Swaps Regulatory Improvement Act

Bill: 113-hr-992
Sponsor: Rep. Hultgren, Randy [R-IL-14]
Introduced: 2013-03-06 in the House
Policy area: Finance and Financial Sector
Subjects: Banking and financial institutions regulation
Financial crises and stabilization
Financial services and investments
Securities

Summary:
action_date: 2013-03-06
text: 
Swaps Regulatory Improvement Act - Amends the Dodd-Frank Wall Street Reform and Consumer Protection Act with respect to the prohibition against certain federal assistance to swaps entities, namely the use of any advances from specified Federal Reserve credit facilities or discount windows, or Federal Deposit Insurance Corporation (FDIC) insurance or guarantees, for the purpose of: (1) making any loan to, or purchasing any stock, equity interest, or debt obligation of, any swaps entity; (2) purchasing the assets of any swaps entity; (3) guaranteeing any loan or debt issuance of any swaps entity; or (4) entering into any assistance arrangement (including tax breaks), loss sharing, or profit sharing with any swaps entity.
 
Extends to any major swap participant or major security-based swap participant that is an uninsured U.S. branch or agency of a foreign bank the exemption from the prohibition against federal assistance to swaps entities which is currently limited to any major swap participant or major security-based swap participant that is an FDIC-insured bank or savings association.
 
Designates both uninsured U.S. branches or agencies of a foreign bank and insured depository institutions as &quot;covered depository institutions.&quot;
 
Requires any covered depository institution exempted from the prohibition to limit its swap and security-based swap activities to hedging and similar risk mitigating activities (as under current law), non-structured finance swap activities, or certain structured finance swap activities. (Defines &quot;structured finance swap&quot; as a swap or security-based swap based on an asset-backed security [or group or index primarily composed of asset-backed securities].)
 
Qualifies a structured finance swap activity for the exemption if: (1) it is undertaken for hedging or risk management purposes, or (2) each asset-backed security underlying the structured finance swap is of a credit quality and of a type or category with respect to which the prudential regulators have jointly adopted rules authorizing such a swap or security-based swap activity by covered depository institutions.
 
Repeals the exemption from the prohibition for any insured depository institution that limits its swap and security-based swap activities to acting as a swaps entity for: (1) swaps or security-based swaps involving rates or reference assets that are permissible for investment by a national bank; or (2) credit default swaps, including those referencing the credit risk of asset-backed securities unless they are cleared by a derivatives clearing organization or a clearing agency registered, or exempt from registration, under the Commodity Exchange Act or the Securities Exchange Act.

action_date: 2013-10-30
text: 

(This measure has not been amended since it was introduced. The summary of that version is repeated here.)

 
Swaps Regulatory Improvement Act - Amends the Dodd-Frank Wall Street Reform and Consumer Protection Act with respect to the prohibition against certain federal assistance to swaps entities, namely the use of any advances from specified Federal Reserve credit facilities or discount windows, or Federal Deposit Insurance Corporation (FDIC) insurance or guarantees, for the purpose of: (1) making any loan to, or purchasing any stock, equity interest, or debt obligation of, any swaps entity; (2) purchasing the assets of any swaps entity; (3) guaranteeing any loan or debt issuance of any swaps entity; or (4) entering into any assistance arrangement (including tax breaks), loss sharing, or profit sharing with any swaps entity.
 
Extends to any major swap participant or major security-based swap participant that is an uninsured U.S. branch or agency of a foreign bank the exemption from the prohibition against federal assistance to swaps entities which is currently limited to any major swap participant or major security-based swap participant that is an FDIC-insured bank or savings association.
 
Designates both uninsured U.S. branches or agencies of a foreign bank and insured depository institutions as &quot;covered depository institutions.&quot;
 
Requires any covered depository institution exempted from the prohibition to limit its swap and security-based swap activities to hedging and similar risk mitigating activities (as under current law), non-structured finance swap activities, or certain structured finance swap activities. (Defines &quot;structured finance swap&quot; as a swap or security-based swap based on an asset-backed security [or group or index primarily composed of asset-backed securities].)
 
