H.R. 6955 — what changed

“(V) Agricultural loans—Secured or unsecured loans for agricultural purposes.”

removed “(A) In general—Upon receiving”

removed “(B) Complete record on an application

removed “(i) Notice to applicant—Not later than 30 days after the date on which the Board receives an application for approval under this section, the Board shall transmit to the applicant a letter that either—

removed “(I) confirms the record on the application is complete; or

removed “(II) details all additional information that is required for the record on that application to be complete.

removed “(ii) Extension of notice—Notwithstanding clause (i), the Board may, if an application is complex, extend the 30-day period described under clause (i) for an additional 30 days.

removed “(iii) Receipt of response; deeming of complete record—Upon receipt of a response from an applicant to a notice requesting additional information described under clause (i)(II), the record on the application shall be deemed complete unless the Board—

removed “(I) determines that the applicant’s response was materially deficient; and

removed “(II) not later than 30 days after the date on which the Board received the response, provides the applicant a detailed notice describing the deficiencies.

removed “(iv) Treatment of third-party information—In determining whether the record on an application is complete, the Board may take into account only information provided by the applicant, and may not base the determination of completeness on any information (including reports, views, or recommendations) provided by third parties.

removed “(C) Deadline for determination

removed “(i) In general—Notwithstanding subparagraphs (A) and (B), the Board shall grant or deny an application submitted under this section not later than 90 days after the date on which the application was initially submitted to the Board, regardless of whether the record on such initial application was complete.

removed “(ii) Failure to make a determination—If the Board does not grant or deny an application within the time period described under clause (i), such application shall be deemed to have been granted.

removed “(iii) Tolling of period—The Board may at any time extend the deadline described under clause (i) at the request of the applicant, but may not extend the deadline more than 30 days past the deadline described under clause (i).”

removed “(7) Complete record on an application

removed “(A) Notice to applicant—Not later than 30 days after the date on which the Board receives an application for approval under this subsection, the Board shall transmit to the applicant a letter that either—

removed “(i) confirms the record on the application is complete; or

removed “(ii) details all additional information that is required for the record on that application to be complete.

removed “(B) Extension of notice—Notwithstanding subparagraph (A), the Board may, if an application is complex, extend the 30-day period described under subparagraph (A) for an additional 30 days.

removed “(C) Receipt of response; deeming of complete record—Upon receipt of a response from an applicant to a notice requesting additional information described under subparagraph (A)(ii), the record on the application shall be deemed complete unless the Board—

removed “(i) determines that the applicant’s response was materially deficient; and

removed “(ii) not later than 30 days after the date on which the Board received the response, provides the applicant a detailed notice describing the deficiencies.

removed “(D) Treatment of third-party information—In determining whether the record on an application is complete, the Board may take into account only information provided by the applicant, and may not base the determination of completeness on any information (including reports, views, or recommendations) provided by third parties.

removed “(8) Deadline for determination

removed “(A) In general—Notwithstanding any other provision of this subsection, the Board shall grant or deny an application submitted under this subsection not later than 90 days after the date on which the application was initially submitted to the Board, regardless of whether the record on such initial application was complete.

removed “(B) Failure to make a determination—If the Board does not grant or deny an application within the time period described under subparagraph (A), such application shall be deemed to have been granted.

removed “(C) Tolling of period—The Board may at any time extend the deadline described under subparagraph (A) at the request of the applicant, but may not extend the deadline more than 30 days past the deadline described under subparagraph (A).”

removed “(14) Complete record on an application

removed “(A) Notice to applicant—Not later than 30 days after the date on which the responsible agency receives a merger application for approval under this subsection, the responsible agency shall transmit to the applicant a letter that either—

removed “(i) confirms the record on the application is complete; or

removed “(ii) details all additional information that is required for the record on that application to be complete.

removed “(B) Extension of notice—Notwithstanding subparagraph (A), the responsible agency may, if an application is unusually complex, extend the 30-day period described under subparagraph (A) for an additional 30 days.

removed “(C) Receipt of response; deeming of complete record—Upon receipt of a response from an applicant to a notice requesting additional information described under subparagraph (A)(ii), the record on the application shall be deemed complete unless the responsible agency—

removed “(i) determines that the applicant’s response was materially deficient; and

removed “(ii) not later than 30 days after the date on which the responsible agency received the response, provides the applicant a detailed notice describing the deficiencies.

removed “(D) Treatment of third-party information—In determining whether the record on an application is complete, the responsible agency may take into account only information provided by the applicant, and may not base the determination of completeness on any information (including reports, views, or recommendations) provided by third parties.

removed “(15) Deadline for determination

removed “(A) In general—Notwithstanding any other provision of this subsection, the responsible agency shall grant or deny a merger application submitted under this subsection not later than 90 days after the date on which the application was initially submitted to the responsible agency, regardless of whether the record on such initial application was complete.

removed “(B) Failure to make a determination—If the responsible agency does not grant or deny an application within the time period described under subparagraph (A), such application shall be deemed to have been granted.

removed “(C) Tolling of period—The responsible agency may at any time extend the deadline described under subparagraph (A) at the request of the applicant, but may not extend the deadline more than 30 days past the deadline described under subparagraph (A).”

changed Not later than 180 days after the date of the enactment of this Act, the Board of Governors of the Federal Reserve System shall revise appendix C to part 225 of title 12, Code of Federal Regulations (commonly known as the “Small Bank Holding Company and Savings and Loan Holding Company Policy Statement”), to raise the consolidated asset threshold under that appendix to $25,000,000,000 $6,000,000,000 for any bank holding company or savings and loan holding company.

“177. Periodic adjustments to thresholds to account for increases in current-dollar United States gross domestic product

“(a) In general—By April 1, 2031, and the 1st day of each subsequent 5-year period, the Board of Governors shall increase the thresholds described in subsection (b) by the ratio, if greater than 1, of the annual value of current-dollar United States gross domestic product, published by the Department of Commerce, for the calendar year preceding the year in which the adjustment is calculated under this section, to the published annual value of such index for the calendar year preceding April 1, 2026.

“(b) Covered thresholds—The thresholds described in this subsection are the following:

“(1) Each bank holding company or savings and loan holding company total consolidated asset amount in the second subsection (s) (relating to assessments) of section 11 of the Federal Reserve Act.

“(2) Each bank holding company total consolidated asset amount in—

changed “(A) sections 116(a), 121(a), 163(b), 164, 165(a)(1), 165(h)(2), and 165(j)(1) of this Act; and

“(B) section 401(f) of the Economic Growth, Regulatory Relief, and Consumer Protection Act.

“(3) Each financial company total consolidated asset amount in section 165(i)(2)(A) of this Act.

“(c) Currency of information—The values used in the calculation under subsection (a) shall be, as of the date of the calculation, the values most recently published by the Department of Commerce.

“(d) Rounding

“(1) If any amount equal to or greater than $100,000,000,000 determined under subsection (a) for any period is not a multiple of $50,000,000,000, the amount shall be rounded up to the nearest $50,000,000,000.

“(2) If any amount less than $100,000,000,000 determined under subsection (a) for any period is not a multiple of $5,000,000,000, the amount shall be rounded up to the nearest $5,000,000,000.

“(e) Publication—Not later than April 5 of any calendar year in which an adjustment is required to be calculated under subsection (a), the Board of Governors shall publish in the Federal Register the amounts as so calculated.

“(f) Implementation period—Any increase in amounts determined under subsection (a) shall take effect on January 1 of the year immediately succeeding the calendar year in which the increase is required to be calculated under subsection (a).

