Financial Stability Oversight Council Improvement Act of 2019

II 116TH CONGRESS 1ST SESSION S. 603 To amend the Financial Stability Act of 2010 to require the Financial Stability Oversight Council to consider alternative approaches before de- termining that a U.S. nonbank financial company shall be supervised by the Board of Governors of the Federal Reserve System, and for other purposes. IN THE SENATE OF THE UNITED STATES FEBRUARY 28, 2019 Mr. ROUNDS (for himself, Mr. JONES, Mr. TILLIS, and Ms. SINEMA) intro- duced the following bill; which was read twice and referred to the Com- mittee on Banking, Housing, and Urban Affairs A BILL To amend the Financial Stability Act of 2010 to require the Financial Stability Oversight Council to consider al- ternative approaches before determining that a U.S. nonbank financial company shall be supervised by the Board of Governors of the Federal Reserve System, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Financial Stability 4 Oversight Council Improvement Act of 2019’’. 5 VerDate Sep 11 2014 00:16 Mar 07, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S603.IS S603 kjohnson on DSK79L0C42 with BILLS 2 •S 603 IS SEC. 2. FINANCIAL STABILITY OVERSIGHT COUNCIL. 1 Section 113 of the Financial Stability Act of 2010 2 (12 U.S.C. 5323) is amended— 3 (1) in subsection (a)— 4 (A) in paragraph (1), by striking ‘‘The 5 Council’’ and inserting ‘‘Subject to paragraph 6 (3), the Council’’; and 7 (B) by adding at the end the following: 8 ‘‘(3) INITIAL DETERMINATION.—The Council 9 may not vote on a proposed determination with re- 10 spect to a U.S. nonbank financial company under 11 paragraph (1) unless the Council first determines, in 12 consultation with the company and the primary fi- 13 nancial regulatory agency with respect to the com- 14 pany, that a different action by the Council or the 15 agency (including the application of new or height- 16 ened standards and safeguards under section 120), 17 or by the company under a written plan that is sub- 18 mitted promptly to the Council, is impracticable or 19 insufficient to mitigate the threat that the company 20 could pose to the financial stability of the United 21 States.’’; and 22 (2) in subsection (f)(1), by striking ‘‘subsection 23 (e)’’ and inserting ‘‘subsections (a)(3) and (e)’’. 24 Æ VerDate Sep 11 2014 00:16 Mar 07, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6301 E:\BILLS\S603.IS S603 kjohnson on DSK79L0C42 with BILLS