,,ii #aac? ,,congress #a/ ,session ,s4 #gih ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,april #bd1 #bjac ,mr4 ,br[n 7= himself1 ,mr4 ,vitt]1 ,mr4 ,kirk1 & ,mr4 ,sessions7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ,a ,,bill ,to address equity capital requirem5ts = f9ancial in/itutions1 bank hold+ companies1 subsidi>ies1 & affiliates1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,t]m9at+ ,bail\ts = ,taxpay] ,fairness ,act ( #bjac or ! ,,tbtf ,act4 #b4 ,def9itions 7a7 ,9 g5]al ,z us$ 9 ?is ,act-- 7#a7 ! t]ms affiliate1 appropriate ,f$]al bank+ ag5cy1 ,f$]al bank+ ag5cy1 =eign bank1 & insur$ depository in/itution h ! same mean+s z 9 section #c ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac72 7#b7 ! t]ms bank hold+ company & subsidi>y h ! same mean+s z 9 section #b ( ! ,bank ,hold+ ,company ,act ( #aief 7#ab ,u4,s4,c4 #ahda72 7#c7 ! t]m ,bo>d means ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em2 7#d7 ! t]m ,corporation means ! ,f$]al ,deposit ,insurance ,corporation2 7#e7 ! t]m f9ancial in/itution means an insur$ depository in/itution1 bank hold+ company1 a sav+s & loan hold+ company1 & a =eign bank subject to ! ,bank ,hold+ ,company ,act ( #aief2 7#f7 ! t]m nonbank f9ancial company has ! same mean+ z 9 ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act 7#ab ,u4,s4,c4 #ecaa72 & 7#g7 ! t]m sav+s & loan hold+ company has ! same mean+ z 9 section #aj ( ! ,home ,own]s' ,loan ,act 7#aj ,u4,s4,c4 #adfg;a71 except t su* t]m does n include any sav+s & loan hold+ company describ$ 9 section #aj7;c77#i77;,c7 ( ! ,home ,own]s' ,loan ,act 7#ab ,u4,s4,c4 #adfg;a7c77#i77;,c774 #c4 ,equity capital requirem5ts 7a7 ,equity capital requirem5ts = bank hold+ companies1 subsidi>ies1 & affiliates 7#a7 ,equity capital requirem5ts 7,a7 ,9 g5]al ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 ! appropriate ,f$]al bank+ ag5cy1 9 consultation ) ! o!r ,f$]al bank+ ag5cies1 %all1 by rule1 e/abli% capital requirem5ts = ! ratio ( equity capital to total consolidat$ assets = all f9ancial in/itutions4 7,b7 ,limitations 7i7 ,9 g5]al ,9 no case may ! requirem5ts issu$ "u ?is subsection require any f9ancial in/itution ) m ?an #ej1jjj1jjj1jjj 9 total consolidat$ assets to h a ratio ( less ?an #h p]c5t ( equity capital to total consolidat$ assets4 7ii7 ,comp>ability ,! equity capital requirem5t issu$ "u ?is subsection = any f9ancial in/itution ) #ej1jjj1jjj1jjj or less 9 total consolidat$ assets %all be comp>able to ! requirem5ts e/abli%$ by ! appropriate ,f$]al bank+ ag5cies "u ! prompt corrective actions regulations implem5t+ section #ch ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahcao7 & "u ! capital adequacy regulations implem5t+ section #e ( ! ,bank ,hold+ ,company ,act ( #aief 7#ab ,u4,s4,c4 #ahdd71 t 7 9 effect z ( ,may #a1 #bjac4 7#b7 ,capital sur*>ge = ! l>ge/ f9ancial in/itutions 7,a7 ,/udy requir$ 7i7 ,9 g5]al ,! ,corporation %all /udy hi/orical equity capital ratios *os5 by l>ge depository in/itutions be=e ! adv5t ( ! ,f$]al ,res]ve ,sy/em1 ,f$]al deposit insurance1 & ! ,f$]al income tax enc\rag$ depositories to favor m highly lev]ag$ deposit & debt fund+4 7ii7 ,report to ,congress ,n lat] ?an #ij days aft] ! date ( enactm5t ( ?is ,act1 ! ,corporation %all issue a report to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate & ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives reg>d+ ! /udy conduct$ "u clause 7i74 7iii7 ,incorporation ( f9d+s ,! ,corporation1 9 consultation ) ! o!r ,f$]al bank+ ag5cies1 %all /ructure ! capital sur*>ge = f9ancial in/itutions ) at lea/ #ejj1jjj1jjj1jjj 9 total consolidat$ assets1 su* t ! sur*>ge fully acc\nts = & (fsets any di/ortion ( capital levels by ! ,gov]nm5t policies describ$ 9 clause 7i74 7,b7 ,rules ,n lat] ?an #a ye> aft] ! date ( completion ( ! /udy requir$ by subp>agraph 7,a71 ! appropriate ,f$]al bank+ ag5cy1 9 consultation ) ! o!r ,f$]al bank+ ag5cies1 %all1 by rule1 e/abli% equity capital sur*>ges = ea* f9ancial in/itution hav+ at lea/ #ejj1jjj1jjj1jjj 9 total consolidat$ assets4 7,c7 ,increases au?oriz$ ,capital requirem5ts e/abli%$ "u ?is p>agraph may increase cont9u\sly z a p]c5tage ( total consolidat$ assets z ! total consolidat$ assets ( a f9ancial in/itution increase4 7,d7 ,requir$ am\nt ,! sur*>ge impos$ "u ! rules issu$ "u ?is p>agraph %all require any f9ancial in/itution hav+ at lea/ #ejj1jjj1jjj1jjj 9 total consolidat$ assets to h a ratio ( n less ?an #ae p]c5t ( equity capital to total consolidat$ assets4 7,e7 ,anti-evasion 7i7 ,9 g5]al ,any attempt by a f9ancial in/itution to /ructure any activity1 transaction1 or affiliation = ! purpose or effect ( evad+ or attempt+ to evade ! asset ?re%old t gives rise to ! sur*>ge provid$ 9 subp>agraph 7,a7 %all be consid]$ a violation ( ! ,f$]al ,deposit ,insurance ,act1 section #bd ( ! ,revis$ ,/atutes ( ! ,unit$ ,/ates1 & ! ,bank ,hold+ ,company ,act ( #aief1 z applicable to su* f9ancial in/itution4 7ii7 ,re/rict+ activities ,not)/&+ any o!r provision ( law1 if ! ,bo>d1 ! ,corporation1 or ! ,comptroll] ( ! ,curr5cy has reasonable cause to believe t a f9ancial in/itution or any affiliate !re( has engag$ 9 an activity1 transaction1 or affiliation 9 a mann] t functions z an evasion ( ! asset ?re%old t gives rise to ! sur*>ge provid$ 9 subp>agraph 7,a7 or o!rwise violates su* provision1 ! appropriate ,f$]al bank+ ag5cy %all ord]1 aft] due notice & opportunity = he>+1 ! f9ancial in/itution to re/rict1 re/ructure1 or dive/ ! (f5d+ activities1 transactions1 or inve/m5ts4 7#c7 ,effective date ,! equity capital & sur*>ge rules issu$ "u p>agraphs 7#a7 & 7#b7 %all apply ) respect to ea* f9ancial in/itution n lat] ?an #e ye>s aft] ! date on :i* f9al rules are publi%$ 9 ! ,f$]al ,regi/] ) respect to t f9ancial in/itution4 7#d7 ,well-capitaliz$ /atus 7,a7 ,compliance ) o!r provisions ,any f9ancial in/itution t meets ! equity capital requirem5ts e/abli%$ "u p>agraph 7#a7 or sur*>ge requirem5ts e/abli%$ "u p>agraph 7#b7 %all be consid]$ well capitaliz$ = purposes (-- 7i7 section #ch ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahcao72 & 7ii7 ! e>ly rem$iation requirem5ts e/abli%$ pursuant to section #aff ( ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act 7#ab ,u4,s4,c4 #ecff74 7,b7 ,ag5cy actions ,consi/5t ) ?is section1 ! appropriate ,f$]al bank+ ag5cy1 9 consultation ) ! o!r ,f$]al bank+ ag5cies1 %all1 by regulation1 e/abli% ! appropriate capital categories = f9ancial in/itutions "u section #ch ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahcao7 & e>ly rem$iation requirem5ts e/abli%$ pursuant to section #aff ( ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act 7#ab ,u4,s4,c4 #ecff74 7#e7 ,enhanc$ prud5tial /&>ds ,! equity capital & sur*>ge rules issu$ "u p>agraphs 7#a7 & 7#b7 %all be consid]$ suffici5t to satisfy ! risk-bas$ capital requirem5ts & lev]age limits = purposes ( section #afe ( ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act 7#ab ,u4,s4,c4 #ecfe74 7b7 ,equity capital requirem5ts = affiliates & subsidi>ies ( bank hold+ companies 7#a7 ,9 g5]al ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 not)/&+ any o!r provision ( law applicable to insur$ depository in/itutions1 ! ,bo>d 7subject to section #e7;c77#c7 ( ! ,bank ,hold+ ,company ,act ( #aief 7#ab ,u4,s4,c4 #ahdd7;c77#c77 & section #aj7;g7 ( ! ,home ,own]s' ,loan ,act 7#ab ,u4,s4,c4 #adfg;a7g7771 ! ,corporation1 & ! ,comptroll] ( ! ,curr5cy %all ea* promulgate regulations to e/abli% capital requirem5ts = ea* affiliate & subsidi>y ( a f9ancial in/itution t are no less /r+5t ?an ! equity capital requirem5ts e/abli%$ "u subsection 7a77#a7 or sur*>ge requirem5ts e/abli%$ "u subsection 7a77#b74 7#b7 ,limitation ,p>agraph 7#a7 & ! regulations issu$ "u p>agraph 7#a7 d n apply 9 ! case ( any f9ancial in/itution ) less ?an #ej1jjj1jjj1jjj 9 total consolidat$ assets4 7#c7 ,am5dm5t to bank hold+ company act ( #aief ,section #e7;c77#e77;,b7 ( ! ,bank ,hold+ ,company ,act ( #aief 7#ab ,u4,s4,c4 #ahdd7;c77#e77;,b77 is am5d$-- 7,a7 by /rik+ clauses 7i7 & 7v72 7,b7 9 clause 7iv71 by /rik+ 2 or & ins]t+ a p]iod2 7,c7 9 clause 7iii71 by ins]t+ or aft] ! semicolon2 & 7,d7 by r$esignat+ clauses 7ii7 ?r\gh 7iv7 z clauses 7i7 ?r\gh 7iii71 respectively4 7#d7 ,am5dm5t to ! ,home ,own]'s ,loan ,act ,! ,home ,own]'s ,loan ,act 7#ae ,u4,s4,c4 #adfa et seq47 is am5d$-- 7,a7 9 section #b 7#ab ,u4,s4,c4 #adfb7 by add+ at ! end ! foll[+3 7#ab7 ,functionally regulat$ affiliate ,! t]m functionally regulat$ affiliate means1 ) respect to a sav+s association1 any affiliate ( su* sav+s association t is a company describ$ 9 section #e7;c77#e77;,b7 ( ! ,bank ,hold+ ,company ,act ( #aief 7#ab ,u4,s4,c4 #ahdd7;c77#e77;,b774 2 & 7,b7 9 section #aj7;g7 7#ab ,u4,s4,c4 #adfg;a7g77 by add+ at ! end ! foll[+3 7#f7 ,capital = functionally regulat$ subsidi>ies & functionally regulat$ affiliates ,not)/&+ section #c7;b77#a7 ( ! ,t]m9at+ ,bail\ts = ,taxpay] ,fairness ,act ( #bjac1 ! ,bo>d may n1 by regulation1 guidel9e1 ord]1 or o!rwise1 prescribe or impose any capital or capital adequacy rules1 guidel9es1 /&>ds1 or requirem5ts on any functionally regulat$ subsidi>y ( a sav+s & loan hold+ company or functionally regulat$ affiliate ( a sav+s association t-- 7,a7 is n a depository in/itution2 & 