,,ib ,union ,calendar ,no4 #dgd #aaeth ,,congress #b;d ,session ,h4 ,r4 #dgij ,report ,no4 #aae-fba ,,in ,,the ,,house ,,of ,,representatives ,january #ab1 #bjah ,mr4 ,hill introduced the following bill2 which was referred to the ,committee on ,financial ,services ,april #e1 #bjah;,additional sponsors3 ,mr4 ,foster1 ,mr4 ,gottheimer1 and ,mr4 ,hultgren ,april #e1 #bjah ,reported with an amendment1 committed to the ,committee of the ,whole ,house on the ,state of the ,union1 and ordered to be printed ,strike out all after the enacting clause and insert the part printed in italic ,for text of introduced bill1 see copy of bill as introduced on ,january #ab1 #bjah ,a ,,bill ,to amend the ,volcker rule to give the ,board of ,governors of the ,federal ,reserve ,system sole rulemaking authority1 to exclude community banks from the requirements of the ,volcker rule1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,volcker ,rule ,regulatory ,harmonization ,act4 #b4 ,rulemaking authority under the ,volcker rule 7a7 ,in general ,paragraph 7#b7 of section #ac7;b7 of the ,bank ,holding ,company ,act of #aief 7#ab ,u4,s4,c4 #ahea7;b77#b77 is amended to read as follows3 7#b7 ,rulemaking 7,a7 ,in general ,the ,board may1 as appropriate1 consult with the ,comptroller of the ,currency1 the ,federal ,deposit ,insurance ,corporation1 the ,securities and ,exchange ,commission1 or the ,commodity ,futures ,trading ,commission to adopt rules or guidance to carry out this section1 as provided in subparagraph 7,b74 7,b7 ,rulemaking requirements ,in adopting a rule or guidance under subparagraph 7,a71 the ,board-- 7i7 shall consider the findings of the report required in paragraph 7#a7 and1 as appropriate1 subsequent reports2 7ii7 shall assure1 to the extent possible1 that such rule or guidance provide for consistent application and implementation of the applicable provisions of this section to avoid providing advantages or imposing disadvantages to the companies affected by this subsection and to protect the safety and soundness of banking entities and nonbank financial companies supervised by the ,board2 and 7iii7 shall include requirements to ensure compliance with this section1 such as requirements regarding internal controls and recordkeeping4 7,c7 ,authority ,the ,board shall have sole authority to issue and amend rules under this section after the date of the enactment of this paragraph4 7,d7 ,conforming authority 7i7 ,continuity of regulations ,any rules or guidance issued under this section prior to the date of enactment of this paragraph shall continue in effect until the ,board issues a successor rule or guidance1 or amends such rule or guidance1 pursuant to subparagraph 7,c74 7ii7 ,applicable guidance ,in performing examinations or other supervisory duties1 the appropriate ,federal banking agencies1 the ,securities and ,exchange ,commission1 and the ,commodity ,futures ,trading ,commission1 as appropriate1 shall update any applicable policies and procedures to ensure that such policies and procedures are consistent 7to the extent practicable7 with any rules or guidance issued pursuant to subparagraph 7,c74 4 7b7 ,conforming amendments ,section #ac of the ,bank ,holding ,company ,act of #aief 7#ab ,u4,s4,c4 #ahea7 is amended-- 7#a7 by striking the appropriate ,federal banking agencies1 the ,securities and ,exchange ,commission1 and the ,commodity ,futures ,trading ,commission1 each place it appears and inserting the ,board2 7#b7 by striking #8#8appropriate ,federal banking agencies1 the ,securities and ,exchange ,commission1 and the ,commodity ,futures ,trading ,commission'' each place it appears and inserting #8#8,board''2 7#c7 in subsection 7c77#e71 by striking ,notwithstanding paragraph 7#b7 and all that follows through provided in subsection 7b77#b71 and inserting ,the ,board shall have the authority2 and 7#d7 in subsection 7d77#a7-- 7,a7 in subparagraph 7,f77ii7-- 7i7 by striking the appropriate ,federal banking agencies and inserting the ,board2 and 7ii7 by striking have not jointly and inserting has not2 and 7,b7 in subparagraph 7,g77viii71 by striking appropriate ,federal banking agencies1 the ,securities and ,exchange ,commission1 