IB
113th CONGRESS
1st Session
H. R. 992
IN THE HOUSE OF REPRESENTATIVES
AN ACT
To amend provisions in section 716 of the Dodd-Frank Wall Street Reform and Consumer Protection Act relating to Federal assistance for swaps entities.
Short title
This Act may be cited as the
Swaps Regulatory Improvement Act
.
Reform of prohibition on swap activity assistance
Section 716 of the Dodd-Frank Wall Street Reform and Consumer Protection Act ( 15 U.S.C. 8305 ) is amended—
in subsection (b)—
in paragraph (2)(B), by striking insured depository institution
and inserting covered depository institution
; and
by adding at the end the following:
Covered depository institution
The term covered depository institution means—
an insured depository institution, as that term is defined in section 3 of the Federal Deposit Insurance Act ( 12 U.S.C. 1813 ); and
a United States uninsured branch or agency of a foreign bank.
;
in subsection (c)—
in the heading for such subsection, by striking
insured
and inserting
covered
;
by striking an insured
and inserting a covered
;
by striking such insured
and inserting such covered
; and
by striking or savings and loan holding company
and inserting savings and loan holding company, or foreign banking organization (as such term is defined under Regulation K of the Board of Governors of the Federal Reserve System (12 C.F.R. 211.21(o)))
;
by amending subsection (d) to read as follows:
Only bona fide hedging and traditional bank activities permitted
In general
The prohibition in subsection (a) shall not apply to any covered depository institution that limits its swap and security-based swap activities to the following:
Hedging and other similar risk mitigation activities
Hedging and other similar risk mitigating activities directly related to the covered depository institution's activities.
Non-structured finance swap activities
Acting as a swaps entity for swaps or security-based swaps other than a structured finance swap.
Certain structured finance swap activities
Acting as a swaps entity for swaps or security-based swaps that are structured finance swaps, if—
such structured finance swaps are undertaken for hedging or risk management purposes; or
each asset-backed security underlying such structured finance swaps is of a credit quality and of a type or category with respect to which the prudential regulators have jointly adopted rules authorizing swap or security-based swap activity by covered depository institutions.
Definitions
For purposes of this subsection:
Structured finance swap
The term structured finance swap means a swap or security-based swap based on an asset-backed security (or group or index primarily comprised of asset-backed securities).
Asset-backed security
The term asset-backed security has the meaning given such term under section 3(a) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78c(a) ).
;
in subsection (e), by striking an insured
and inserting a covered
; and
in subsection (f)—
by striking an insured depository
and inserting a covered depository
; and
by striking the insured depository
each place such term appears and inserting the covered depository
.
Passed the House of Representatives October 30, 2013.
Karen L. Haas,
Clerk.
