,i  #aacth ,,congress  #ast ,session    
,h4 ,r4 #fac  ,,in ,,the ,,house ,,of   
,,representatives  ,february #ab1 #bjac 
,mr4 ,campbell introduced the following 
bill2 which was referred to the         
,committee on ,financial ,services  ,a  
,,bill  ,to establish a market-based    
trigger to determine the capital        
adequacy of bank holding companies and  
decrease systemic risk1 and for other   
purposes4  #a4 ,short title ,this ,act  
may be cited as the ,systemic ,risk     
,mitigation ,act4  #b4 ,definitions ,in 
this ,act3  7#a7 ,average daily closing 
price  7,a7 ,in general ,the term       
average daily closing price means the   
average daily closing price of a credit 
default swap on long-term subordinated  
debt of a bank holding company during a 
#cj-;day period4  7,b7 ,regulations ,the
 ,board1 through regulations1 shall     
develop a method to determine the daily 
closing price of a credit default swap  
on long-term subordinated debt of a bank
 holding company and shall calculate the

 average daily closing price            
accordingly4  7#b7 ,bank holding company
 ,the term bank holding company has the 
same meaning given such term in section 
#b of the ,bank ,holding ,company ,act  
of #aief 7#ab ,u4,s4,c4 #ahda71 but     
shall only include such companies with  
total consolidated assets greater than  
or equal to #ej1jjj1jjj1jjj4  7#c7      
,board ,the term ,board means the ,board
 of ,governors of the ,federal ,reserve 
,system4  7#d7 ,credit default swap ,the
 term credit default swap has the same  
meaning given the term swap agreement in
 section #bjf;,a of the                 
,gramm-,leach-,bliley ,act 7#ae         
,u4,s4,c4 #gh;c nt74  7#e7 ,long-term   
subordinated debt ,the term long-term   
subordinated debt means unsecured bonds 
or other debt instruments issued by a   
bank holding company that--  7,a7 is    
subordinated to the claims of depositors
 or general creditors2 and  7,b7 has a  
maturity date not less than #e years4   
7#f7 ,stress test  7,a7 ,in general ,the

 term stress test means an evaluation   
designed by the ,board to determine     
whether a bank holding company--  7i7   
has the capital1 on a total consolidated
 basis1 necessary to absorb losses as a 
result of adverse economic conditions2  
and  7ii7 is sufficiently capitalized to
 meet systemically important            
obligations4  7,b7 ,regulations ,the    
term systemically important obligation  
shall be defined in regulations         
prescribed by the ,board4  7#g7 ,tier #a
 capital ,the term tier #a capital has  
the same meaning given in part #bbe of  
title #ab1 ,code of ,federal            
,regulations1 as in effect on the date  
of enactment of this ,act1 or any       
successor thereto4  #c4 ,market-based   
trigger to determine adequacy of capital
  7a7 ,market-,based trigger  7#a7      
,greater than #ej basis points  7,a7 ,in
 general ,in the case that the average  
daily closing price exceeds #ej basis   
points--  7i7 the ,board shall notify   
the bank holding company that it needs  

to raise additional tier #a capital in  
order to reduce such closing price below
 #ej basis points2  7ii7 not later than 
#ad days 7or less if the ,board makes a 
determination that conditions warrant a 
shorter period of time7 after such      
notification under clause 7i71 such     
company shall submit to the ,board an   
action plan detailing how the company   
intends on remediating its capital      
deficiency2  7iii7 such company has #cj 
days to implement the plan submitted    
under clause 7ii7 after such plan is    
approved by the ,board2 and  7iv7 if    
after the end of the #cj-;day period    
described in clause 7iii7 the average   
daily closing price exceeds #ej basis   
points1 the ,board and such company     
shall repeat clause 7i7 through 7iii7   
until such closing price is less than or
 equal to #ej basis points4  7,b7       
,appeal  7i7 ,in general ,a bank holding
 company may appeal the findings of the 
,board under subparagraph 7,a7 and      
request that the ,board conduct a stress