“178. Adjustments to thresholds established by rule to account for increases in current-dollar United States gross domestic product

“(a) Agency review—Not later than June 30, 2026, and the 1st day of each subsequent 5-year period, the Board of Governors, the Comptroller of the Currency, and the Corporation shall, to the extent applicable, review—

“(1) any regulation—

“(A) implementing section 165 of this Act; or

“(B) making specific cross-reference to any regulation of the Board of Governors implementing section 165 of this Act; and

“(2) any asset threshold or other quantitative threshold in such regulations implementing section 165 of this Act, or in such regulations making specific cross-reference to any regulation of the Board of Governors implementing section 165 of this Act, the amount of which is not prescribed by statute.

“(b) Modifications required—The Board of Governors, the Comptroller of the Currency, and the Corporation shall modify any such thresholds identified by each review conducted under subsection (a) by the ratio, if greater than 1, of the annual value of current-dollar United States gross domestic product, published by the Department of Commerce, for the calendar year preceding the year in which the modification is calculated under this section, to the published annual value of such index for the calendar year preceding the effective date of such threshold, as each respective agency shall determine as appropriate for such regulations. In making such determination, the Board of Governors, the Comptroller of the Currency, and the Corporation shall—

“(1) use the values for current-dollar United States gross domestic product most recently published by the Department of Commerce as of the date of commencement of the review;

“(2) seek to establish, to the extent feasible, uniform thresholds for use by each such agency, taking into account the entities regulated by each such agency and the purposes for which such threshold was established; and

“(3) seek to adjust such thresholds, to the extent feasible, with rounding consistent with section 177(d) of this Act.

changed “(c) Report—Upon conclusion of each review required under subsection (a), each of the Board of Governors, the Comptroller of the Currency, and the Corporation shall transmit a report to Congress the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate containing a description of any modification of any regulation such agency made pursuant to subsection (b).”

“1012. Amendments to the CAMELS Rating System

“(a) In general—The Council shall make recommendations to amend the Uniform Financial Institutions Rating System, and the CAMELS components thereunder, to—

changed “(1) establish clear articulable, clear, and objective reviewable criteria for assessing each CAMELS component;

“(2) revise the factors affecting each CAMELS component to derive a composite rating that more accurately reflects the material financial condition and risk profile of the financial institutions being rated;

“(3) either—

“(A) eliminate the management component of the CAMELS rating system; or

changed “(B) revise the management component of the CAMELS rating system to limit the assessment under such component to objective articulable, clear, and reviewable measures of the governance and controls used to manage an institution’s risk profile;

“(4) ensure that composite ratings consider the financial institution’s compliance with—

“(A) section 21 of the Federal Deposit Insurance Act (12 U.S.C. 1829b);

“(B) chapter 2 of title I of Public Law 91–508 (12 U.S.C. 1951 et seq.);

“(C) subchapter II of chapter 53 of title 31, United States Code; and

“(D) any other applicable requirements and implementing regulations relating to the prevention of money laundering and terrorist financing; and

“(5) ensure that composite ratings are determined based on a transparent methodology that is limited to the objective criteria established for each CAMELS component.

“(b) Rulemaking—Not later than 12 months after the Council makes the recommendations required under subsection (a), the Federal financial institutions regulatory agencies shall, jointly, issue rules to carry out the recommendations described under subsection (a).

“(c) Public comment period—In issuing the rules required under subsection (b), the Federal financial institutions regulatory agencies shall—

“(1) publish a notice of proposed rulemaking with respect to such rules; and

“(2) provide for a public comment period of not less than 90 days.

“(d) Rule of construction—Nothing in this section may be construed to limit the authority of the Federal financial institutions regulatory agencies to take supervisory, adjudicatory, or enforcement actions to ensure the safety and soundness of financial institutions.”

“1013. Timeliness of examinations and examination reports

changed “(a) Timeliness of examinations—A Federal financial institutions regulatory agency shall complete any examination of a financial institution, other than a financial institution subject to a continuous or resident examination program, within 270 days of commencing the examination, except that such period may be extended by the Federal financial institutions regulatory agency by providing written notice to the financial institution describing with particularity the reasons that a longer period is needed.

changed “(b) Final examination report—A Federal financial institutions regulatory agency shall provide a final examination report to a financial institution, other than a financial institution subject to a continuous or resident examination program, not later than 90 days after the later of—

“(1) the exit interview for an examination of the institution; or

“(2) the provision of additional material information by the institution relating to the examination.

changed “(c) Exit interview requirement—Within 30 days of completing an examination, examination for a financial institution not subject to a continuous or resident examination program, a Federal financial institutions regulatory agency shall conduct an exit interview with the financial institution’s senior management, management or the board of directors, except that such period may be extended by the Federal financial institutions regulatory agency by providing written notice to the institution and the Board describing with particularity the reasons that a longer period is needed to complete the exit interview.

changed “(d) Examination materials—Upon the written request of a financial institution, the Federal financial institutions regulatory agency shall include with the final report an appendix listing all examination or other factual information relied upon by the agency in support of a material supervisory determination.”

changed “1014. Timeliness of required permission, regulatory, and reporting guidanceprudential private letter rulings

changed “(a) Request for permission or guidance—With respect to an action that a financial institution is taking or is intending to take, the financial institution may request a written determination by the applicable Federal financial institutions regulatory agency of—Authority and regulation

changed “(1) the agency’s non-objection to In general—Each Federal financial institutions regulatory agency shall establish procedures providing that a covered financial institution may, upon application by the covered financial institution conducting and with respect to a particular activity;covered action, obtain written advice regarding—

changed “(2) “(A) the agency’s interpretation of non-objection to the financial institution conducting a law or regulation; andparticular activity;

changed “(3) “(B) the agency’s interpretation of generally accepted accounting principles a law or accounting objectives, standards, and requirements.regulation as applied to a particular matter;

changed “(b) Contents “(C) the agency’s interpretation of request—A request made under subsection (a) shall be in writing how generally accepted accounting principles or accounting objectives, standards, and contain—requirements apply to a particular matter; or

added “(D) the agency’s application of any supervisory guidance, statement of policy, or interpretive rule to a particular matter.

added “(2) Covered action defined—In this subsection and with respect to a covered financial institution, the term “covered action” means—

added “(A) any action in connection with a regulated activity that the covered financial institution is taking or is intending to take, including—

added “(i) entering into a transaction;

added “(ii) issuing a product or service; or

added “(iii) changing the corporate structure of the covered financial institution; and

added “(B) a Federal financial institutions regulatory agency’s objection to the covered financial institution commencing or otherwise conducting an activity (including an action described in subparagraph (A)).

added “(b) Contents of request—The procedures established under subsection (a) shall provide that a request for written advice made under the procedures shall be in writing and contain—

“(1) the nature of the request;

“(2) applicable facts relating to the matter;

“(3) applicable law, regulation, or generally accepted accounting principles relating to the matter; and

“(4) a summary of the request.

added “(c) Response to request—A Federal financial institutions regulatory agency receiving a request for written advice under subsection (a) shall, not later than 30 days after receiving the request—

removed “(c) Response To request—A Federal financial institutions regulatory agency receiving a request under subsection (a) shall, not later than 30 days after receiving the request—

“(1) provide the financial institution making the request with written notification that the agency received the request and stating whether the request contains all of the information required under subsection (b); and

added “(2) if the request does not contain all of the information required under subsection (b)—

added “(A) provide the financial institution with an explanation of what information is missing; and

added “(B) notify the financial institution that the financial institution may provide the missing information to the agency within 30 days.