or the ,commodity ,futures ,trading ,commission1 and inserting ,board14 #c4 ,enforcement2 anti-evasion 7a7 ,in general ,subsection 7e7 of section #ac of the ,bank ,holding ,company ,act of #aief 7#ab ,u4,s4,c4 #ahea7;e77 is amended to read as follows3 7e7 ,enforcement2 anti-evasion 7#a7 ,appropriate ,federal banking agency ,notwithstanding any other provision of law except for any rules or guidance issued under subsection 7b77#b71 whenever the appropriate ,federal banking agency has reasonable cause to believe that a banking entity or nonbank financial company supervised by the ,board has made an investment or engaged in an activity in a manner that either violates the restrictions under this section1 or that functions as an evasion of the requirements of this section 7including through an abuse of any permitted activity71 such appropriate ,federal banking agency shall order1 after due notice and opportunity for hearing1 the banking entity or nonbank financial company supervised by the ,board to terminate the activity and1 as relevant1 dispose of the investment4 7#b7 ,securities and ,exchange ,commission and ,commodity ,futures ,trading ,commission 7,a7 ,in general ,notwithstanding any other provision of law except for any rules or guidance issued under subsection 7b77#b71 whenever the ,securities and ,exchange ,commission or the ,commodity ,futures ,trading ,commission1 as appropriate1 has reasonable cause to believe that a covered nonbank financial company for which the respective agency is the primary ,federal regulator has made an investment or engaged in an activity in a manner that either violates the restrictions under this section1 or that functions as an evasion of the requirements of this section 7including through an abuse of any permitted activity71 the ,securities and ,exchange ,commission or the ,commodity ,futures ,trading ,commission1 as appropriate1 shall order1 after due notice and opportunity for hearing1 the covered nonbank financial company to terminate the activity and1 as relevant1 dispose of the investment4 7,b7 ,covered nonbank financial company defined ,in this paragraph1 the term covered nonbank financial company means a nonbank financial company 7as defined in section #ajb of the ,financial ,stability ,act of #bjaj7 supervised by the ,securities and ,exchange ,commission or the ,commodity ,futures ,trading ,commission1 as appropriate4 4 7b7 ,rule of construction ,nothing in this section shall be construed to abrogate1 reduce1 or eliminate the backup authority of the ,federal ,deposit ,insurance ,corporation authority under the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act 7#ab ,u4,s4,c4 #ecja et seq471 the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahaa71 or ,federal ,deposit ,insurance ,corporation ,improvement ,act of #aiia4 #d4 ,exclusion of community banks from ,volcker rule ,section #ac7;h77#a7 of the ,bank ,holding ,company ,act of #aief 7#ab ,u4,s4,c4 #ahea7;h77#a77 is amended-- 7#a7 in subparagraph 7,d71 by redesignating clauses 7i7 and 7ii7 as subclauses 7,i7 and 7,,ii71 respectively1 and adjusting the margins accordingly2 7#b7 by redesignating subparagraphs 7,a71 7,b71 7,c71 and 7,d7 as clauses 7i71 7ii71 7iii71 and 7iv71 respectively1 and adjusting the margins accordingly2 7#c7 in the matter preceding clause 7i71 as so redesignated1 in the second sentence1 by striking institution that functions solely in a trust or fiduciary capacity1 if-- and inserting the following3 institution-- 7,a7 that functions solely in a trust or fiduciary capacity1 if-- 2 7#d7 in clause 7iv77,,ii71 as so redesignated1 by striking the period at the end and inserting 2 or2 and 7#e7 by adding at the end the following3 7,b7 that does not have and is not controlled by a company that has-- 7i7 more than #aj1jjj1jjj1jjj in total consolidated assets2 and 7ii7 total trading assets and trading liabilities1 as reported on the most recent applicable regulatory filing filed by the institution1 that are more than #e percent of total consolidated assets4 4 ,april #e1 #bjah ,reported with an amendment1 committed to the ,committee of the ,whole ,house on the ,state of the ,union1 and ordered to be printed