Volcker Rule Regulatory Harmonization Act

Bill: 115-hr-4790
Sponsor: full_name: Rep. Hill, J. French [R-AR-2]
Introduced: 2018-01-12
Policy area: Finance and Financial Sector
Subjects: Administrative law and regulatory procedures

Bank accounts, deposits, capital

Banking and financial institutions regulation

Federal Reserve System

Financial services and investments

Securities
Latest action: action_date: 2018-04-16
text: Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summaries:
action_date: 2018-01-12
action_desc: Introduced in House
text: <p>This bill amends the Bank Holding Company Act of 1956 to exempt from the Volcker Rule banks with assets of $10 billion or less. (The Volcker Rule prohibits banking agencies from engaging in proprietary trading or entering into certain relationships with hedge funds and private-equity funds.) </p> <p>The bill also grants exclusive rulemaking authority under the Volcker Rule to the Federal Reserve Board. (Currently, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Securities and Exchange Commission, and the Commodity Futures Trading Commission also have regulatory authority under the Volcker Rule.) </p>

action_date: 2018-04-05
action_desc: Reported to House with amendment(s)
text: <p><b>Volcker Rule Regulatory Harmonization Act</b></p> <p>This bill amends the Bank Holding Company Act of 1956 to exempt from the Volcker Rule banks with total assets: (1) of $10 billion or less, and (2) comprised of 5% or less of trading assets and liabilities. (The Volcker Rule prohibits banking agencies from engaging in proprietary trading or entering into certain relationships with hedge funds and private-equity funds.) </p> <p>The bill also grants exclusive rulemaking authority under the Volcker Rule to the Federal Reserve Board. (Currently, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Securities and Exchange Commission, and the Commodity Futures Trading Commission also have regulatory authority under the Volcker Rule.) </p>

action_date: 2018-04-13
action_desc: Passed House amended
text: <p><b>Volcker Rule Regulatory Harmonization Act</b></p> <p>(Sec. 2) This bill amends the Bank Holding Company Act of 1956 to grant exclusive rulemaking authority under the Volcker Rule to the Federal Reserve Board. (Currently, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Securities and Exchange Commission, and the Commodity Futures Trading Commission also have regulatory authority under the Volcker Rule. The Volcker Rule prohibits banking agencies from engaging in proprietary trading or entering into certain relationships with hedge funds and private-equity funds.)</p> <p>(Sec. 4) The bill exempts from the Volcker Rule banks with total assets: (1) of $10 billion or less, and (2) comprised of 5% or less of trading assets and liabilities. </p>