added “(d) Providing missing information—If a Federal financial institutions regulatory agency informs the financial institution under subsection (c) that the request for written advice does not contain all the information required under subsection (b), the financial institution may provide the missing information to the Federal financial institutions regulatory agency during the 30-day period beginning on the date the financial institution receives the explanation of the missing information under subsection (c).

added “(e) Determination—A Federal financial institutions regulatory agency receiving a request for written advice under the procedures established under subsection (a) shall provide the financial institution with a written response (or, for purposes of paragraph (3), notify the financial institution that a determination cannot be made)—

added “(1) if the initial request contains the information required under subsection (b), not later than the end of the 60-day period beginning on the date the Federal financial institutions regulatory agency notifies the financial institution of the receipt of the request under subsection (c);

removed “(2) if the request does not contain all of the information required under subsection (b), provide the financial institution with an explanation of what information is missing.

removed “(d) Providing missing information—If a Federal financial institutions regulatory agency informs the financial institution under subsection (c) that the request does not contain all the information required under subsection (b), the financial institution may provide the missing information to the Federal financial institutions regulatory agency during the 30-day period beginning on the date the financial institution receives the explanation of the missing information under subsection (c).

removed “(e) Determination—A Federal financial institutions regulatory agency receiving a request under subsection (a) shall make a determination on the request and provide the financial institution with a written notice of such determination—

removed “(1) if the initial request contains the information required under subsection (b), not later than the end of the 60-day period beginning on the date the Federal financial institutions regulatory agency notifies the financial institution of the receipt of the request under subsection (c); or

“(2) if the initial request does not contain the information required under subsection (b), but the financial institution provides the missing information during the 30-day period described under subsection (d), not later than the end of the 60-day period beginning on the date such missing information is provided; or

“(3) if the initial request does not contain the information required under subsection (b), and the financial institution does not provide the missing information during the 30-day period described under subsection (d), not later than the end of the 60-day period beginning on the end of such 30-day period.

added “(f) Limited binding effect—Written advice issued by a Federal financial institutions regulatory agency under the procedures established under this section—

added “(1) shall be binding on the agency with respect to the financial institution requesting the written advice and the specific facts described in the request;

added “(2) may be relied upon by the financial institution requesting the written advice in good faith; and

added “(3) shall not be binding on the agency with respect to any other person or institution and shall not be treated as precedent.

added “(g) Confidentiality and privilege

added “(1) Treatment of written advice—Written advice issued under this section, and any materials submitted in connection therewith, and the fact that a request for written advice was made shall be treated as confidential supervisory information and exempt from disclosure under section 552(b) of title 5, United States Code.

added “(2) Publishing of anonymized or redacted summaries—A Federal financial institutions regulatory agency may publish anonymized or redacted summaries of rulings for informational purposes.

added “(h) Modification or revocation—A Federal financial institutions regulatory agency may modify or revoke written advice issued under this section only if—

added “(1) the requesting financial institution made a material misstatement or omission of fact;

added “(2) there has been a change in controlling law; or

added “(3) the ruling is inconsistent with a final rule or judicial decision issued after the date the written advice was issued.

added “(i) Reasonable fees—Each Federal financial institutions regulatory agency may establish and collect a reasonable fee for the processing and issuance of any written advice issued under this section, and such fee—

added “(1) shall be based on the estimated cost to the agency of reviewing, analyzing, and responding to the request;

added “(2) may vary based on the complexity of the request or the size of the requesting institution; and

added “(3) shall be prescribed by regulation.

added “(j) Finality—Written advice issued under the procedures established under this section shall not be construed as a final agency action.”

removed “(f) Reports and publication—Each Federal financial institutions regulatory agency shall, within 120 days after making a determination under paragraph (5), publish a summary of the determination on the public website of the Federal financial institutions regulatory agency. Each Federal financial institutions regulatory agency shall redact any confidential supervisory information about the financial institution, any identifying facts about the financial institution, and any sensitive personally identifiable information, and anonymize any un-redacted information that could, individually or in the aggregate, identify the financial institution.”

“1015. Office of Independent Examination Review

“(a) Establishment—There is established in the Council an Office of Independent Examination Review (the “Office”).

“(b) Board of Independent Examination Review

“(1) In general—The head of the Office shall be the Board of Independent Examination Review, which shall be comprised of 3 members, appointed by the President, by and with the advice and consent of the Senate.

changed “(2) Qualifications—The President shall appoint the 1 member of the Board from each of the following classes of individuals:

“(A) Individuals who have been employed by a Federal financial institutions regulatory agency.

changed “(B) Individuals who are not, and were not during the previous 5-year period, employed by a Federal financial institutions regulatory agency or a Federal reserve bank and who—

“(i) are a licensed attorney or a certified public accountant authorized to practice under the laws of a State, the District of Columbia, or a territory of the United States;

changed “(ii) have either academic or private sector experience;experience relating to financial services; or

changed “(iii) have relevant work-related experience in consumer affairs or compliance with consumer protection laws with respect to financial institutions; andinstitutions.

changed “(iv) are not, and were not during the previous 10-year period, employed by a Federal banking agency, a Federal reserve bank, or the National Credit Union Administration.“(C) Individuals with at least 10 years private sector financial services senior management-level experience.

removed “(C) Individuals—

removed “(i) with at least 10 years private sector financial services senior management-level experience; and

removed “(ii) recommended by—

removed “(I) an insured depository institution;

removed “(II) an insured credit union; or

removed “(III) a trade association for such institutions or credit unions.

“(3) Prohibition on certain individuals serving as a Board member—The President may not appoint an individual as a member of the Board if the individual—

added “(A) is, or was during the previous 2-year period, employed by a Federal financial institutions regulatory agency or a Federal reserve bank; or

added “(B) is, or was during the previous 2-year period, employed by a financial institution.

removed “(A) is, or was during the previous 2-year period, employed by a Federal financial institutions regulatory agency or a Federal reserve bank;

removed “(B) is, or was during the previous 2-year period, employed by a financial institution; or

removed “(C) is reporting, or was reporting in the past 5 years, directly or indirectly to a Federal financial institutions regulatory agency official who makes material supervisory determinations.

“(4) Consultation—In appointing members of the Board, the President shall consult with the Federal financial institutions regulatory agencies and financial institutions.

“(5) Term

added “(A) In general—Each member of the Board shall serve for a term of 3 years. Upon the expiration of a member’s terms of office, the member shall continue to serve until the member’s successor has been confirmed by the Senate.

removed “(A) In general—Each member of the Board shall serve for a term of 3 years.

“(B) Term limitation—No individual may serve more than 2 full terms on the Board.

“(6) Political affiliation—Not more than 2 members of the Board shall be members of the same political party.

“(7) Quorum

“(A) In general—3 members of the Board shall constitute a quorum.

“(B) Initial quorum—During the 6-month period beginning on the date of enactment of this section, 1 member of the Board shall constitute a quorum until the Board has 3 members.

added “(8) Rate of pay—The annual rate of basic pay for the members of the Board shall be the rate of basic pay for Level IV of the Executive Schedule under section 5315 of title 5, United States Code.

added “(c) Staffing—The Board is authorized to hire staff to support the activities of the Office of Independent Examination Review, and set the salaries of such staff. One-fifth of the costs and expenses of the Office, including the salaries of its employees, shall be paid by each of the Federal financial institutions regulatory agencies. Annual assessments for such share shall be levied by the Council based upon its projected budget for the year, and additional assessments may be made during the year if necessary.

removed “(c) Staffing—The Board is authorized to hire staff to support the activities of the Office of Independent Examination Review. One-fifth of the costs and expenses of the Office, including the salaries of its employees, shall be paid by each of the Federal financial institutions regulatory agencies. Annual assessments for such share shall be levied by the Council based upon its projected budget for the year, and additional assessments may be made during the year if necessary.

