H.R. 1838 (112th): Swaps Bailout Prevention Act

Introduced:
May 11, 2011 (112th Congress, 2011–2013)
Sponsor:
Rep. Nan Hayworth [R-NY19]
Status:
Died (Reported by Committee)

The bill’s title was written by the bill’s sponsor. H.R. stands for House of Representatives bill.

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Status

This bill was introduced on February 16, 2012, in a previous session of Congress, but was not enacted.

Progress
Introduced May 11, 2011
Referred to Committee May 11, 2011
Reported by Committee May 11, 2011
Referred to Committee Jul 19, 2011
Reported by Committee Feb 16, 2012
Cosponsors
none
Committees

House Agriculture

House Financial Services

The committee chair determines whether a bill will move past the committee stage.

Full Title

To repeal a provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act prohibiting any Federal bailout of swap dealers or participants.

Summary

No summaries available.

Text

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Last updated Sep 14, 2012.
8 pages

Primary Source

View on THOMAS (The Library of Congress)

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GovTrack’s Bill Summary

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Library of Congress Summary

The summary below was written by the Congressional Research Service, which is a nonpartisan division of the Library of Congress.

5/11/2012. Amends the Dodd-Frank Wall Street Reform and Consumer Protection Act to revise the prohibition against federal government assistance to (bailouts of) registered swap dealers, security-based swap dealers, major swap participants, or major security-based swap participants with respect to any swap, security-based swap, or other activity.
Extends the meaning of "covered depository institution" to include an uninsured U.S. branch or agency of a foreign bank that has a prudential regulator as well as an insured depository institution (as covered by current law).
Repeals the application of this prohibition to any insured depository institution unless it limits its swap or security-based swap activities to:
(1) hedging and other similar risk mitigating activities directly related to the institution's activities;
(2) acting as a swaps entity for swaps or security-based swaps involving rates or reference assets permissible for investment by a national bank; or
(3) acting as a swaps entity for credit default swaps, including swaps or security-based swaps involving the credit risk of asset-backed securities, but only if they are cleared by a derivatives clearing organization under the Commodity Exchange Act, or a clearing agency registered, or exempt from registration, as a derivatives clearing organization, or as a clearing agency under the Securities Exchange Act. Replaces these requirements for exemption from the prohibition with a declaration that the prohibition against federal assistance to swaps entities shall not apply to a covered depository institution that limits swap and security-based swap activities to:
(1) hedging and similar risk mitigating activities directly related to the institution's activities, or
(2) acts as a swaps entity for swaps or security-based swaps other than a structured finance swap.
Defines "structured finance swap" as a swap or security-based swap based on an asset-backed security (or group or index primarily composed of asset-backed securities).
Exempts also from the prohibition against federal assistance to swaps entities any covered depository institution that acts as a swaps entity for structured finance swaps or security-based swaps if:
(1) they are undertaken for hedging or risk management purposes; or
(2) each asset-backed security underlying such structured finance swaps is of a credit quality and of a type or category authorized by the prudential regulators.
Exempts from the prohibition entirely any swap or security-based swap activity conducted outside the United States with a non-U.S. counterparty by a non-U.S. swaps entity licensed, in the case of a foreign branch of a U.S. depository institution, or organized under the laws of a jurisdiction outside the United States.

House Republican Conference Summary

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No summary available.

House Democratic Caucus Summary

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The bill contains the following citations to other parts of U.S. law:

United States Code

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