7,b7 is-- 7i7 9 compliance ) ! applicable capital requirem5ts ( its ,f$]al regulatory au?ority 7includ+ ! ,securities & ,ex*ange ,commission7 or ,/ate insurance au?ority2 7ii7 prop]ly regi/]$ z an inve/m5t advis] "u ! ,inve/m5t ,advis]s ,act ( #aidj1 or ) any ,/ate2 or 7iii7 lic5s$ z an insurance ag5t ) ! appropriate ,/ate insurance au?ority4 4 7c7 ,specific elem5ts ( capital requirem5ts ,= purposes ( calculat+-- 7#a7 equity capital requirem5ts "u ?is section1 equity capital %all consi/ ( tangible common equity 7def9$ z common /ockhold]s' equity less goodwill71 def]r$ tax assets1 accumulat$ o!r compreh5sive income1 treasury /ock1 & intangible assets plus reta9$ e>n+s2 & 7#b7 total consolidat$ assets "u ?is section1 d]ivative exposures %all include-- 7,a7 ! fair value ( ! d]ivative exposures )\t recogniz+ ! b5efits ( any nett+ arrangem5t1 unless-- 7i7 ! nett+ arrangem5t is docum5t$ "u a =mal ma/] nett+ agreem5t or o!r =mal arrangem5t ) a d]ivatives cle>+ organization2 & 7ii7 ! f9ancial in/itution1 z a matt] ( ongo+ bus9ess practice1 ex*anges collat]al on a daily basis = ! fulfillm5t ( v>iation m>g9 requirem5ts on a net basis1 & fulfills all contractual paym5t requirem5ts1 includ+ paym5ts = contract t]m9ation1 on a net basis1 ) su* net ex*ange ( collat]al & paym5ts encompass+ all d]ivative exposures cov]$ by ! =mal arrangem5t2 & 7,b7 (f-balance %eet assets-- 7i7 def9$ z any assets 9 :i* ! f9ancial in/itution has gu>ante$ p]=mance by ano!r p>ty or provid$ a liquidity back/op %\ld ano!r p>ty be unable to p]=m "u ! contractual obligation2 & 7ii7 exclud+ commitm5ts to l5d1 :]eby c]ta9 provisions & or cov5ants exi/ t limit ! risk to ! bank hold+ company ) respect to future draws ( liquidity4 7d7 ,risk-,bas$ capital requirem5ts p]mitt$ 7#a7 ,rule ( con/ruction ,except z provid$ 9 p>agraph 7#b71 no?+ 9 ?is section %all be int]pret$ to prev5t any appropriate ,f$]al bank+ ag5cy f e/abli%+ supplem5tal risk-bas$ capital requirem5ts = any f9ancial in/itution ) m ?an #bj1jjj1jjj1jjj 9 total consolidat$ assets1 or any affiliate or subsidi>y ( su* in/itutions = ! purpose ( measur+ ! relative risk ( c]ta9 assets & prev5t+ inve/m5t 9 excessive am\nts ( riski] assets4 7#b7 ,limitation 7,a7 ,jo9t det]m9ation ,an appropriate ,f$]al bank+ ag5cy may n implem5t risk-bas$ capital requirem5ts ) respect to a f9ancial in/itution ) m ?an #bj1jjj1jjj1jjj1 unless all appropriate ,f$]al bank+ ag5cies agree t bank sup]vision is insuffici5t to prev5t ! excessive conc5tration ( riski] assets4 7,b7 ,report to congress ,be=e propos+ risk bas$ capital rules describ$ 9 ?is subsection1 ! appropriate ,f$]al bank+ ag5cies %all submit a jo9t report to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate & ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives detail+ ! defici5cy 9 sup]visory tools 9 prev5t+ inve/m5t 9 excessive am\nts ( riski] assets & h[ risk bas$ capital w be us$4 ,! appropriate ,f$]al bank+ ag5cies may e/abli% supplem5tal risk-bas$ capital requirem5ts t d n replace ! equity capital requirem5ts requir$ by ?is ,act n e>li] ?an #ij days aft] ! date ( submission ( ! report "u ?is subp>agraph4 7e7 ,treatm5t ( basel ,,iii int]national accord ,! ,bo>d1 ! ,corporation1 & ! ,comptroll] ( ! ,curr5cy %all be prohibit$ f any fur!r implem5tation ( any rules ( ! ,f$]al bank+ ag5cies reg>d+ ,basel ,,iii3 ,a ,global ,regulatory ,framework = ,m ,resili5t ,banks & ,bank+ ,sy/ems4 #d4 ,prohibition on subsidy transf]s ,section #bc;,a ( ! ,f$]al ,res]ve ,act 7#ab ,u4,s4,c4 #cga;c7 is am5d$-- 7#a7 9 subsection 7a71 by add+ at ! end ! foll[+3 7#e7 ,prohibition on transactions by insur$ depository in/itutions ) affiliates or subsidi>ies 7,a7 ,affiliate transactions prohibit$ ,except z provid$ 9 subp>agraph 7,b71 only an insur$ depository in/itution t is a memb] bank or an affiliate or subsidi>y ( a memb] bank may engage 9 a cov]$ transaction ) ano!r affiliate or subsidi>y t is n an insur$ depository in/itution4 7,b7 ,exceptions ,not)/&+ subp>agraph 7,a71 an insur$ depository in/itution t is n a memb] bank or an affiliate or subsidi>y ( a memb] bank may-- 7i7 engage 9 lawful divid5d paym5ts to its hold+ company2 or 7ii7 make sales ( prop]ty or securities to1 or accept infusions ( capital or o!r di/ributions f1 its p>5t hold+ company1 consi/5t ) section #ch;,a ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahcap74 2 & 7#b7 9 subsection 7b7-- 7,a7 by r$esignat+ p>agraphs 7#h7 ?r\gh 7#aa7 z p>agraphs 7#i7 ?r\gh 7#ab71 respectively2 & 7,b7 by ins]t+ aft] p>agraph 7#g7 ! foll[+3 7#h7 ! t]m memb] bank means a memb] bank hav+ less ?an #ej1jjj1jjj1jjj ( total consolidat$ assets2 4 #e4 ,limitation on ! ,f$]al safety net 7a7 ,prohibition aga9/ gov]nm5t assi/ance to non-,banks ,except 9 connection ) ! resolution ( any insur$ depository in/itution or f9ancial company = :i* ! ,corporation has be5 appo9t$ z receiv]1 no affiliate or subsidi>y ( a f9ancial in/itution1 or affiliate ( an insur$ depository in/itution or nonbank f9ancial in/itution may receive any assi/ance ?r\gh-- 7#a7 asset pur*ases made by ! ,unit$ ,/ates ,gov]nm5t1 loans f ! ,unit$ ,/ates ,gov]nm5t1 inve/m5ts 9 debt or equity made by ! ,unit$ ,/ates ,gov]nm5t1 or capital injections f ! ,unit$ ,/ates ,gov]nm5t2 7#b7 ! ,ex*ange ,/abilization ,fund1 z e/abli%$ "u section #b ( ! ,gold ,res]ve ,act ( #aicd2 7#c7 ! ,deposit ,insurance ,fund e/abli%$ "u section #aa7;a77#d7 ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahba7;a77#d772 7#d7 ! ,bo>d1 pursuant to its au?ority "u section #aj;,b1 #ac1 or #ac;,a ( ! ,f$]al ,res]ve ,act 7#ab ,u4,s4,c4 #cdg;b1 #cdb1 & #cdc72 or 7#e7 ! ,bo>d1 pursuant to its au?ority "u ! ?ird p>agraph ( section #ac ( ! ,f$]al ,res]ve ,act 7#ab ,u4,s4,c4 #cdc74 7b7 ,exclusion = monet>y policy ,subsection 7a7 %all n apply to transactions or op]ations implem5t+ monet>y policy matt]s "u ! direction ( ! ,f$]al ,op5 ,m>ket ,committee or ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em4 7c7 ,l5d+ to sy/emically important f9ancial m>ket utilities ,section #hjf ( ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act 7#ab ,u4,s4,c4 #fdee7 is am5d$-- 7#a7 by /rik+ subsections 7a7 ?r\gh 7c72 & 7#b7 r$esignat+ subsections 