B) DETERMINATION OF GROSS DOMES-
TIC
PRODUCT.—The annual gross domestic 
product of the United States shall be deter-
mined for purposes of subparagraph (A) using 
the average of such product over the 16 cal-
endar quarters, as calculated by the Bureau of 
Economic Analysis of the Department of Com-
merce, most recently completed as of the time 
of the determination. 
‘‘(C) OFF-BALANCE-SHEET LIABILITIES.— 
The computation of the limit under this para-
graph shall take into account off-balance-sheet 
liabilities. 
VerDate Mar 15 2010 
01:17 Apr 29, 2010
Jkt 089200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H5159.IH
H5159
tjames on DSKG8SOYB1PROD with BILLS
‘‘(D) TREATMENT OF INSURANCE COMPA-
NIES.—Notwithstanding the liability limit es-
tablished in this section, the Board may set a 
separate liability limit with respect to certain 
bank holding companies primarily engaged in 
the business of insurance, as the Board deems 
necessary in order to provide for consistent and 
equitable treatment of such institutions. In es-
tablishing such separate liability limits for in-
surance companies, for any insurance company 
with any subsidiary regulated by a State insur-
ance regulator, the Board shall consult the ap-
propriate State insurance regulator. 
‘‘(E) TREATMENT
OF
FOREIGN
DEPOS-
ITS.—Notwithstanding the definition of the 
term ‘nondeposit liabilities’ established in this 
section, the Board may exclude from its calcula-
tion of nondeposit liabilities any foreign and 
other deposits not covered by the definition of 
the term ‘FDIC-assessed deposits’, if the Board 
deems such action necessary to ensure the con-
sistent and equitable treatment of institutions 
with international operations. 
‘‘(2) FINANCIAL COMPANIES.— 
VerDate Mar 15 2010 
01:17 Apr 29, 2010
Jkt 089200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H5159.IH
H5159
tjames on DSKG8SOYB1PROD with BILLS
‘‘(A) LIMIT ON NONDEPOSIT LIABILITIES 
FOR
FINANCIAL
COMPANIES.—No 
financial 
company may possess nondeposit liabilities ex-
ceeding 3 percent of the annual gross domestic 
product of the United States. 
‘‘(B) DETERMINATION OF GROSS DOMES-
TIC
PRODUCT.—The annual gross domestic 
product of the United States shall be deter-
mined for purposes of subparagraph (A) using 
the average of such product over the 16 cal-
endar quarters, as calculated by the Bureau of 
Economic Analysis of the Department of Com-
merce, most recently completed as of the time 
of the determination. 
‘‘(C) OFF-BALANCE-SHEET LIABILITIES.— 
The computation of the limit under this para-
graph shall take into account off-balance-sheet 
liabilities. 
‘‘(D) TREATMENT OF INSURANCE COMPA-
NIES.—Notwithstanding the liability limit es-
tablished by this paragraph, the Board may set 
a separate liability limit with respect to insur-
ance companies or other financial companies, as 
the Board determines necessary in order to pro-
vide for consistent and equitable treatment of 
VerDate Mar 15 2010 
01:17 Apr 29, 2010
Jkt 089200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H5159.IH
H5159
tjames on DSKG8SOYB1PROD with BILLS
such institutions. In establishing such separate 
liability limits for insurance companies, for any 
insurance company with any subsidiary regu-
lated by a State insurance regulator, the Board 
shall consult with the appropriate State insur-
ance regulator. 
‘‘(E) TREATMENT
OF
FOREIGN
DEPOS-
ITS.—Notwithstanding the definition of the 
term ‘nondeposit liabilities’ established in this 
section, the Board may exclude from its calcula-
tion of nondeposit liabilities any foreign and 
other deposits not covered by the definition of 
the term ‘FDIC-assessed deposits’, if the Board 
deems such action necessary to ensure the con-
sistent and equitable treatment of institutions 
with international operations. 
‘‘(3) PROMPT CORRECTIVE ACTION.— 
‘‘(A) AUTHORITIES.—The Board shall re-
quire any bank holding company or financial 
company that is in violation of a provision of 
paragraph (1) or (2), as applicable, to sell or 
otherwise transfer assets or off-balance-sheet 
items to unaffiliated firms, to terminate 1 or 
more activities, or to impose conditions on the 
manner in which the bank holding company or 
VerDate Mar 15 2010 
01:17 Apr 29, 2010
Jkt 089200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H5159.IH
H5159
tjames on DSKG8SOYB1PROD with BILLS
financial company conducts 1 or more activities 
to bring the company into compliance with 
paragraphs (1) or (2), as applicable. 