“(d) Duties—The Board shall—

added “(1) receive and, at the discretion of the Board, investigate complaints from financial institutions, their representatives, or another entity acting on behalf of such institutions, concerning completed examinations, examination practices, or examination reports;

removed “(1) receive and, at the discretion of the Board, investigate complaints from financial institutions, their representatives, or another entity acting on behalf of such institutions, concerning examinations, examination practices, or examination reports;

“(2) hold meetings, at least once every three months and in locations designed to encourage participation from all sections of the United States, with financial institutions, their representatives, or another entity acting on behalf of such institutions, to discuss examination procedures, examination practices, or examination policies;

“(3) review examination procedures of the Federal financial institutions regulatory agencies to ensure that the written examination policies of those agencies are being followed in practice and adhere to the standards for consistency;

“(4) conduct a continuing and regular program of examination quality assurance for all examination types conducted by the Federal financial institutions regulatory agencies;

“(5) carry out an independent review of any supervisory appeal initiated under section 1016; and

“(6) report annually to the Committee on Financial Services of the House of Representatives, the Committee on Banking, Housing, and Urban Affairs of the Senate, and the Council, on the reviews carried out pursuant to paragraphs (3) and (5), including compliance with the requirements set forth in section 1014 regarding timeliness of examination reports, and the Board’s recommendations for improvements in examination procedures, practices, and policies.

added “(e) Confidentiality

added “(1) In general—The Board and the Council shall keep confidential—

added “(A) all meetings, discussions, and information provided by financial institutions and Federal financial institutions regulatory agencies that involve confidential supervisory information or privileged information;

added “(B) all information and communications exchanged between a financial institution and the Office of Independent Examination Review; and

added “(C) all information and communications exchanged between a Federal financial institutions regulatory agency and the Office of Independent Examination Review.

added “(2) Submission of information does not constitute a waiver—Section 18(x) of the Federal Deposit Insurance Act (12 U.S.C. 1828(x)) shall apply to the submission of information to the Board by a financial institution or a Federal financial institutions regulatory agency to the same extent as such section 18(x) applies to the submission of information described in that section 18(x).

changed “(e) Confidentiality—The “(3) Sharing of information without waiving privilege—The Board and the Council shall keep confidential—be considered a “covered agency” for purposes of section 11(t) of the Federal Deposit Insurance Act (12 U.S.C. 1821(t)).”

removed “(1) all meetings, discussions, and information provided by financial institutions and Federal financial institutions regulatory agencies that involve confidential supervisory information or privileged information;

removed “(2) all information and communications exchanged between a financial institution and the Office of Independent Examination Review; and

removed “(3) all information and communications exchanged between a Federal financial institutions regulatory agency and the Office of Independent Examination Review.”

“(4) the term Board means the Board of Independent Examination Review established under section 1015(b);

“(5) the term material supervisory determination has the meaning given such term in section 309(c) of the Riegle Community Development and Regulatory Improvement Act of 1994;

“(6) the term insured depository institution has the meaning given that term in section 3 of the Federal Deposit Insurance Act; and

“(7) the term insured credit union has the meaning given that term in section 101 of the Federal Credit Union Act.”

“1016. Right to independent review of material supervisory determinations

“(a) In general—A financial institution shall have the right to obtain an independent review, as described in this section, of a material supervisory determination contained in a final report of examination.

“(b) Notice

changed “(1) Timing—A financial institution seeking review of a material supervisory determination under this section shall file a written notice with the Board within 60 30 days after receiving the final report of examination that is the subject of such review.

“(2) Extension—The institution may file a written request with the Board for an extension of the 60-day time period described under paragraph (1), which shall state good cause for granting the extension. Such request shall be granted in the sole discretion of the Board.

“(3) Identification of determination—The written notice shall—

“(A) identify the material supervisory determination that is the subject of the requested independent examination review;

“(B) state the reasons why the institution believes that the material supervisory determination is incorrect or should otherwise be modified; and

“(C) include—

“(i) a clear and complete statement of all relevant facts and issues;

“(ii) all arguments that the institution wishes to present; and

“(iii) all relevant and material documents in the possession of the institution that the institution wishes to be considered.

changed “(4) Information made available to institution—An institution seeking an appeal a review of a material supervisory determination may, not later than 7 days after receiving the final examination report, request that the Federal financial institutions regulatory agency that made the material supervisory determination provide the institution with all examination and factual information relied upon by the agency in making the material supervisory determination. The agency shall provide that information to the institution not later than 14 days after receiving the request.

added “(5) Submission of record—After receiving a written notice of review from a financial institution under this subsection, the Board shall direct the Federal financial institutions regulatory agency that made the material supervisory determination under review to file with the Board the supervisory record of the examination resulting in the material supervisory determination under review.

“(c) Determination; right to hearing

“(1) In general—The Board shall—

added “(A) determine the merits on the record, including whether the material supervisory determination being reviewed should be upheld, canceled, or modified; or

removed “(A) determine the merits of the appeal on the record, including whether the material supervisory determination being appealed should be upheld, canceled, or modified; or

“(B) at the election of the financial institution, conduct a hearing, which shall take place not later than 60 days after the petition for review is received by the Board.

“(2) Right to obtain testimony—A financial institution electing for a hearing under paragraph (1)(B) shall have the right the obtain testimony under oath from agency employees and obtain documents and other evidence at the hearing, or in advance of the hearing, according to procedures instituted by the Board consistent with those set forth under sections 556 and 557 of title 5, United States Code.

“(3) Basis of decision—The Board shall issue a written decision based upon the record of the examination, supplemented by the record established at any hearing.

added “(4) Standard of review—The Board’s review of a material supervisory determination being reviewed under this subsection shall be de novo, and the Board shall not defer to the opinions of examiners, but shall independently determine the appropriateness of the material supervisory determination based upon the relevant statutes, regulations, other appropriate guidance, and the evidentiary record.

added “(5) Policy matters—The Board shall conduct reviews under this section applying the policies, regulations, and interpretations of the Federal financial institutions regulatory agency that made the material supervisory determination under review in effect at the time the material supervisory determination was made.

removed “(4) Standard of review—The Board’s review of a material supervisory determination being appealed under this subsection shall be de novo, and the Board shall not defer to the opinions of the examiner or agency, but shall independently determine the appropriateness of the agency’s material supervisory determination based upon the relevant statutes, regulations, other appropriate guidance, and the evidentiary record.

“(d) Final decision—A decision by the Board on an independent review under this section shall—

“(1) be made not later than 60 days after the record has been closed; and

removed “(2) be deemed final agency action and shall bind the agency whose supervisory determination was the subject of the review and the financial institution requesting the review.

removed “(e) Right to judicial review—A financial institution shall have the right to petition for review of a Board determination made under subsection (d) by filing a petition for review not later than 60 days after the date on which the decision is made in the United States Court of Appeals for the District of Columbia Circuit or the Circuit in which the financial institution is located.

changed “(f) Referral “(2) be deemed final and shall bind the agency whose supervisory determination was the subject of violations—If the Board, in carrying out this section, determines that a review and the financial institution has violated a law or regulation, the Board shall refer such determination to requesting the applicable Federal financial institutions regulatory agency.review.

changed “(g) Annual report“(e) Referral of violations—If the Board, in carrying out this section, determines that a financial institution has violated a law or regulation, the Board shall refer such determination to the applicable Federal financial institutions regulatory agency.

added “(f) Annual report

“(1) In general—The Board shall report annually to the Committee on Financial Services of the House of Representatives, the Committee on Banking, Housing, and Urban Affairs of the Senate, and the Council on actions taken under this section, including the types of issues that the Board has reviewed and the results of those reviews, including information on each final determination with respect to a material supervisory determination.