 test4  7ii7 ,tolling ,an appeal made   
pursuant to clause 7i7 shall toll any   
deadline specified under subparagraph   
7,a7 until the conclusion of the appeals
 process4  7iii7 ,capital deficiency ,if
 the ,board determines1 after conducting
 a stress test pursuant to clause 7i71  
that the bank holding company has a     
capital deficiency1 the ,board and the  
bank holding company shall repeat clause
 7i7 through 7iii7 of subparagraph 7,a7 
in accordance with clause 7iv7 of such  
subparagraph4  7#b7 ,greater than #ge   
basis points ,in the case that the      
average daily closing price exceeds #ge 
basis points--  7,a7 the ,board shall   
notify the bank holding company in      
accordance with clause 7i7 of paragraph 
7#a77;,a72  7,b7 such company shall     
submit and implement an action plan in  
accordance with clause 7ii7 and 7iii7 of
 paragraph 7#a77;,a72  7,c7 the ,board  
may suspend or limit dividends paid by  
the bank holding company until such     
company's average daily closing price is

 less than or equal to #ej basis points2
  7,d7 the ,board shall notify the      
company that it will be placed into     
receivership in accordance with         
paragraph 7#c7 if the average daily     
closing price exceeds #ajj basis points2
  7,e7 the ,board shall conduct a stress
 test2 and  7,f7 if the ,board          
determines1 after conducting a stress   
test pursuant to subparagraph 7,e71 that
 such company has a capital deficiency1 
not later than #ad days 7or less if the 
,board makes a determination that       
conditions warrant a shorter period of  
time7 after such stress test is         
completed1 such company shall submit and
 implement an action plan in accordance 
with clause 7ii7 and 7iii7 of paragraph 
7#a77;,a74  7#c7 ,greater than #ajj     
basis points ,in the case that the      
average daily closing price exceeds #ajj
 basis points1 the ,board shall place   
the company into receivership in        
accordance with the orderly liquidation 
authority provided under title ,,ii of  

the ,dodd-,frank ,wall ,street ,reform  
and ,consumer ,protection ,act 7#ab     
,u4,s4,c4 #echa et seq474  7b7 ,failure 
,to submit action plan ,a failure by a  
bank holding company to submit an action
 plan pursuant to subsection 7a7 within 
the time period required under such     
subsection shall result in the ,board   
placing such company into receivership  
as described in subsection 7a77#c74  7c7
 ,limitation on claims for holders of   
long-,term subordinated debt ,any entity
 that is a holder of long-term          
subordinated debt of a bank holding     
company that has been placed into       
receivership pursuant to this section   
shall receive the lesser of--  7#a7 #hj 
percent of the face value of such debt2 
or  7#b7 the residual value of such     
company after all other claims of other 
creditors have been satisfied4  7d7     
,subordinated debt requirement  7#a7 ,in
 general ,the ,board shall require each 
bank holding company to issue and       
maintain long-term subordinated debt in 

an amount greater than or equal to #ae  
percent of the total consolidated assets
 of such company4  7#b7 ,deadline ,a    
bank holding company shall meet the     
requirement set forth in paragraph 7#a7 
no later than the effective date of this
 section4  7#c7 ,failure to meet        
requirement ,if a bank holding company  
fails to meet the requirement set forth 
in paragraph 7#a71 such company shall   
submit a plan to the ,board describing  
the steps the company will take to meet 
such requirement4  7e7 ,effective date  
,this section shall take effect #b years
 after the date of the enactment of this
 ,act4  #d4 ,repeal  7a7 ,prohibitions  
on proprietary trading ,section #ac of  
the ,bank ,holding ,company ,act of     
#aief 7#ab ,u4,s4,c4 #ahea7 is repealed4
  7b7 ,enhanced ,prudential ,standards  
,section #afe of the ,dodd-,frank ,wall 
,street ,reform and ,consumer           
,protection ,act 7#ab ,u4,s4,c4 #ecfe7  
is repealed4