Sec. 2. Leverage and risk-based capital requirements
393 words·~2 min read·
/bill/113/hr/2140/ih/section-2A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Subsection
(b)of section 171 of the Dodd-Frank Wall Street Reform and Consumer Protection Act ( 12 U.S.C. 5371(b) ) is amended— by redesignating paragraphs (3), (4), (5), (6), and
(7)as paragraphs (4), (5), (6), (7), and (8), respectively; and by inserting after paragraph
(2)the following new paragraph: The minimum leverage capital requirements and the minimum risk-based capital requirements established under paragraphs
(1)and
(2)shall, for depository institution holding companies and nonbank financial companies supervised by the Board of Governors that is an insurance company, or that has one or more subsidiaries that are insurance companies— with respect to the insurance company, adhere to the regulatory accounting practices and procedures applicable to, and the capital structure of, such companies; and with respect to the insurance company, utilize the governing State law capital requirements for insurance companies. Any insurance company, insurance affiliate, or insurance subsidiary in compliance with applicable risk-based capital standards established under State law shall be presumed to satisfy any minimum capital requirements of this section. The Board of Governors may, on a case-by-case basis on the record, determine that the presumption in clause
(i)should not apply, provided that the Board first establishes through rulemaking the general procedures and standards to be utilized for such proceedings. Where the Board of Governors makes a determination under clause
(ii)that the presumption should not apply to a company, the requirements of subparagraphs (A), (C), and
(D)remain applicable in establishing capital rules for such company. No requirements under paragraph
(1)and
(2)for a company described under subparagraph
(A)shall apply unless the Board— carries out a cost-benefit analysis of the application of those requirements specific to a company described under subparagraph (A), including soliciting and reviewing public comment of the analysis prior to any final rulemaking, and the Board of Governors determines that the benefits of applying the requirements outweigh the cost; and carries out a quantitative impact study of the application of those requirements specific to a company described under subparagraph (A), including soliciting and reviewing public comment of the study prior to any final rulemaking, and only apply the requirements if the Board of Governors determines that the study shows the requirements are appropriate. Any rulemaking implementing paragraphs
(1)and
(2)shall separately incorporate and reflect the requirements provided for under subparagraphs (A), (B), and (C). .
Connectionstraces to 1
Traces to 1 document
Citation graph
cites case law
Sec. 2
Leverage and risk-based capital requirements
Cites 1Cited by 0 across 0 sources