tv_txt: IB Union Calendar No. 474 115th CONGRESS 2d Session H. R. 4790 [Report No. 115–621] IN THE HOUSE OF REPRESENTATIVES January 12, 2018 Mr. Hill introduced the following bill; which was referred to the Committee on Financial Services April 5, 2018 Additional sponsors: Mr. Foster , Mr. Gottheimer , and Mr. Hultgren April 5, 2018 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed Strike out all after the enacting clause and insert the part printed in italic For text of introduced bill, see copy of bill as introduced on January 12, 2018 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. Short title This Act may be cited as the Volcker Rule Regulatory Harmonization Act . 2. Rulemaking authority under the Volcker rule (a) In general Paragraph (2) of section 13(b) of the Bank Holding Company Act of 1956 ( 12 U.S.C. 1851(b)(2) ) is amended to read as follows: (2) Rulemaking (A) In general The Board may, as appropriate, consult with the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Securities and Exchange Commission, or the Commodity Futures Trading Commission to adopt rules or guidance to carry out this section, as provided in subparagraph (B). (B) Rulemaking requirements In adopting a rule or guidance under subparagraph (A), the Board— (i) shall consider the findings of the report required in paragraph (1) and, as appropriate, subsequent reports; (ii) shall assure, to the extent possible, that such rule or guidance provide for consistent application and implementation of the applicable provisions of this section to avoid providing advantages or imposing disadvantages to the companies affected by this subsection and to protect the safety and soundness of banking entities and nonbank financial companies supervised by the Board; and (iii) shall include requirements to ensure compliance with this section, such as requirements regarding internal controls and recordkeeping. (C) Authority The Board shall have sole authority to issue and amend rules under this section after the date of the enactment of this paragraph. (D) Conforming authority (i) Continuity of regulations Any rules or guidance issued under this section prior to the date of enactment of this paragraph shall continue in effect until the Board issues a successor rule or guidance, or amends such rule or guidance, pursuant to subparagraph (C). (ii) Applicable guidance In performing examinations or other supervisory duties, the appropriate Federal banking agencies, the Securities and Exchange Commission, and the Commodity Futures Trading Commission, as appropriate, shall update any applicable policies and procedures to ensure that such policies and procedures are consistent (to the extent practicable) with any rules or guidance issued pursuant to subparagraph (C). . (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’’ each place it appears 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 ; and (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, and inserting Board, . 3. Enforcement; anti-evasion (a) In general Subsection (e) of section 13 of the Bank Holding Company Act of 1956 ( 12 U.S.C. 1851(e) ) is amended to read as follows: (e) Enforcement; anti-evasion (1) Appropriate Federal banking agency Notwithstanding any other provision of law except for any rules or guidance issued under subsection (b)(2), whenever the appropriate Federal banking agency has reasonable cause to believe that a banking entity or nonbank financial company supervised by the Board has made an investment or engaged in an activity in a manner that either violates the restrictions under this section, or that functions as an evasion of the requirements of this section (including through an abuse of any permitted activity), such appropriate Federal banking agency shall order, after due notice and opportunity for hearing, the banking entity or nonbank financial company supervised by the Board to terminate the activity and, as relevant, dispose of the investment. (2) Securities and Exchange Commission and Commodity Futures Trading Commission (A) In general Notwithstanding any other provision of law except for any rules or guidance issued under subsection (b)(2), whenever the Securities and Exchange Commission or the Commodity Futures Trading Commission, as appropriate, has reasonable cause to believe that a covered nonbank financial company for which the respective agency is the primary Federal regulator has made an investment or engaged in an activity in a manner that either violates the restrictions under this section, or that functions as an evasion of the requirements of this section (including through an abuse of any permitted activity), the Securities and Exchange Commission or the Commodity Futures Trading Commission, as appropriate, shall order, after due notice and opportunity for hearing, the covered nonbank financial company to terminate the activity and, as relevant, dispose of the investment. (B) Covered nonbank financial company defined In this paragraph, the term covered nonbank financial company means a nonbank financial company (as defined in section 102 of the Financial Stability Act of 2010) supervised by the Securities and Exchange Commission or the Commodity Futures Trading Commission, as appropriate. . (b) Rule of construction Nothing in this section shall be construed to abrogate, reduce, or eliminate the backup authority of the Federal Deposit Insurance Corporation authority under the Dodd-Frank Wall Street Reform and Consumer Protection Act ( 12 U.S.C. 5301 et seq.), the Federal Deposit Insurance Act ( 12 U.S.C. 1811 ), or Federal Deposit Insurance Corporation Improvement Act of 1991. 4. 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 adjusting the margins accordingly; (2) by redesignating subparagraphs (A), (B), (C), and (D) as clauses (i), (ii), (iii), and (iv), respectively, and adjusting the margins accordingly; (3) in the matter preceding clause (i), as so redesignated, in the second sentence, by striking institution that functions solely in a trust or fiduciary capacity, if— and inserting the following: institution— (A) that functions solely in a trust or fiduciary capacity, if— ; (4) in clause (iv)(II), as so redesignated, by striking the period at the end and inserting ; or ; and (5) by adding at the end the following: (B) that does not have and is not controlled by a company that has— (i) more than $10,000,000,000 in total consolidated assets; and (ii) total trading assets and trading liabilities, as reported on the most recent applicable regulatory filing filed by the institution, that are more than 5 percent of total consolidated assets. .

April 5, 2018 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

tv_txt: 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. .