“(2) Confidentiality—In reporting under paragraph (1), the Board shall redact information about individual financial institutions and any confidential supervisory information or privileged information shared by financial institutions, and shall anonymize any un-redacted information that could, in the aggregate, identify a financial institution.

added “(g) Retaliation prohibited

removed “(h) Retaliation prohibited

“(1) In general—A Federal financial institutions regulatory agency may not—

“(A) retaliate against a financial institution, including service providers, or any institution-affiliated party, for exercising appellate rights under this section; or

“(B) delay or deny any agency action that would benefit a financial institution or any institution-affiliated party on the basis that an appeal under this section is pending under this section.

“(2) Retaliation—For purposes of this subsection, retaliation includes delaying consideration of, or withholding approval of, any request, notice, or application that otherwise would have been approved, but for the exercise of a financial institution’s rights under this section.

added “(h) Rulemaking—The Board shall issue rules to establish procedures for hearings described under this section, including that—

removed “(i) Rulemaking—The Board shall issue rules to establish procedures for hearings described under this section, including that—

“(1) a financial institution may appear at the hearing personally or through counsel;

“(2) a financial institution may provide an oral and written presentation at the hearing;

“(3) the Board may ask questions of any person participating in the hearing;

removed “(4) the hearing may not involve—

changed “(A) a cross-examination; or“(4) the hearing shall not be governed by the Federal Rules of Evidence; and

changed “(B) discovery;“(5) the Board shall have a verbatim transcript of the hearing prepared.

changed “(5) the hearing “(i) Safety and soundness exception—The appeal of a material supervisory determination by a financial institution under this section shall not be governed by affect the authority of a Federal Rules financial institutions regulatory agency during the pendency of Evidence; andsuch appeal to enforce the material supervisory determination or to take an action based on such material supervisory determination, if the Federal financial institutions regulatory agency determines that such enforcement or action is necessary to ensure the immediate safety and soundness of the financial institution.”

removed “(6) the Board shall have a verbatim transcript of the hearing prepared.

removed “(j) Safety and soundness exception—The appeal of a material supervisory determination by a financial institution under this section shall not affect the authority of a Federal financial institutions regulatory agency during the pendency of such appeal to enforce the material supervisory determination or to take an action based on such material supervisory determination, if the Federal financial institutions regulatory agency determines that such enforcement or action is necessary to ensure the immediate safety and soundness of the financial institution.”

“(D) ensure that appropriate safeguards exist for protecting any party from retaliation by any agency for exercising rights under this subsection.”

“(6) Retaliation—For purposes of this subsection, retaliation includes delaying consideration of, or withholding approval of, any request, notice, or application that otherwise would have been approved, but for the exercise of a financial institution’s rights under this section.”

“(iv) any issue specifically listed in an exam report as a matter requiring attention by the institution’s management or board of directors; and

“(v) any suspension or removal of an institution’s status as eligible for expedited processing of applications, requests, notices, or filings on the grounds of a supervisory or compliance concern, regardless of whether that concern has been cited as a basis for a material supervisory determination or matter requiring attention in an examination report, provided that the conduct at issue did not involve violation of any criminal law; and”

“(1) the term Federal financial institutions regulatory agencies—

“(A) means the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the National Credit Union Administration; and

“(B) includes the Bureau of Consumer Financial Protection for purposes of sections 1012 through 1015;”

added “(11) Hearing—With respect to any notice properly issued and served upon a depository institution or institution-affiliated party under this subsection, such depository institution or institution-affiliated party shall be afforded a hearing before—

added “(A) the appropriate Federal banking agency; or

added “(B) if such institution or person submits a request within 20 days after the issuance of the notice, the appropriate United States district court, and that court shall have jurisdiction to adjudicate all claims and requested remedies stated in the notice of charges, including those authorized under this subsection.”

added “(8) Hearing—With respect to any notice properly issued and served upon an institution-affiliated party under this subsection, such institution-affiliated party shall be afforded a hearing before—

added “(A) the appropriate Federal banking agency; or

added “(B) if such party submits a request for such hearing and forum within 20 days after the issuance of the notice, the appropriate United States district court, and that court shall have jurisdiction to adjudicate all claims and requested remedies stated in the notice, including those authorized under this subsection.”

added “(4) Any hearing provided for in subsection (b)(11)(B), (e)(8)(B), or (i)(2)(H)(ii) shall be subject to the jurisdiction, powers, and equitable authority of the district court and be governed by the Federal Rules of Civil Procedure and the Federal Rules of Evidence.

added “(5) Any final decision of a United States district court made pursuant to a respondent’s election under subsection (b)(11)(B), (e)(8)(B), or (i)(2)(H)(ii) shall be reviewable in the appropriate court of appeals in the same manner and to the same extent as any other civil action to which the United States is a party.”

added “(ii) Finality of assessment—If, with respect to any assessment under clause (i), a hearing is not requested or an election is not made and timely noticed pursuant to subparagraph (H) within the period of time allowed under such subparagraph, the assessment shall constitute a final and unappealable order.”

added “(H) Hearing—The insured depository institution or institution-affiliated party against whom any penalty is assessed under this paragraph shall be afforded a hearing before—

added “(i) an agency, if such institution or person submits a request for such hearing within 20 days after the issuance of the notice of assessment; or

added “(ii) the appropriate United States district court, if such institution or person submits a request for such hearing and forum within 20 days after the issuance of the notice of assessment.”

added “(ii) Appropriateness of penalty not reviewable—In any civil action under clause (i), except a civil action tried in a United States district court pursuant to subsection (b)(11)(B), (e)(8)(B), or (i)(2)(H)(ii), the validity and appropriateness of the penalty shall not be subject to review.”

added “(x) Savings clause—Nothing in subsection (b)(11)(B), (e)(8)(B), or (i)(2)(H)(ii) shall be construed to—

added “(1) limit the authority of a Federal banking agency to initiate an administrative enforcement action; or

added “(2) impair the validity of any consent order.”

Section 2 of the Federal Deposit Insurance Act (12 U.S.C. 1812) is amended—

added “(C) 3 of whom shall be appointed by the President, by and with the advice and consent of the Senate, from among individuals who are citizens of the United States, 1 of whom shall have State bank supervisory experience, and separately 1 of whom shall have demonstrated primary experience working in or supervising depository institutions having less than $17,000,000,000 in total assets.”

removed “(B) 4 of whom shall be appointed by the President, by and with the advice and consent of the Senate, from among individuals who are citizens of the United States, 1 of whom shall have State bank supervisory experience, and separately 1 of whom shall have demonstrated primary experience working in or supervising depository institutions having less than $17,000,000,000 in total assets.”

removed “(3) Non-voting status of the Director of the Bureau of Consumer Financial Protection—The Director of the Bureau of Consumer Financial Protection shall serve as a non-voting observer to the Board of Directors of the Corporation.”

“(4) Maximum length of service—Notwithstanding any other provision of this Act, no person shall serve as a member for more than twelve years in total.”

