Title: A bill to require the appropriate Federal banking agencies to treat certain non-significant investments in the capital of unconsolidated financial institutions as qualifying capital instruments, and for other purposes.
Policy area: Finance and Financial Sector

Summary:
This bill requires federal banking agencies to treat as qualifying capital instruments certain investments in the capital of unconsolidated financial institutions. Specifically, the bill applies to investments in trust-preferred securities held prior to July 21, 2010, by a depository institution or holding company with assets of less than $15 billion.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 1647 Introduced in Senate (IS)]

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115th CONGRESS
  1st Session
                                S. 1647

 To require the appropriate Federal banking agencies to treat certain 
non-significant investments in the capital of unconsolidated financial 
institutions as qualifying capital instruments, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 27, 2017

 Mr. Wicker (for himself, Ms. Duckworth, Mr. Cochran, and Ms. Baldwin) 
introduced the following bill; which was read twice and referred to the 
            Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
 To require the appropriate Federal banking agencies to treat certain 
non-significant investments in the capital of unconsolidated financial 
institutions as qualifying capital instruments, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. TREATMENT OF CERTAIN NONSIGNIFICANT INVESTMENTS IN THE 
              CAPITAL OF UNCONSOLIDATED FINANCIAL INSTITUTIONS.

    (a) In General.--Section 18 of the Federal Deposit Insurance Act 
(12 U.S.C. 1828) is amended--
            (1) by moving subsection (z) so that it appears after 
        subsection (y); and
            (2) by adding at the end the following:
    ``(aa) Treatment of Nonsignificant Investments in the Capital of 
Unconsolidated Financial Institutions.--For purposes of the final rules 
titled `Regulatory Capital Rules: Regulatory Capital, Implementation of 
Basel III, Capital Adequacy, Transition Provisions, Prompt Corrective 
Action, Standardized Approach for Risk-weighted Assets, Market 
Discipline and Disclosure 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) and any other regulation which incorporates a definition of the 
term `nonsignificant investments in the capital of unconsolidated 
financial institutions', the appropriate Federal banking agencies shall 
provide that investments in trust preferred securities (pooled and 
individual instruments) by a depository institution with assets of less 
than $15,000,000,000 as of July 21, 2010, or a depository institution 
holding company with assets of less than $15,000,000,000 as of July 21, 
2010, shall not be subject to deduction from the regulatory capital of 
such depository institution or depository institution holding company 
or any depository institution holding company of such an institution, 
provided such investments were held prior to July 21, 2010.''.
    (b) Amendment to Basel III 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 Comptroller of the 
Currency shall amend the final rules titled ``Regulatory Capital Rules: 
Regulatory Capital, Implementation of Basel III, Capital Adequacy, 
Transition Provisions, Prompt Corrective Action, Standardized Approach 
for Risk-weighted Assets, Market Discipline and Disclosure 
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.
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