‘‘(B) CORRECTIVE
ACTION
PLAN.—The 
Board shall, not later than 60 days after deter-
mining that a bank holding company or finan-
cial company is in violation of paragraph (1) or 
(2), present to the members of the Committee 
on Banking, Housing, and Urban Affairs of the 
Senate and the Committee on Financial Serv-
ices of the House of Representatives a plan de-
tailing the manner by which the bank holding 
company or financial company shall be brought 
into compliance with the applicable provision. 
‘‘(C) REPORTS TO THE CONGRESS.— 
‘‘(i) WRITTEN REPORTS.—The Board 
shall provide to the members of the Com-
mittee on Banking, Housing, and Urban 
Affairs of the Senate and the Committee 
on Financial Services of the House of Rep-
resentatives periodic reports for each 60- 
day period during which a corrective action 
plan required by subparagraph (B) has not 
been fulfilled. 
VerDate Mar 15 2010 
01:17 Apr 29, 2010
Jkt 089200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H5159.IH
H5159
tjames on DSKG8SOYB1PROD with BILLS
‘‘(ii) TESTIMONY.—The Board shall 
provide testimony to the Committee on 
Banking, Housing, and Urban Affairs of 
the Senate and the Committee on Finan-
cial Services of the House of Representa-
tives for each 120-day period during which 
a corrective action plan required by sub-
paragraph (B) has not been fulfilled. 
‘‘(c) DEFINITIONS.—As used in this section, the fol-
lowing definitions shall apply: 
‘‘(1) APPROPRIATE
FEDERAL
REGULATOR.— 
The term ‘appropriate Federal regulator’ means— 
‘‘(A) the Board of Governors of the Fed-
eral Reserve System (in this Act referred to as 
the ‘Board’); 
‘‘(B) the Comptroller General of the 
United States (in this Act referred to as the 
‘Comptroller’); or 
‘‘(C) the Federal Deposit Insurance Cor-
poration (in this Act referred to as the ‘Cor-
poration’). 
‘‘(2) AVERAGE
TOTAL
CONSOLIDATED
AS-
SETS.—The term ‘average total consolidated assets’ 
has the same meaning as in part 225 of title 12, 
VerDate Mar 15 2010 
01:17 Apr 29, 2010
Jkt 089200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H5159.IH
H5159
tjames on DSKG8SOYB1PROD with BILLS
Code of Federal Regulations, as in effect on the date 
of enactment of this Act, or any successor thereto. 
‘‘(3) FDIC-ASSESSED
DEPOSITS.—The term 
‘FDIC-assessed deposits’ means the assessment 
base, as computed under part 327 of title 12, Code 
of Federal Regulations, as in effect on the date of 
enactment of this Act, or any successor thereto. 
‘‘(4) FINANCIAL COMPANY.—The term ‘finan-
cial company’ means any nonbank financial company 
that is supervised by the Board. 
‘‘(5) LIABILITIES.—The term ‘liabilities’ equals 
a financial company’s total assets less tier 1 capital. 
‘‘(6) NONDEPOSIT
LIABILITIES.—The term 
‘nondeposit liabilities’ means the total assets of a 
bank holding company, less tier 1 capital, less 
FDIC-assessed deposits. 
‘‘(7) FOREIGN
NONBANK
FINANCIAL
COM-
PANY.—The term ‘foreign nonbank financial com-
pany’ means a company (other than a company that 
is, or is treated in the United States, as a bank 
holding company or a subsidiary thereof) that is— 
‘‘(A) incorporated or organized in a coun-
try other than the United States; and 
‘‘(B) substantially engaged in, including 
through a branch in the United States, activi-
VerDate Mar 15 2010 
01:17 Apr 29, 2010
Jkt 089200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H5159.IH
H5159
tjames on DSKG8SOYB1PROD with BILLS
ties in the United States that are financial in 
nature (as defined in section 4(k) of the Bank 
Holding Company Act of 1956). 
‘‘(8) U.S. NONBANK
FINANCIAL
COMPANY.— 
The term ‘U.S. nonbank financial company’ means 
a company (other than a bank holding company or 
a subsidiary thereof) that is— 
‘‘(A) incorporated or organized under the 
laws of the United States or any State; and 
‘‘(B) substantially engaged in activities in 
the United States that are financial in nature 
(as defined in section 4(k) of the Bank Holding 
Company Act of 1956). 
‘‘(9) NONBANK
FINANCIAL
COMPANY.—The 
term ‘nonbank financial company’ means a U.S. 
nonbank financial company and a foreign nonbank 
financial company. 
‘‘(10) TIER 1 CAPITAL.—The term ‘tier 1 cap-
ital’ has the same meaning as in part 225 of title 
12, Code of Federal Regulations, as in effect on the 
date of enactment of this section, or any successor 
thereto.’’. 
VerDate Mar 15 2010 
02:47 Apr 29, 2010
Jkt 089200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H5159.IH
H5159
tjames on DSKG8SOYB1PROD with BILLS
SEC. 5. CAPITAL ASSESSMENT PROGRAM. 
