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Full Text of this Amendment

SA 416. Mr. VITTER submitted an amendment intended to be proposed by him to the bill S. 782, to amend the Public Works and Economic Development Act of 1965 to reauthorize that Act, and for other purposes; which was ordered to lie on the table; as follows:

At the end, add the following:
SEC. 22. STABILITY OVERSIGHT COUNCIL AUTHORITY.
(a) Repeal of Enhanced Supervision Authority.--The Financial Stability Act of 2010 (15 U.S.C. 5311 et seq.) is amended by striking sections 113 (12 U.S.C. 5323), 114 (12 U.S.C. 5324), 115 (12 U.S.C. 5325), and 165 (12 U.S.C. 5365).
(b) Conforming Amendments to the Dodd-Frank Wall Street Reform and Consumer Protection Act.--The Dodd-Frank Wall Street Reform and Consumer Protection Act (Public Law 111-203) is amended--
(1) in section 2 (12 U.S.C. 5301), by striking paragraph (13);
(2) in section 102 (12 U.S.C. 5311)
(A) in subsection (a)(4), by striking subparagraph (D); and
(B) in subsection (c), by striking "(other than section 113(b))";
(3) in section 112(a)(2) (12 U.S.C. 5322(a)(2))--
(A) in subparagraph (H), by striking ", or because of their activities pursuant to section 113"; and
(B) in subparagraph (N)(iv), by striking "section 113 or";
(4) in section 117 (12 U.S.C. 5327)--
(A) in subsection (b), by striking ", as if the Council had made a determination under section 113 with respect to that entity"; and
(B) in subsection (c), by striking "whether the company meets the standards under section 113(a) or 113(b), as applicable, and";
(5) in section 120(a) (12 U.S.C. 5330(a)), by striking ", including standards enumerated in section 115,";
(6) in section 121--
(A) by striking subsection (c); and
(B) by redesignating subsection (d) as subsection (c);
(7) in section 155(d) (12 U.S.C. 5345(d)), by striking "based on the considerations for establishing the prudential standards under section 115,";
(8) in section 166 (12 U.S.C. 5366), by striking "or a bank holding company described in section 165(a)" each place that term appears;
(9) in section 170 (12 U.S.C. 5370)--
(A) by striking subsection (b); and
(B) by redesignating subsections (c) through (e) as subsections (b) through (d), respectively;
(10) in section 211(f) (12 U.S.C. 5391(f)), by striking " or the Board of Governors under section 165"; and
(11) in section 716(i) (15 U.S.C. 8305(i)), by striking "as regulated under section 113" each place that term appears.
(c) Conforming Amendments to the Federal Reserve Act.--Section 11(s)(2)(B) of the Federal Reserve Act (12 U.S.C. 248(s)(2)(B)), as added by section 318 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, is amended by striking "; and" and all that follows through the end of subparagraph (C) and inserting a period.
(d) Conforming Amendments to the Federal Deposit Insurance Act.--Section 10(b)(3) of the Federal Deposit Insurance Act (12 U.S.C. 1820(b)(3)) is amended--
(1) by striking "or a bank holding company described in section 165(a) of the Financial Stability Act of 2010" each place that term appears; and
(2) by striking "in accordance with section 165(d) of that Act".
SEC. 23. REESTABLISHING THE FEDERAL RESERVE LENDER OF LAST RESORT FUNCTION.
(a) Rulemaking Required.--Notwithstanding any other provision of law, the Board of Governors of the Federal Reserve System (in this Act referred to as the "Board"), in consultation with the Secretary of the Treasury (in this Act referred to as the "Secretary"), shall, not later than 12 months after the date of enactment of this Act, issue rules that shall govern the creation of any emergency stabilization actions by the Board.
(b) Requirements.--At a minimum, rules required under this Act shall, with respect to emergency stabilization actions described in subsection (a), including with respect to debt guarantee actions by and lender of last resort functions of the Board, and any action of the Board under section 13(3) of the Federal Reserve Act (other than discount window lending)--
(1) prescribe under what circumstances the program may and may not be used in the future;
(2) prescribe how the program shall ensure that it will only be used by solvent companies and will not be used to prevent failure of otherwise failing firms;
(3) prohibit the use of equity as collateral, and determine what type of collateral the Board will accept against emergency lending to ensure that all lending is done against collateral adequate to prevent the Federal Reserve System from incurring losses on the loan;
(4) establish how the Board of Governors and the Secretary shall ensure that the program does not allocate credit involving significant amounts of funding to specific segments of the financial system through decisions based on criteria other than the values of collateral posted or artificially prop up certain segments of the economy;
(5) establish procedures by which the Board would promulgate initial rules, and modify and amend such rules, to ensure a proper notice and comment period, including publicly documenting the need for the rule change; and
(6) include any other factors that the Board, in consultation with the Secretary, deems appropriate.
SEC. 24. DISCLOSURES OF USE OF EMERGENCY LENDING AUTHORITY.
The Board shall promptly, not later than 1 year after the date of any determination by the Board on whether to exercise its emergency lending authority, including with respect to debt guarantee actions by and lender of last resort functions of the Board, and any action of the Board under section 13(3) of the Federal Reserve Act (other than discount window lending), make available to the public on its website, information on each such exercise of the
emergency lending authority of the Board, including--
(1) all terms of the loan;
(2) collateral pledged;
(3) the method of valuation of collateral;
(4) repayment information;
(5) such other information as is relevant to the program;
(6) the identity of all of the companies that were granted a loan; and
(7) the identity of all companies that were denied a loan and the reasons for such denial.


(As printed in the Congressional Record for the Senate on Jun 8, 2011.)