7d7 & 7e7 z subsections 7a7 & 7b71 respectively4 7d7 ,t]m9ation ( sy/emic risk exemption ,section #ac7;c77#d77;,g7 ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbc7;c77#d77 is am5d$-- 7#a7 by /rik+ subp>agraph 7,g72 & 7#b7 by r$esignat+ subp>agraph 7,h7 z subp>agraph 7,g74 #f4 ,relief = community banks & small sav+s associations 7a7 ,rural def9ition ,= purposes ( ! rules ( ! ,bureau ( ,consum] ,f9ancial ,protection 79 ?is section ref]r$ to z ! ,bureau7 reg>d+ qualifi$ mortgages = purposes ( section #abi;,c7c77#b7 ( ! ,tru? 9 ,l5d+ ,act1 ! def9ition ( ! t]m rural means any area o!r ?an-- 7#a7 a city or t[n t has a population ( great] ?an #ej1jjj inhabitants2 & 7#b7 any urbaniz$ area contigu\s & adjac5t to a city or t[n describ$ 9 p>agraph 7#a74 7b7 ,securities ,ex*ange ,act ( #aicd ,! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq47 is am5d$-- 7#a7 9 section #ab7;g7 7#ae ,u4,s4,c4 #ghl7g77-- 7,a7 9 p>agraph 7#a77;,b71 by ins]t+ aft] is a bank ! foll[+3 1 a sav+s & loan hold+ company 7z def9$ 9 section #aj ( ! ,home ,own]s' ,loan ,act712 & 7,b7 9 p>agraph 7#d71 by ins]t+ aft] case ( a bank ! foll[+3 1 a sav+s & loan hold+ company 7z def9$ 9 section #aj ( ! ,home ,own]s' ,loan ,act712 & 7#b7 9 section #ae7;d71 by /rik+ case ( bank & ins]t+ ! foll[+3 case ( a bank1 a sav+s & loan hold+ company 7z def9$ 9 section #aj ( ! ,home ,own]s' ,loan ,act714 7c7 ,f$]al res]ve bo>d ,! policy /atem5t ( ! ,bo>d 9 ! ,small ,bank ,hold+ ,company ,/atem5t f\nd at ,"p #bbe ( ! app5dix to title #ab1 ,code ( ,f$]al ,regulations 7or any successor !reto71 %all apply to f9ancial in/itutions t are o!rwise subject to t policy /atem5t ) consolidat$ assets ( m ?an #e1jjj1jjj1jjj4 7d7 ,mutual hold+ company divid5d waiv]s ,not)/&+ ! rule ( ! ,bo>d reg>d+ ,mutual ,hold+ ,company ,divid5d ,waiv]s 9 section #bci4fc ( title #ab1 ,code ( ,f$]al ,regulations 7or any successor !reto71 gr&fa!r$ mutual hold+ companies & all o!r mutual hold+ companies %all be p]mitt$ to waive ! receipt ( divid5ds decl>$ on ! common /ock ( _! bank or mid-size hold+ companies4 7e7 ,exam9ation ombudsman 7#a7 ,9 g5]al ,! ,f$]al ,f9ancial ,in/itutions ,exam9ation ,c\ncil ,act ( #aigh 7#ab ,u4,s4,c4 #ccja et seq47 is am5d$ by add+ at ! end ! foll[+3 #ajab4 ,(fice ( ,exam9ation ,ombudsman 7a7 ,e/abli%m5t ,!re is e/abli%$ 9 ! ,c\ncil an ,(fice ( ,exam9ation ,ombudsman4 7b7 ,head ( ,(fice ,!re is e/abli%$ ! position ( ! ,ombudsman1 :o %all s]ve z ! head ( ! ,(fice ( ,exam9ation ,ombudsman1 & :o %all be hir$ sep>ately by ! ,c\ncil & %all be indep5d5t f any memb] ag5cy ( ! ,c\ncil4 7c7 ,/aff+ ,! ,ombudsman is au?oriz$ to hire /aff to support ! activities ( ! ,(fice ( ,exam9ation ,ombudsman4 7d7 ,duties ,! ,ombudsman %all-- 7#a7 receive &1 at ! ,ombudsman's discretion1 inve/igate compla9ts f f9ancial in/itutions1 _! repres5tatives1 or ano!r entity act+ on behalf ( su* in/itutions1 conc]n+ exam9ations1 exam9ation practices1 or exam9ation reports2 7#b7 hold meet+s1 at lea/ once e #c mon?s & 9 locations design$ to enc\rage p>ticipation f all sections ( ! ,unit$ ,/ates1 ) f9ancial