[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4790 Reported in House (RH)]
<DOC>
Union Calendar No. 474
115th CONGRESS
2d Session
H. R. 4790
[Report No. 115-621]
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.
_______________________________________________________________________
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Volcker Rule Regulatory
Harmonization Act''.
SEC. 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,''.
SEC. 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.
SEC. 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.''.
Union Calendar No. 474
115th CONGRESS
2d Session
H. R. 4790
[Report No. 115-621]
_______________________________________________________________________
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.
_______________________________________________________________________
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