Restoring Proven Financing for American Employers Act

Bill: 113-hr-4167
Sponsor: Rep. Barr, Andy [R-KY-6]
Introduced: 2014-03-06 in the House
Policy area: Finance and Financial Sector
Subjects: Bank accounts, deposits, capital
Banking and financial institutions regulation
Corporate finance and management
Credit and credit markets
Financial services and investments
Securities

Summary:
action_date: 2014-03-06
text: 
Restoring Proven Financing for American Employers Act - Amends the Bank Holding Company Act of 1956 with respect to certain prohibitions on proprietary trading by banking entities and certain relationships with hedge funds and private equity funds (Volcker Rule).
 
Prohibits the Volcker Rule from being construed to require divestiture of any debt securities of collateralized loan obligations issued before January 31, 2014.
 
Declares that a banking entity shall not be considered to have an ownership interest in a collateralized loan obligation because it acquires or retains a debt security in it if the debt security has no indicia of ownership other than the right of the banking entity to participate in the removal for cause, or in the selection of a replacement after removal for cause or resignation, of an investment manager or investment adviser of the collateralized loan obligation.
 
Defines &quot;collateralized loan obligation&quot; as any issuing entity of an asset-backed security comprised primarily of commercial loans.

action_date: 2014-04-29
text: 
Restoring Proven Financing for American Employers Act - Amends the Bank Holding Company Act of 1956 with respect to certain prohibitions on proprietary trading by banking entities and certain relationships with hedge funds and private equity funds (Volcker Rule).
 
Prescribes rules of construction governing a collateralized loan obligation to prohibit the Volcker Rule from being construed to require divestiture, before July 21, 2017, of any debt securities of collateralized loan obligations issued before January 31, 2014.
 
Declares that a banking entity shall not be considered to have an ownership interest in a collateralized loan obligation because it either acquires, has acquired, or retains a debt security in such obligation if the debt security has no indicia of ownership other than the right of the banking entity to participate in the removal for cause, or in the selection of a replacement after removal for cause or resignation, of an investment manager or investment adviser of the collateralized loan obligation.
 
Defines &quot;collateralized loan obligation&quot; as any issuing entity of an asset-backed security comprised primarily of commercial loans.
 
Deems an investment manager or adviser to be removed &quot;for cause&quot; if the removal is a result of:
 
 
 a breach of a material term of the applicable management or advisory agreement or the agreement governing the collateralized loan obligation;
 
the investment manager's or investment adviser's inability to continue to perform its obligations under any such agreement;
 
any other action or inaction by the investment manager or investment adviser that has or could reasonably be expected to have a materially adverse effect on the collateralized loan obligation, if the investment manager or investment adviser fails to cure or take reasonable steps to cure such effect within a reasonable time; or 
 
an event or circumstance which threatens, or could reasonably be expected to threaten, the interests of holders of the debt securities.
 


Legislative actions:
action_date: 2014-04-30
text: Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
action_date: 2014-04-29
text: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H3257)
action_date: 2014-04-29
text: Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.(text: CR H3257)
action_date: 2014-04-29
text: DEBATE - The House proceeded with forty minutes of debate on H.R. 4167.
action_date: 2014-04-29
text: Considered under suspension of the rules. (consideration: CR H3257-3261)
action_date: 2014-04-29
text: Mr. Garrett moved to suspend the rules and pass the bill, as amended.
action_date: 2014-03-14
text: Ordered to be Reported (Amended) by the Yeas and Nays: 53 - 3.
action_date: 2014-03-14
text: Committee Consideration and Mark-up Session Held.
action_date: 2014-03-06
text: Referred to the House Committee on Financial Services.
action_date: 2014-03-06
text: Introduced in House
action_date: 2014-03-06
text: Introduced in House
action_date: 2014-02-26
text: Hearings Held by the Subcommittee on Capital Markets and Government Sponsored Enterprises Prior to Introduction and Referral.