in/itutions1 _! repres5tatives1 or ano!r entity act+ on behalf ( su* in/itutions1 to discuss exam9ation proc$ures1 exam9ation practices1 or exam9ation policies2 7#c7 review exam9ation proc$ures ( ! ,f$]al f9ancial in/itutions regulatory ag5cies to ensure t ! writt5 exam9ation policies ( ^? ag5cies are be+ foll[$ 9 practice & adh]e to ! /&>ds = consi/5cy e/abli%$ by ! ,c\ncil2 7#d7 conduct a cont9u+ & regul> program ( exam9ation quality assurance = all exam9ation types conduct$ by ! ,f$]al f9ancial in/itutions regulatory ag5cies2 7#e7 process any sup]visory appeal initiat$ "u section #ajae or section #cji7;e7 ( ! ,riegle ,community ,developm5t & ,regulatory ,improvem5t ,act ( #aiid2 & 7#f7 report annually to ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives1 ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate1 & ! ,c\ncil1 on ! reviews c>ri$ out pursuant to p>agraphs 7#c7 & 7#d71 includ+ compliance ) ! requirem5ts set =? 9 section #ajab reg>d+ timel9ess ( exam9ation reports1 & ! ,c\ncil's recomm5dations = improvem5ts 9 exam9ation proc$ures1 practices1 & policies4 7e7 ,confid5tiality ,! ,ombudsman %all keep confid5tial all meet+s1 discussions1 & in=mation provid$ by f9ancial in/itutions4 4 7#b7 ,def9ition ,section #ajjc ( ! ,f$]al ,f9ancial ,in/itutions ,exam9ation ,c\ncil ,act ( #aigh 7#ab ,u4,s4,c4 #ccjb7 is am5d$-- 7,a7 9 p>agraph 7#b71 by /rik+ & at ! end2 7,b7 9 p>agraph 7#c71 by add+ & at ! end2 & 7,c7 by add+ at ! end ! foll[+3 7#d7 ! t]m ,ombudsman means ! ,ombudsman e/abli%$ "u section #ajab4 4 7f7 ,exception to annual writt5 privacy notice requirem5t "u ! gramm-,lea*-,bliley act ,section #ejc ( ! ,gramm-,lea*-,bliley ,act 7#ae ,u4,s4,c4 #fhjc7 is am5d$ by add+ at ! end ! foll[+3 7f7 ,exception to annual writt5 notice requirem5t 7#a7 ,9 g5]al ,a f9ancial in/itution describ$ 9 p>agraph 7#b7 %all n be requir$ to provide an annual writt5 disclosure "u ?is section1 until su* "t z ! f9ancial in/itution fails to comply ) subp>agraph 7,a71 7,b71 or 7,c7 ( p>agraph 7#a74 7#b7 ,cov]$ in/itutions ,p>agraph 7#a7 applies ) respect to a f9ancial in/itution t-- 7,a7 provides nonpublic p]sonal in=mation 9 accordance ) ! provisions ( subsection 7b77#b7 or 7e7 ( section #ejb or regulations prescrib$ "u section #ejd7;b72 7,b7 has n *ang$ its policies & practices ) respect to disclos+ nonpublic p]sonal in=mation f ! policies & practices t 7 disclos$ 9 ! mo/ rec5t disclosure s5t to consum]s 9 accordance ) ?is section2 & 7,c7 o!rwise provides cu/om]s access to su* mo/ rec5t disclosure 9 electronic or o!r =m p]mitt$ by regulations prescrib$ "u section #ejd4 4 7g7 ,exemption f small bus9ess data collection ,section #gjd;,b7h77#a7 ( ! ,equal ,cr$it ,opportunity ,act 7#ae ,u4,s4,c4 #afia;c-#b7;h77#a77 is am5d$ by ins]t+ ) m ?an #aj1jjj1jjj1jjj 9 total consolidat$ assets aft] entity4 7h7 ,dodd-,frank ,section #aga7;b77#e77;,c7 ( ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act 7#ab ,u4,s4,c4 #ecga7;b77#e77;,c77 is am5d$ by ins]t+ be=e ! p]iod at ! end or sav+s & loan hold+ company ) less ?an #ejj1jjj1jjj 9 total consolidat$ assets4