Section 2222 of the Economic Growth and Regulatory Paperwork Reduction Act of 1996 (12 U.S.C. 3311) is amended—

“(1) Solicitation of public comment—In conducting”

“(2) Internal review of cumulative impact—Each Federal financial institutions regulatory agency shall conduct an internal review of the cumulative impact of regulations issued by the Federal financial institutions regulatory agency that—

“(A) assesses the effects of such regulations on consumers’ access to financial products and services;

“(B) assesses the effects of such regulations on the availability of financial products and services to financial and nonfinancial firms;

“(C) assesses the impact of such regulations on credit availability and financial market liquidity in United States financial markets;

“(D) assesses the balance of benefits and costs of such regulations with respect to the safety and soundness of the United States financial system and overall economic activity in the United States;

“(E) to the extent practicable, quantifies the direct and indirect economic costs imposed by such regulations; and

changed “(F) includes recommendations to streamline, simplify, streamline or eliminate duplicative, outdated, and unnecessarily burdensome regulations.”

“(2) a summary of the findings and determinations of each Federal financial institutions regulatory agency of the internal review conducted by the Federal financial institutions regulatory agency under subsection (b)(2); and”

“(f) Federal financial institutions regulatory agency defined—The term Federal financial institutions regulatory agency has the meaning given that term in section 1003 of the Federal Financial Institutions Examination Council Act of 1978 (12 U.S.C. 3302).”

“(7) Annual report

“(A) In general—The Board”

“(B) Interactions with global financial regulatory or supervisory forums—The report required under subparagraph (A) shall include a description of the Board’s interactions with global financial regulatory or supervisory forums, including—

changed “(i) a list description of the financial regulatory or supervisory standard-setting issues under discussion at the global financial regulatory or supervisory forums in which the Board maintained membership during the period covered by the report; andreport;

changed “(ii) for each such a description of the rationale, objectives, and potential effects that rules proposed, rules under consideration, final rules adopted, guidance proposed, guidance under consideration, final guidance adopted, or any other similar actions discussed at the global financial regulatory or supervisory forum in forums could have, including an economic impact analysis on whether the list provided pursuant expected costs would be at least offset by the expected benefits related to clause (i)—economic, national security, financial stability, or other national interests;

changed “(I) “(iii) a description of the general purposes positions taken by representatives of the Board at the global financial regulatory or supervisory forum, including a list of forums during the current members and observers of period covered by the global financial regulatory or supervisory forum;report; and

changed “(II) “(iv) a discussion description of how the general purposes of efforts by the Board to increase transparency at global financial regulatory or supervisory forum align with the purposes of this Act and forums during the other Acts that period covered by the Board implements;report.

removed “(III) an identification of the sources that provided a material amount of funding for the operations of the global financial regulatory or supervisory forum during the period covered by the report;

removed “(IV) a description of the organization the Board maintained during the period covered by the report to conduct interactions with the global financial regulatory or supervisory forum, including an organizational chart and an identification of the official staff of the Board with oversight responsibility for interactions with the global financial regulatory or supervisory forum;

removed “(V) a discussion of the financial regulatory or supervisory standard-setting issues under discussion at the global financial regulatory or supervisory forum during the period covered by the report;

removed “(VI) a description of the positions taken by representatives of the Board at the global financial regulatory or supervisory forum during the period covered by the report, including the rationale, objectives, and potential impacts of such positions;

removed “(VII) a summary of the meetings attended by representatives of the Board at the global financial regulatory or supervisory forum during the period covered by the report, including a discussion of the key outcomes from such meetings;

removed “(VIII) the text of any final policies, standards, or recommendations adopted by the global financial supervisory or regulatory forum during the period covered by the report, including any implementing material, annex, appendix, side letter, or similar document entered into contemporaneously or in conjunction with the underlying policy, standard, or recommendation, or an identification of a publicly available source for the text of such policy, standard, recommendation, or implementing material;

removed “(IX) a description of any amendments to Federal statutes, regulations of the Board, guidance of the Board, or changes to the Board’s supervisory practices the Board anticipates will be necessary to implement any final policies, standards, or recommendations adopted by the global financial supervisory or regulatory forum during the period covered by the report;

removed “(X) a discussion of rules proposed, rules under consideration, final rules adopted, guidance proposed, guidance under consideration, final guidance adopted, or any other similar actions taken by the Board during the period covered by the report to implement agreements of the global financial regulatory or supervisory forum, including an economic impact analysis and a justification for why the expected costs of implementing actions are at least offset by the expected benefits related to economic, national security, financial stability, or other national interests; and

removed “(XI) such other information relating to interactions with the global financial regulatory or supervisory forum during the period covered by the report separately requested in writing by the Committee on Banking, Housing, and Urban Affairs of the Senate or the Committee on Financial Services of the House of Representatives.

“(C) Global financial regulatory or supervisory forum defined

“(i) In general—In this paragraph, the term global financial regulatory or supervisory forum means any association or union of nations through or by which two or more foreign authorities engage in some aspect of their conduct of international affairs regarding financial supervision and regulation, including—

“(I) the Bank for International Settlements;

“(II) the Basel Committee on Banking Supervision;

“(III) the Financial Stability Board;

“(IV) the International Association of Insurance Supervisors; and

“(V) the Network of Central Banks and Supervisors for Greening the Financial System.

“(ii) Exception—The term global financial regulatory or supervisory forum does not include—

“(I) international financial institutions, as defined in section 1701(c)(2) of the International Financial Institutions Act (22 U.S.C. 262r(c)(2)); or

“(II) any international organization with respect to which the Board participates pursuant to a treaty to which the United States is a party.”

“333. Report of Comptroller

“(a) In general—The Comptroller of the Currency shall make an annual report to Congress.

“(b) Interactions with global financial regulatory or supervisory forums—The report required under subsection (a) shall include a description of the Comptroller’s interactions with global financial regulatory or supervisory forums, including—

changed “(1) a list description of the financial regulatory or supervisory standard-setting issues under discussion at the global financial regulatory or supervisory forums in which the Comptroller maintained membership during the period covered by the report; andreport;

changed “(2) for each such a description of the rationale, objectives, and potential effects that rules proposed, rules under consideration, final rules adopted, guidance proposed, guidance under consideration, final guidance adopted, or any other similar actions discussed at the global financial regulatory or supervisory forum in forums could have, including an economic impact analysis on whether the list provided pursuant expected costs would be at least offset by the expected benefits related to paragraph (1)—economic, national security, financial stability, or other national interests; and

changed “(A) “(3) a description of the general purposes positions taken by representatives of the Comptroller at the global financial regulatory or supervisory forum, including a list of forums during the current members and observers of period covered by the global financial regulatory or supervisory forum;report; and

changed “(B) “(4) a discussion description of how the general purposes of efforts by the Comptroller to increase transparency at global financial regulatory or supervisory forum align with the purposes of this chapter, title LXII, and forums during the other Acts that period covered by the Comptroller implements;report.