Qualifies a structured finance swap activity for the exemption if: (1) it is undertaken for hedging or risk management purposes, or (2) each asset-backed security underlying the structured finance swap is of a credit quality and of a type or category with respect to which the prudential regulators have jointly adopted rules authorizing such a swap or security-based swap activity by covered depository institutions.
 
Repeals the exemption from the prohibition for any insured depository institution that limits its swap and security-based swap activities to acting as a swaps entity for: (1) swaps or security-based swaps involving rates or reference assets that are permissible for investment by a national bank; or (2) credit default swaps, including those referencing the credit risk of asset-backed securities unless they are cleared by a derivatives clearing organization or a clearing agency registered, or exempt from registration, under the Commodity Exchange Act or the Securities Exchange Act.


Legislative actions:
action_date: 2013-10-31
text: Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
action_date: 2013-10-30
text: Motion to reconsider laid on the table Agreed to without objection.
action_date: 2013-10-30
text: On passage Passed by recorded vote: 292 - 122 (Roll no. 569). (text: CR H6916)
action_date: 2013-10-30
text: Passed/agreed to in House: On passage Passed by recorded vote: 292 - 122 (Roll no. 569).(text: CR H6916)
action_date: 2013-10-30
text: On motion to recommit with instructions Failed by the Yeas and Nays: 190 - 223 (Roll no. 568).
action_date: 2013-10-30
text: The previous question on the motion to recommit with instructions was ordered without objection. (consideration: CR H6926)
action_date: 2013-10-30
text: Floor summary: DEBATE - The House proceeded with 10 minutes of debate on the Brownley motion to recommit with instructions. The instructions contained in the motion seek to require the bill to be reported back to the House with an amendment to prohibit any restriction on the ability of financial regulators to ensure that financial institutions comply with laws prohibiting the manipulation of commodity markets, especially with regard to speculation in oil and biofuel contracts.
action_date: 2013-10-30
text: Ms. Brownley (CA) moved to recommit with instructions to Financial Services. (consideration: CR H6925-6927; text: CR H6925)
action_date: 2013-10-30
text: The previous question was ordered pursuant to the rule. (consideration: CR H6925)
action_date: 2013-10-30
text: DEBATE - The House proceeded with one hour of debate on H.R. 992.
action_date: 2013-10-30
text: Considered under the provisions of rule H. Res. 391. (consideration: CR H6916-6928)
action_date: 2013-09-25
text: Placed on the Union Calendar, Calendar No. 169.
action_date: 2013-09-25
text: Reported by the Committee on Agriculture. H. Rept. 113-229, Part II.
action_date: 2013-09-25
text: Reported by the Committee on Agriculture. H. Rept. 113-229, Part II.
action_date: 2013-09-25
text: Reported by the Committee on Financial Services. H. Rept. 113-229, Part I.
action_date: 2013-09-25
text: Reported by the Committee on Financial Services. H. Rept. 113-229, Part I.
action_date: 2013-05-07
text: Ordered to be Reported by the Yeas and Nays: 53 - 6.
action_date: 2013-05-07
text: Committee Consideration and Mark-up Session Held.
action_date: 2013-04-11
text: Hearings Held by the Subcommittee on Capital Markets and Government Sponsored Enterprises Prior to Referral.
action_date: 2013-03-20
text: Ordered to be Reported by the Yeas and Nays: 31 - 14.
action_date: 2013-03-20
text: Committee Consideration and Mark-up Session Held.
action_date: 2013-03-14
text: Committee Hearings Held.
action_date: 2013-03-06
text: Referred to the Committee on Financial Services, and in addition to the Committee on Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2013-03-06
text: Referred to the Committee on Financial Services, and in addition to the Committee on Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2013-03-06
text: Introduced in House
action_date: 2013-03-06
text: Introduced in House