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.

Bill: 114-s-3500
Sponsor: full_name: Sen. Wicker, Roger F. [R-MS]
Introduced: 2016-12-05
Policy area: Finance and Financial Sector
Subjects: Administrative law and regulatory procedures

Bank accounts, deposits, capital

Banking and financial institutions regulation

Department of the Treasury

Federal Deposit Insurance Corporation (FDIC)

Federal Reserve System

Financial services and investments

Securities
Latest action: action_date: 2016-12-05
text: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summaries:
action_date: 2016-12-05
action_desc: Introduced in Senate
text: <p>This bill amends the Federal Deposit Insurance Act to require the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), and the Federal Reserve Board to provide that a bank's or a savings association's investments in Trust Preferred Securities (pooled and individual instruments) shall not be subject to deduction from such institution's regulatory capital (provided such instruments were held as investments prior to July 21, 2010) for purposes of the final rules entitled &quot;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&quot; (Basel III Capital Regulations), published on October 11, 2013.</p> <p>The OCC, the FDIC, and the Federal Reserve Board must amend such Basel III Capital Regulations to implement this bill.</p>

tv_txt: II 114th CONGRESS 2d Session S. 3500 IN THE SENATE OF THE UNITED STATES December 5, 2016 Mr. Wicker (for himself and Mr. Cochran ) 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.

1. 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) (the Final Rules ) 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 a bank’s or a savings association’s investments in Trust Preferred Securities (pooled and individual instruments) shall not be subject to deduction from such institution’s regulatory capital, provided such instruments were held as investments 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.