Title: Trust Preferred Securities Act of 2017
Policy area: Finance and Financial Sector

Summary:
Trust Preferred Securities Act of 2017
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.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3838 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 3838

 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 HOUSE OF REPRESENTATIVES

                           September 26, 2017

   Mr. Duffy (for himself, Mr. Kelly of Mississippi, Mr. Thompson of 
Mississippi, Mr. Harper, and Mr. Lucas) 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 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. SHORT TITLE.

    This Act may be cited as the ``Trust Preferred Securities Act of 
2017''.

SEC. 2. TREATMENT OF CERTAIN NON-SIGNIFICANT 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 Non-Significant 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 `non-significant 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 or a depository 
institution holding company 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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