I
113th CONGRESS
1st Session
H. R. 992
IN THE HOUSE OF REPRESENTATIVES
March 6, 2013
Mr. Hultgren (for himself, Mr. Himes, Mr. Hudson, and Mr. Sean Patrick Maloney of New York) introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committee on Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned
A BILL
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
.