The Bank Holding Company Act of 1956 (12 U.S.C. 
1841 et seq.) is amended by inserting after section 7 the 
following new section: 
‘‘SEC. 7A. CAPITAL ASSESSMENT PROGRAM. 
‘‘(a) ANNUAL ASSESSMENTS.—Beginning 1 year 
after the date of enactment of the SAFE Banking Act 
of 2010, and annually thereafter, the Board shall conduct 
a capital assessment to estimate losses, revenues, and re-
serve needs for bank holding companies and financial com-
panies. 
‘‘(b) REPORTS.—The Board shall provide a report on 
the results of the capital assessment program under this 
section to the Secretary, the members of the Committee 
on Banking, Housing, and Urban Affairs of the Senate, 
and the members of the Committee on Financial Services 
of the House of Representatives.’’. 
SEC. 6. AMENDMENT TO THE SECURITIES AND EXCHANGE 
ACT. 
Section 13 of the Securities Exchange Act of 1934 
(15 U.S.C. 78m) is amended by adding at the end the 
following new subsection: 
‘‘(m) STANDARD BALANCE SHEET CALCULATION 
FOR REPORTS.— 
‘‘(1) ESTABLISHMENT OF STANDARD BALANCE 
SHEET REPORTING.—Not later than 1 year after the 
VerDate Mar 15 2010 
01:17 Apr 29, 2010
Jkt 089200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H5159.IH
H5159
tjames on DSKG8SOYB1PROD with BILLS
date of enactment of the SAFE Banking Act of 
2010, the Commission, or a standard setter des-
ignated by and under the oversight of the Commis-
sion, shall issue a rule requiring that each issuer of 
securities required to file reports under this section 
record all of its assets and liabilities on its balance 
sheets. The recorded amount of assets and liabilities 
shall reflect a reasonable assessment by the issuer of 
the most likely outcomes, given currently available 
information. Such issuers shall record all financings 
of assets for which the issuer has more than minimal 
economic risks or rewards. 
‘‘(2) EXCLUSION FOR INDETERMINATE LIABIL-
ITIES.—If an issuer required to file reports under 
this section cannot determine the amount of a par-
ticular liability, for purposes of paragraph (1), such 
issuer may exclude that liability from its balance 
sheet only if it discloses an explanation of— 
‘‘(A) the nature of the liability and pur-
pose for incurring it; 
‘‘(B) the most likely and maximum loss 
that the issuer could incur from the liability; 
‘‘(C) whether there is any recourse to the 
issuer by another party and, if so, under what 
conditions such recourse could occur; and 
VerDate Mar 15 2010 
01:17 Apr 29, 2010
Jkt 089200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H5159.IH
H5159
tjames on DSKG8SOYB1PROD with BILLS
‘‘(D) whether the issuer has any con-
tinuing involvement with an asset financed by 
the liability or any beneficial interest therein. 
‘‘(3) RULEMAKING.—The Commission shall 
promulgate rules to ensure compliance with this sub-
section, including enforcement by the Commission 
and civil liability under the Securities Act of 1933 
and this title.’’. 
SEC. 7. EFFECTIVE DATE. 
(a) IN GENERAL.—This Act and the amendments 
made by this Act shall take effect upon the date of enact-
ment of this Act. 
(b) ALLOWANCE FOR BANK HOLDING COMPANIES 
AND FINANCIAL COMPANIES NOT IN COMPLIANCE AT 
DATE OF ENACTMENT.—Any institution that is in viola-
tion of— 
(1) the deposit concentration limit in section 
3(d)(2)(A) of the Bank Holding Act of 1956, as 
amended by this Act, as of the date of enactment of 
this Act, shall bring itself into compliance with that 
limit not later than 1 year after the date of enact-
ment of this Act; 
(2) the leverage ratios in section 5A of the 
Bank Holding Act of 1956, as amended by this Act, 
as of the date of enactment of this Act, shall bring 
VerDate Mar 15 2010 
01:17 Apr 29, 2010
Jkt 089200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6201
E:\BILLS\H5159.IH
H5159
tjames on DSKG8SOYB1PROD with BILLS
itself into compliance with those ratios, not later 
than 1 year after the date of enactment of this Act; 
and 
(3) the limits on nondeposit liabilities in section 
7A of the Bank Holding Company Act of 1956, as 
added by this Act, as of the date of enactment of 
this Act, shall bring itself into compliance with those 
limits, not later than 3 years after the date of enact-
ment of this Act. 
Æ 
VerDate Mar 15 2010 
01:17 Apr 29, 2010
Jkt 089200
PO 00000
Frm 00021
Fmt 6652
Sfmt 6301
E:\BILLS\H5159.IH
H5159
tjames on DSKG8SOYB1PROD with BILLS