Financial Institution Living Will Improvement Act of 2018

Bill: 115-s-3070
Sponsor: full_name: Sen. Rounds, Mike [R-SD]
Introduced: 2018-06-14
Policy area: Finance and Financial Sector
Subjects: Banking and financial institutions regulation

Financial crises and stabilization

Government information and archives
Latest action: action_date: 2018-06-14
text: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summaries:
action_date: 2018-06-14
action_desc: Introduced in Senate
text: <p><b>Financial Institution Living Will Improvement Act of 2018</b></p> <p>This bill amends the Dodd-Frank Wall Street Reform and Consumer Protection Act to&nbsp;establish the frequency with which&nbsp;certain nonbank financial companies and bank holding companies&nbsp;shall be required&nbsp;to submit a "living will" (i.e., the company's plan for rapid and orderly resolution in the event of financial distress or failure) to the Federal Reserve Board (FRB), the Financial Stability Oversight Council, and the Federal Deposit Insurance Corporation (FDIC). Specifically, such companies shall be required to do so once every two years.&nbsp;(Current regulations generally require annual submission of plans.)</p> <p> The FRB and the FDIC must provide feedback to a&nbsp;company regarding&nbsp;such a&nbsp;plan within six months.</p>

tv_txt: II 115th CONGRESS 2d Session S. 3070 IN THE SENATE OF THE UNITED STATES June 14, 2018 Mr. Rounds (for himself and Mr. Jones ) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To reform the living will process under the Dodd-Frank Wall Street Reform and Consumer Protection Act.

1. Short title This Act may be cited as the Financial Institution Living Will Improvement Act of 2018 . 2. Living will reforms (a) In general Section 165(d) of the Dodd-Frank Wall Street Reform and Consumer Protection Act ( 12 U.S.C. 5365(d) ) is amended— (1) in paragraph (1), by striking periodically and inserting every 2 years ; and (2) in paragraph (3)— (A) by striking The Board and inserting the following: (A) In general The Board ; (B) by striking shall review and inserting the following: shall— (i) review ; (C) by striking the period and inserting ; and ; and (D) by adding at the end the following: (ii) not later than the end of the 6-month period beginning on the date the company submits the resolution plan, provide feedback to the company on such plan. (B) Disclosure of assessment framework The Board of Governors and the Corporation shall publicly disclose the assessment framework that is used to review information under this paragraph. . (b) Treatment of other resolution plan requirements (1) In general With respect to an appropriate Federal banking agency that requires a banking organization to submit to the agency a resolution plan not described under section 165(d) of the Dodd-Frank Wall Street Reform and Consumer Protection Act— (A) the respective agency shall ensure that the review of such resolution plan is consistent with the requirements contained in the amendments made by this Act; (B) the agency may not require the submission of such a resolution plan more often than every 2 years; and (C) paragraphs (6) and (7) of such section 165(d) shall apply to such a resolution plan. (2) Definitions For purposes of this subsection: (A) Appropriate Federal banking agency The term appropriate Federal banking agency — (i) has the meaning given such term under section 3 of the Federal Deposit Insurance Act; and (ii) means the National Credit Union Administration, in the case of an insured credit union. (B) Banking organization The term banking organization means— (i) an insured depository institution; (ii) an insured credit union; (iii) a depository institution holding company; (iv) a company that is treated as a bank holding company for purposes of section 8 of the International Banking Act; and (v) a U.S. intermediate holding company established by a foreign banking organization pursuant to section 252.153 of title 12, Code of Federal Regulations. (C) Insured credit union The term insured credit union has the meaning given that term under section 101 of the Federal Credit Union Act. (D) Other banking terms The terms depository institution holding company and insured depository institution have the meaning given those terms, respectively, under section 3 of the Federal Deposit Insurance Act. (c) Rule of construction Nothing in this Act, or any amendment made by this Act, shall be construed as limiting the authority of an appropriate Federal banking agency (as defined under subsection (b)(2)) to obtain information from an institution in connection with such agency’s authority to examine or require reports from the institution.