tv_txt: I 115th CONGRESS 2d Session H. R. 4790 IN THE HOUSE OF REPRESENTATIVES AN ACT 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. Short title This Act may be cited as the Volcker Rule Regulatory Harmonization Act . 2. Rulemaking authority under the Volcker rule (a) In general Paragraph (2) of section 13(b) of the Bank Holding Company Act of 1956 ( 12 U.S.C. 1851(b)(2) ) is amended to read as follows: (2) Rulemaking (A) In general The Board may, as appropriate, consult with the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Securities and Exchange Commission, or the Commodity Futures Trading Commission to adopt rules or guidance to carry out this section, as provided in subparagraph (B). (B) Rulemaking requirements In adopting a rule or guidance under subparagraph (A), the Board— (i) shall consider the findings of the report required in paragraph (1) and, as appropriate, subsequent reports; (ii) shall assure, to the extent possible, that such rule or guidance provide for consistent application and implementation of the applicable provisions of this section to avoid providing advantages or imposing disadvantages to the companies affected by this subsection and to protect the safety and soundness of banking entities and nonbank financial companies supervised by the Board; and (iii) shall include requirements to ensure compliance with this section, such as requirements regarding internal controls and recordkeeping. (C) Authority The Board shall have sole authority to issue and amend rules under this section after the date of the enactment of this paragraph. (D) Conforming authority (i) Continuity of regulations Any rules or guidance issued under this section prior to the date of enactment of this paragraph shall continue in effect until the Board issues a successor rule or guidance, or amends such rule or guidance, pursuant to subparagraph (C). (ii) Applicable guidance In performing examinations or other supervisory duties, the appropriate Federal banking agencies, the Securities and Exchange Commission, and the Commodity Futures Trading Commission, as appropriate, shall update any applicable policies and procedures to ensure that such policies and procedures are consistent (to the extent practicable) with any rules or guidance issued pursuant to subparagraph (C). . (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’’ each place it appears 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 ; and (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, and inserting Board, . 3. Enforcement; anti-evasion (a) In general Subsection (e) of section 13 of the Bank Holding Company Act of 1956 ( 12 U.S.C. 1851(e) ) is amended to read as follows: (e) Enforcement; anti-Evasion (1) Appropriate Federal banking agency Notwithstanding any other provision of law except for any rules or guidance issued under subsection (b)(2), whenever the appropriate Federal banking agency has reasonable cause to believe that a banking entity or nonbank financial company supervised by the Board has made an investment or engaged in an activity in a manner that either violates the restrictions under this section, or that functions as an evasion of the requirements of this section (including through an abuse of any permitted activity), such appropriate Federal banking agency shall order, after due notice and opportunity for hearing, the banking entity or nonbank financial company supervised by the Board to terminate the activity and, as relevant, dispose of the investment. (2) Securities and Exchange Commission and Commodity Futures Trading Commission (A) In general Notwithstanding any other provision of law except for any rules or guidance issued under subsection (b)(2), whenever the Securities and Exchange Commission or the Commodity Futures Trading Commission, as appropriate, has reasonable cause to believe that a covered nonbank financial company for which the respective agency is the primary Federal regulator has made an investment or engaged in an activity in a manner that either violates the restrictions under this section, or that functions as an evasion of the requirements of this section (including through an abuse of any permitted activity), the Securities and Exchange Commission or the Commodity Futures Trading Commission, as appropriate, shall order, after due notice and opportunity for hearing, the covered nonbank financial company to terminate the activity and, as relevant, dispose of the investment. (B) Covered nonbank financial company defined In this paragraph, the term covered nonbank financial company means a nonbank financial company (as defined in section 102 of the Financial Stability Act of 2010) supervised by the Securities and Exchange Commission or the Commodity Futures Trading Commission, as appropriate. . (b) Rule of construction Nothing in this section shall be construed to abrogate, reduce, or eliminate the backup authority of the Federal Deposit Insurance Corporation authority under the Dodd-Frank Wall Street Reform and Consumer Protection Act ( 12 U.S.C. 5301 et seq.), the Federal Deposit Insurance Act ( 12 U.S.C. 1811 ), or Federal Deposit Insurance Corporation Improvement Act of 1991. 4. 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 adjusting the margins accordingly; (2) by redesignating subparagraphs (A), (B), (C), and (D) as clauses (i), (ii), (iii), and (iv), respectively, and adjusting the margins accordingly; (3) in the matter preceding clause (i), as so redesignated, in the second sentence, by striking institution that functions solely in a trust or fiduciary capacity, if— and inserting the following: institution— (A) that functions solely in a trust or fiduciary capacity, if— ; (4) in clause (iv)(II), as so redesignated, by striking the period at the end and inserting ; or ; and (5) by adding at the end the following: (B) that does not have and is not controlled by a company that has— (i) more than $10,000,000,000 in total consolidated assets; and (ii) total trading assets and trading liabilities, as reported on the most recent applicable regulatory filing filed by the institution, that are more than 5 percent of total consolidated assets. .

Passed the House of Representatives April 13, 2018. Karen L. Haas, Clerk.

