I 115th CONGRESS 2d Session H. R. 4790 IN THE HOUSE OF REPRESENTATIVES January 12, 2018 Mr. Hill introduced the following bill; which was referred to the Committee on Financial Services A BILL To amend the Volcker rule to give the Board of Governors of the Federal Reserve System sole rulemaking authority, to exclude community banks from the requirements of the Volcker rule, and for other purposes.

1. Rulemaking authority under the Volcker rule (a) In general Section 13(b) of the Bank Holding Company Act of 1956 ( 12 U.S.C. 1851(b) ) is amended— (1) in the subsection heading, by striking and Rulemaking and inserting , Rulemaking, Examinations, and Enforcement ; (2) by amending paragraph (2) to read as follows: (2) Rulemaking The Board shall have sole authority to— (A) issue regulations under this section after the date of the enactment of this paragraph; and (B) amend any regulations issued under this section before, on, or after such date. ; and (3) by adding at the end the following new paragraph: (3) Examination and Enforcement Authority (A) Primary Federal banking agency The primary Federal banking agency for a banking entity shall have sole authority to conduct examinations of all affiliates of the banking group to ensure compliance with this section and to enforce the requirements of this section. The primary Federal banking agency shall keep the Board informed of all examinations of and any proposed supervisory or enforcement actions against any affiliate of the banking entity and shall ensure that all actions taken against any affiliate of the banking group are consistent with the Board’s interpretation of this section and rules promulgated thereunder. (B) Definitions For purposes of this paragraph, the term primary Federal banking agency means, with respect to any banking group, the appropriate Federal banking agency for an affiliate within the banking group with the highest amount of unconsolidated assets as of the most recent quarter. . (b) Conforming amendments Section 13 of the Bank Holding Company Act of 1956 ( 12 U.S.C. 1851 ) is amended— (1) by striking the appropriate Federal banking agencies, the Securities and Exchange Commission, and the Commodity Futures Trading Commission, each place it appears and inserting the Board ; (2) by striking appropriate Federal banking agencies, the Securities and Exchange Commission, and the Commodity Futures Trading Commission and inserting Board ; (3) in subsection (c)(5), by striking Notwithstanding paragraph (2) and all that follows through provided in subsection (b)(2), and inserting The Board shall have the authority ; (4) in subsection (d)(1)— (A) in subparagraph (F)(ii)— (i) by striking the appropriate Federal banking agencies and inserting the Board ; and (ii) by striking have not jointly and inserting has not ; and (B) in subparagraph (G)(viii), by striking appropriate Federal banking agencies, the Securities and Exchange Commission, or the Commodity Futures Trading Commission, each place it appears and inserting Board ; and (5) in subsection (e)(2)— (A) by striking an appropriate Federal banking agency, the Securities and Exchange Commission, or the Commodity Futures Trading Commission, as appropriate, and inserting the Board ; and (B) by striking under the respective agency’s jurisdiction . 2. Exclusion of community banks from Volcker rule Section 13(h)(1) of the Bank Holding Company Act of 1956 ( 12 U.S.C. 1851(h)(1) ) is amended— (1) in subparagraph (D), by redesignating clauses (i) and (ii) as subclauses (I) and (II), respectively, and moving such subclauses 2 ems to the right; (2) by redesignating subparagraphs (A), (B), (C), and (D) as clauses (i), (ii), (iii), and (iv), respectively, and moving such clauses 2 ems to the right; (3) by striking The term and inserting the following: (A) In general The term ; and (4) by adding at the end the following: (B) Exclusion Notwithstanding subparagraph (A), the term banking entity does not include any entity that has total consolidated assets of $10,000,000,000 or less. .