removed “(C) an identification of the sources that provided a material amount of funding for the operations of the global financial regulatory or supervisory forum during the period covered by the report;

removed “(D) a description of the organization the Comptroller maintained during the period covered by the report to conduct interactions with the global financial regulatory or supervisory forum, including an organizational chart and an identification of the official staff of the Office of the Comptroller of the Currency with oversight responsibility for interactions with the global financial regulatory or supervisory forum;

removed “(E) a discussion of the financial regulatory or supervisory standard-setting issues under discussion at the global financial regulatory or supervisory forum during the period covered by the report;

removed “(F) a description of the positions taken by representatives of the Comptroller at the global financial regulatory or supervisory forum during the period covered by the report, including the rationale, objectives, and potential impacts of such positions;

removed “(G) a summary of the meetings attended by representatives of the Comptroller at the global financial regulatory or supervisory forum during the period covered by the report, including a discussion of the key outcomes from such meetings;

removed “(H) the text of any final policies, standards, or recommendations adopted by the global financial supervisory or regulatory forum during the period covered by the report, including any implementing material, annex, appendix, side letter, or similar document entered into contemporaneously or in conjunction with the underlying policy, standard, or recommendation, or an identification of a publicly available source for the text of such policy, standard, recommendation, or implementing material;

removed “(I) a description of any amendments to Federal statutes, regulations of the Comptroller, guidance of the Comptroller, or changes to the Comptroller’s supervisory practices the Comptroller anticipates will be necessary to implement any final policies, standards, or recommendations adopted by the global financial supervisory or regulatory forum during the period covered by the report;

removed “(J) a discussion of rules proposed, rules under consideration, final rules adopted, guidance proposed, guidance under consideration, final guidance adopted, or any other similar actions taken by the Comptroller during the period covered by the report to implement agreements of the global financial regulatory or supervisory forum, including an economic impact analysis and a justification for why the expected costs of implementing actions are at least offset by the expected benefits related to economic, national security, financial stability, or other national interests; and

removed “(K) such other information relating to interactions with the global financial regulatory or supervisory forum during the period covered by the report separately requested in writing by the Committee on Banking, Housing, and Urban Affairs of the Senate or the Committee on Financial Services of the House of Representatives.

“(c) Global financial regulatory or supervisory forum defined

“(1) In general—In this section, the term global financial regulatory or supervisory forum means any association or union of nations through or by which two or more foreign authorities engage in some aspect of their conduct of international affairs regarding financial supervision and regulation, including—

“(A) the Bank for International Settlements;

“(B) the Basel Committee on Banking Supervision;

“(C) the Financial Stability Board;

“(D) the International Association of Insurance Supervisors; and

“(E) the Network of Central Banks and Supervisors for Greening the Financial System.

“(2) Exception—The term global financial regulatory or supervisory forum does not include—

“(A) international financial institutions, as defined in section 1701(c)(2) of the International Financial Institutions Act (22 U.S.C. 262r(c)(2)); or

“(B) any international organization with respect to which the Comptroller participates pursuant to a treaty to which the United States is a party.”

“(3) Interactions with global financial regulatory or supervisory forums—The report required under paragraph (1) shall include a description of the Corporation’s interactions with global financial regulatory or supervisory forums, including—

changed “(A) a list description of the financial regulatory or supervisory standard-setting issues under discussion at the global financial regulatory or supervisory forums in which the Corporation maintained membership during the period covered by the report; andreport;

changed “(B) for each such a description of the rationale, objectives, and potential effects that rules proposed, rules under consideration, final rules adopted, guidance proposed, guidance under consideration, final guidance adopted, or any other similar actions discussed at the global financial regulatory or supervisory forum in forums could have, including an economic impact analysis on whether the list provided pursuant expected costs would be at least offset by the expected benefits related to subparagraph (A)—economic, national security, financial stability, or other national interests;

changed “(i) “(C) a description of the general purposes positions taken by representatives of the Corporation at the global financial regulatory or supervisory forum, including a list of forums during the current members and observers of period covered by the global financial regulatory or supervisory forum;report; and

changed “(ii) “(D) a discussion description of how the general purposes of efforts by the Corporation to increase transparency at global financial regulatory or supervisory forum align with the purposes of this Act and forums during the other Acts that period covered by the Corporation implements;report.

removed “(iii) an identification of the sources that provided a material amount of funding for the operations of the global financial regulatory or supervisory forum during the period covered by the report;

removed “(iv) a description of the organization the Corporation maintained during the period covered by the report to conduct interactions with the global financial regulatory or supervisory forum, including an organizational chart and an identification of the official staff of the Corporation with oversight responsibility for interactions with the global financial regulatory or supervisory forum;

removed “(v) a discussion of the financial regulatory or supervisory standard-setting issues under discussion at the global financial regulatory or supervisory forum during the period covered by the report;

removed “(vi) a description of the positions taken by representatives of the Corporation at the global financial regulatory or supervisory forum during the period covered by the report, including the rationale, objectives, and potential impacts of such positions;

removed “(vii) a summary of the meetings attended by representatives of the Corporation at the global financial regulatory or supervisory forum during the period covered by the report, including a discussion of the key outcomes from such meetings;

removed “(viii) the text of any final policies, standards, or recommendations adopted by the global financial supervisory or regulatory forum during the period covered by the report, including any implementing material, annex, appendix, side letter, or similar document entered into contemporaneously or in conjunction with the underlying policy, standard, or recommendation, or an identification of a publicly available source for the text of such policy, standard, recommendation, or implementing material;

removed “(ix) a description of any amendments to Federal statutes, regulations of the Corporation, guidance of the Corporation, or changes to the Corporation’s supervisory practices the Corporation anticipates will be necessary to implement any final policies, standards, or recommendations adopted by the global financial supervisory or regulatory forum during the period covered by the report;

removed “(x) a discussion of rules proposed, rules under consideration, final rules adopted, guidance proposed, guidance under consideration, final guidance adopted, or any other similar actions taken by the Corporation during the period covered by the report to implement agreements of the global financial regulatory or supervisory forum, including an economic impact analysis and a justification for why the expected costs of implementing actions are at least offset by the expected benefits related to economic, national security, financial stability, or other national interests; and

removed “(xi) such other information relating to interactions with the global financial regulatory or supervisory forum during the period covered by the report separately requested in writing by the Committee on Banking, Housing, and Urban Affairs of the Senate or the Committee on Financial Services of the House of Representatives.

“(4) Global financial regulatory or supervisory forum defined

“(A) In general—In this subsection, the term global financial regulatory or supervisory forum means any association or union of nations through or by which two or more foreign authorities engage in some aspect of their conduct of international affairs regarding financial supervision and regulation, including—

“(i) the Bank for International Settlements;

“(ii) the Basel Committee on Banking Supervision;

“(iii) the Financial Stability Board;

“(iv) the International Association of Insurance Supervisors; and

“(v) the Network of Central Banks and Supervisors for Greening the Financial System.

“(B) Exception—The term global financial regulatory or supervisory forum does not include—

“(i) international financial institutions, as defined in section 1701(c)(2) of the International Financial Institutions Act (22 U.S.C. 262r(c)(2)); or

“(ii) any international organization with respect to which the Corporation participates pursuant to a treaty to which the United States is a party.”

“(1) In general—The sum of the following amounts of reciprocal deposits of an agent institution shall not be considered to be funds obtained, directly or indirectly, by or through a deposit broker:

“(A) An amount equal to 50 percent of the portion of the total liabilities of the agent institution that is less than or equal to $1,000,000,000.

“(B) An amount equal to 40 percent of the portion, if any, of the total liabilities of the agent institution that is greater than $1,000,000,000, but less than or equal to $10,000,000,000.

“(C) An amount equal to 30 percent of the portion, if any, of the total liabilities of the agent institution that is greater than $10,000,000,000, but less than or equal to $250,000,000,000.”

“(I) when most recently examined under section 10(d) was assigned a CAMELS rating of 1, 2, or 3 under the Uniform Financial Institutions Rating System (or an equivalent rating under a comparable rating system); and”

added “(ii) has not yet been examined under section 10(d) and the deposits of which first became insured under this Act during the current calendar year or during the immediately preceding calendar year;”

added “(3) Reservation of authority—If an insured depository institution ceases to be an agent institution because it no longer satisfies any of the criteria in paragraph (2)(A), the Corporation may, on a case-by-case basis and upon application, provide a waiver to permit the institution to continue to consider some or all of the deposits previously subject to the exception under paragraph (1) as continuing to be subject to the exception under paragraph (1), for a specific or indefinite period of time, if the Corporation determines that failure to grant such a waiver would negatively impact the safety and soundness of the insured depository institution.”