tv_txt: IIB 115th CONGRESS 2d Session H. R. 4790 IN THE SENATE OF THE UNITED STATES April 16, 2018 Received; read twice and referred to the Committee on Banking, Housing, and Urban Affairs AN ACT 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. Short title This Act may be cited as the Volcker Rule Regulatory Harmonization Act . 2. Rulemaking authority under the Volcker rule (a) In general Paragraph (2) of section 13(b) of the Bank Holding Company Act of 1956 ( 12 U.S.C. 1851(b)(2) ) is amended to read as follows: (2) Rulemaking (A) In general The Board may, as appropriate, consult with the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Securities and Exchange Commission, or the Commodity Futures Trading Commission to adopt rules or guidance to carry out this section, as provided in subparagraph (B). (B) Rulemaking requirements In adopting a rule or guidance under subparagraph (A), the Board— (i) shall consider the findings of the report required in paragraph (1) and, as appropriate, subsequent reports; (ii) shall assure, to the extent possible, that such rule or guidance provide for consistent application and implementation of the applicable provisions of this section to avoid providing advantages or imposing disadvantages to the companies affected by this subsection and to protect the safety and soundness of banking entities and nonbank financial companies supervised by the Board; and (iii) shall include requirements to ensure compliance with this section, such as requirements regarding internal controls and recordkeeping. (C) Authority The Board shall have sole authority to issue and amend rules under this section after the date of the enactment of this paragraph. (D) Conforming authority (i) Continuity of regulations Any rules or guidance issued under this section prior to the date of enactment of this paragraph shall continue in effect until the Board issues a successor rule or guidance, or amends such rule or guidance, pursuant to subparagraph (C). (ii) Applicable guidance In performing examinations or other supervisory duties, the appropriate Federal banking agencies, the Securities and Exchange Commission, and the Commodity Futures Trading Commission, as appropriate, shall update any applicable policies and procedures to ensure that such policies and procedures are consistent (to the extent practicable) with any rules or guidance issued pursuant to subparagraph (C). . (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’’ each place it appears 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 ; and (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, and inserting Board, . 3. Enforcement; anti-evasion (a) In general Subsection (e) of section 13 of the Bank Holding Company Act of 1956 ( 12 U.S.C. 1851(e) ) is amended to read as follows: (e) Enforcement; anti-Evasion (1) Appropriate Federal banking agency Notwithstanding any other provision of law except for any rules or guidance issued under subsection (b)(2), whenever the appropriate Federal banking agency has reasonable cause to believe that a banking entity or nonbank financial company supervised by the Board has made an investment or engaged in an activity in a manner that either violates the restrictions under this section, or that functions as an evasion of the requirements of this section (including through an abuse of any permitted activity), such appropriate Federal banking agency shall order, after due notice and opportunity for hearing, the banking entity or nonbank financial company supervised by the Board to terminate the activity and, as relevant, dispose of the investment. (2) Securities and Exchange Commission and Commodity Futures Trading Commission (A) In general Notwithstanding any other provision of law except for any rules or guidance issued under subsection (b)(2), whenever the Securities and Exchange Commission or the Commodity Futures Trading Commission, as appropriate, has reasonable cause to believe that a covered nonbank financial company for which the respective agency is the primary Federal regulator has made an investment or engaged in an activity in a manner that either violates the restrictions under this section, or that functions as an evasion of the requirements of this section (including through an abuse of any permitted activity), the Securities and Exchange Commission or the Commodity Futures Trading Commission, as appropriate, shall order, after due notice and opportunity for hearing, the covered nonbank financial company to terminate the activity and, as relevant, dispose of the investment. (B) Covered nonbank financial company defined In this paragraph, the term covered nonbank financial company means a nonbank financial company (as defined in section 102 of the Financial Stability Act of 2010) supervised by the Securities and Exchange Commission or the Commodity Futures Trading Commission, as appropriate. . (b) Rule of construction Nothing in this section shall be construed to abrogate, reduce, or eliminate the backup authority of the Federal Deposit Insurance Corporation authority under the Dodd-Frank Wall Street Reform and Consumer Protection Act ( 12 U.S.C. 5301 et seq.), the Federal Deposit Insurance Act ( 12 U.S.C. 1811 ), or Federal Deposit Insurance Corporation Improvement Act of 1991. 4. 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 adjusting the margins accordingly; (2) by redesignating subparagraphs (A), (B), (C), and (D) as clauses (i), (ii), (iii), and (iv), respectively, and adjusting the margins accordingly; (3) in the matter preceding clause (i), as so redesignated, in the second sentence, by striking institution that functions solely in a trust or fiduciary capacity, if— and inserting the following: institution— (A) that functions solely in a trust or fiduciary capacity, if— ; (4) in clause (iv)(II), as so redesignated, by striking the period at the end and inserting ; or ; and (5) by adding at the end the following: (B) that does not have and is not controlled by a company that has— (i) more than $10,000,000,000 in total consolidated assets; and (ii) total trading assets and trading liabilities, as reported on the most recent applicable regulatory filing filed by the institution, that are more than 5 percent of total consolidated assets. .

Passed the House of Representatives April 13, 2018. Karen L. Haas, Clerk.