“(j) Limited exception for custodial deposits

“(1) In general—Custodial deposits of an eligible institution shall not be considered to be funds obtained, directly or indirectly, by or through a deposit broker to the extent that the total amount of such custodial deposits does not exceed an amount equal to 20 percent of the total liabilities of the eligible institution.

changed “(2) Definitions—In this subsection:Reservation of authority—If an insured depository institution ceases to be an eligible institution because it no longer satisfies any of the criteria in paragraph (3)(B), the Corporation may, on a case-by-case basis and upon application, provide a waiver to permit the institution to continue to be treated as an eligible institution for purposes of paragraph (1), for a specific or indefinite period of time, if the Corporation determines that failure to grant such a waiver would negatively impact the safety and soundness of the insured depository institution.

added “(3) Definitions—In this subsection:

“(A) Custodial deposit—The term custodial deposit means a deposit that is not deposited at an insured depository institution in return for fees paid by the insured depository institution pursuant to an agreement with a third party and that would otherwise be considered to be obtained, directly or indirectly, by or through a deposit broker, if the deposit is deposited at 1 or more insured depository institutions, for the purpose of providing or maintaining deposit insurance for the benefit of a third party, by or through any of the following, each acting in a formal custodial or fiduciary capacity for the benefit of a third party:

“(i) An insured depository institution serving as agent, trustee, or custodian.

“(ii) A trust entity controlled by an insured depository institution serving as agent, trustee, or custodian.

“(iii) A State-chartered trust company serving as agent, trustee, or custodian.

“(iv) A plan administrator or investment advisor, acting in a formal custodial or fiduciary capacity for the benefit of a plan.

“(B) Eligible institution—The term eligible institution means an insured depository institution that accepts custodial deposits, if the insured depository institution has less than $10,000,000,000 in total assets as reported on the consolidated report of condition and income as reported quarterly to the appropriate Federal banking agency and—

“(i)

“(I) when most recently examined under section 10(d) was assigned a composite rating of 1, 2, or 3 under the Uniform Financial Institutions Rating System (or an equivalent rating under a comparable rating system); and

removed “(II) is well capitalized; or

changed “(ii) has obtained a waiver pursuant to subsection (c).“(II) is well capitalized;

added “(ii) has not yet been examined under section 10(d) and the deposits of which first became insured under this Act during the current calendar year or during the immediately preceding calendar year; or

added “(iii) has obtained a waiver pursuant to subsection (c).

“(C) Plan—The term plan has the meaning given the term in section 3 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1002).

“(D) Plan administrator—The term plan administrator has the meaning given the term administrator in section 3 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1002).

“(E) Well capitalized—The term well capitalized has the meaning given the term in section 38(b).”

“(k) Restriction on interest rate paid on certain custodial deposits

“(1) Definitions—In this subsection—

“(A) the terms custodial deposit, eligible institution, and well capitalized have the meanings given those terms in subsection (j); and

“(B) the term covered insured depository institution means an insured depository institution that while acting as an eligible institution under subsection (j), accepts custodial deposits while not well capitalized.

“(2) Prohibition—A covered insured depository institution may not pay a rate of interest on custodial deposits that are accepted while not well capitalized that, at the time the funds or custodial deposits are accepted, significantly exceeds the limit set forth in paragraph (3).

“(3) Limit on interest rates—The limit on the rate of interest referred to in paragraph (2) shall be not greater than—

“(A) the rate paid on deposits of similar maturity in the normal market area of the covered insured depository institution for deposits accepted in the normal market area of the covered insured depository institution; or

“(B) the national rate paid on deposits of comparable maturity, as established by the Corporation, for deposits accepted outside the normal market area of the covered insured depository institution.”

“(iii) the proposed merger transaction would result in an entity with less than $10,000,000,000 in assets.”

“(16) For merger transactions resulting in institutions with less than $10,000,000,000 in assets

“(A) In general—Notwithstanding paragraph (5), if a proposed merger transaction would result in an institution with less than $10,000,000,000 in assets, then the responsible agency shall not consider whether such merger transaction would—

“(i) result in a monopoly, or would be in furtherance of any combination or conspiracy to monopolize or to attempt to monopolize the business of banking in any part of the United States; and

“(ii) have the effect in any section of the country of substantially lessening competition, tending to create a monopoly, or in any other manner restraining trade.

“(B) Threshold adjustment

“(i) In general—At the end of each year for which the nominal gross domestic product of the United States increases (a “covered year”), the Corporation shall adjust the dollar figures described in subparagraph (A) and paragraph (4)(C)(iii) by a percentage equal to the percentage increase (if any) between—

“(I) the nominal gross domestic product of the United States for the year, during the preceding 5 years, with respect to which the nominal gross domestic product of the United States was the highest; and

“(II) the nominal gross domestic product of the United States for the covered year.

“(ii) Determination of GDP—In this paragraph, the Corporation shall use nominal gross domestic product statistics determined by the Bureau of Economic Analysis.”

“(8) For proposed transactions resulting in companies with less than $10,000,000,000 in assets

“(A) In general—Notwithstanding paragraph (1), if a proposed acquisition, merger, or consolidation under this section would result in a company with less than $10,000,000,000 in assets, then the Board shall not consider whether such acquisition, merger, or consolidation would—

“(i) result in a monopoly, or would be in furtherance of any combination or conspiracy to monopolize or to attempt to monopolize the business of banking in any part of the United States; and

“(ii) have the effect in any section of the country of substantially lessening competition, tending to create a monopoly, or in any other manner restraining trade.

“(B) Threshold adjustment

“(i) In general—At the end of each year for which the nominal gross domestic product of the United States increases (a “covered year”), the Board shall adjust the dollar figure described in subparagraph (A) by a percentage equal to the percentage increase (if any) between—

“(I) the nominal gross domestic product of the United States for the year, during the preceding 5 years, with respect to which the nominal gross domestic product of the United States was the highest; and

“(II) the nominal gross domestic product of the United States for the covered year.

“(ii) Determination of GDP—In this paragraph, the Board shall use nominal gross domestic product statistics determined by the Bureau of Economic Analysis.”

“(10) For proposed transactions resulting in companies with less than $10,000,000,000 in assets

“(A) In general—Notwithstanding subparagraphs (A) and (B) of paragraph (2), if a proposed transaction under this section would result in a company with less than $10,000,000,000 in assets, then the Board shall not consider whether the transaction would—

“(i) result in a monopoly, or would be in furtherance of any combination or conspiracy to monopolize or to attempt to monopolize the savings and loan business in any part of the United States; and

“(ii) have the effect in any section of the country of substantially lessening competition, tending to create a monopoly, or in any other manner restraining trade.

“(B) Threshold adjustment

“(i) In general—At the end of each year for which the nominal gross domestic product of the United States increases (a “covered year”), the Board shall adjust the dollar figure described in subparagraph (A) by a percentage equal to the percentage increase (if any) between—

“(I) the nominal gross domestic product of the United States for the year, during the preceding 5 years, with respect to which the nominal gross domestic product of the United States was the highest; and

“(II) the nominal gross domestic product of the United States for the covered year.

“(ii) Determination of GDP—In this paragraph, the Board shall use nominal gross domestic product statistics determined by the Bureau of Economic Analysis.”