,,ii #aaeth ,,congress #b;d ,session ,s4 #cedb ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,october #c 7legislative day1 ,september #bh71 #bjah,mr4 ,sanders introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to break up large financial entities4 #a4 ,too big to fail1 too big to exist 7a7 ,definitions ,in this section-- 7#a7 the term covered entity-- 7,a7 means a financial institution1 as defined in section #hjc of the ,payment1 ,clearing1 and ,settlement ,supervision ,act of #bjaj 7#ab ,u4,s4,c4 #edfb72 and 7,b7 does not include-- 7i7 a ,farm ,credit ,system institution chartered under and subject to the provisions of the ,farm ,credit ,act of #aiga 7#ab ,u4,s4,c4 #bjja et seq472 7ii7 a governmental entity2 or 7iii7 a regulated entity1 as defined in section #acjc of the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib 7#ab ,u4,s4,c4 #dejb72 and 7#b7 the term gross domestic product means gross domestic product as calculated by the ,bureau of ,economic ,analysis of the ,department of ,commerce4 7b7 ,total exposure 7#a7 ,total exposure 7,a7 ,in general ,on ,february #a1 ,may #a1 ,august #a1 and ,november #a of each year1 no covered entity may have a total exposure1 as reported by the covered entity on the ,federal ,reserve form required to monitor the systemic risk profile of financial institutions for the previous reporting period1 equal to or greater than #c percent of the most recent estimate for annual gross domestic product of the ,united ,states 7in current dollars7 for the previous calendar year4 7,b7 ,other reporting ,if a covered entity is not required to complete a ,federal ,reserve form required to monitor the systemic risk profile of financial institutions1 the ,financial ,stability ,oversight ,council shall design and assign a quarterly reporting form as appropriate for each covered entity with total assets greater than #ej1jjj1jjj1jjj that reflects the total risk exposures of the financial institution1 including off-balance sheet exposures and derivatives exposure within #ah months of the date of enactment of this ,act4 ,once designated a reporting form1 on ,february #a1 ,may #a1 ,august #a1 and ,november #a no covered entity may have a total exposure1 as reported by the covered entity for the previous reporting period1 equal to or greater than #c percent of the most recent estimate for annual gross domestic product of the ,united ,states 7in current dollars7 for the previous calendar year4 7#b7 ,restructuring 7,a7 ,in general 7i7 ,designation ,any covered entity that violates paragraph 7#a7 shall immediately be designated as a ,too ,big to ,exist ,institution by the ,financial ,stability ,oversight ,council4 7ii7 ,supervision ,the ,vice ,chair for ,supervision of the ,board of ,governors of the ,federal ,reserve ,system1 or during any period in which that position is vacant1 the ,chair of the ,board of ,governors of the ,federal ,reserve ,system1 shall require and supervise a ,too ,big to ,exist ,institution to restructure to comply with paragraph 7#a7 not later than #b years after the date on which the first violation arises4 7,b7 ,subsequent requirements ,after the date on which a covered entity is required to restructure under subparagraph 7,a71 the ,vice ,chair for ,supervision of the ,board of ,governors of the ,federal ,reserve ,system or1 during any period in which that position is vacant1 the ,chair of the ,board of ,governors of the ,federal ,reserve ,system1 shall require and supervise any 8,too ,big to ,exist ,institution0 to restructure to comply with paragraph 7#a7 not later than #a year after the institution is again found to be in excess of the threshold specified in paragraph 7#a74 7c7 ,prohibition against use of federal reserve financing ,notwithstanding any other provision of law 7including regulations71 any ,too ,big to ,exist ,institution may not use or otherwise have access to advances from any ,federal ,reserve credit facility1 the ,federal ,reserve discount window1 or any other program or facility made available under the ,federal ,reserve ,act 7#ab ,u4,s4,c4 #bba et seq471 including any asset purchases1 temporary or bridge loans1 government investments in debt or equity1 or capital injections from any ,federal institution4 7d7 ,prohibition on use of insured deposits 7#a7 ,in general ,any ,too ,big to ,exist ,institution that is an insured depository institution1 or owns such an institution1 may not use any insured deposit amounts to fund-- 7,a7 any activity relating to hedging that is not directly related to commercial banking activity at the insured bank2 7,b7 any creation or use of derivatives for speculative purposes2 7,c7 any activity related to the dealing of derivatives2 7,d7 any creation of1 or lending against1 new or existing forms of structured or structured derivatives products1 including collateralized debt obligations1 collateralized loan obligations1 and synthetic derivatives of collateralized debt obligations and collateralized loan obligations2 or 7,e7 any other form of speculative activity that regulators specify4 7#b7 ,risk of loss ,a ,too ,big to ,exist ,institution may not conduct any activity listed in paragraph 7#a7 in such a manner that-- 7,a7 puts insured deposits at risk2 or 7,b7 creates a risk of loss to the ,deposit ,insurance ,fund4 7e7 ,report2 testimony ,the ,vice ,chair for ,supervision of the ,board of ,governors of the ,federal ,reserve ,system1 or during any period in which that position is vacant1 the ,chair of the ,board of ,governors of the ,federal ,reserve ,system1 and the ,chair of the ,financial ,stability ,oversight ,council shall annually testify before the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and the ,committee on ,financial ,services of the ,house of ,representatives and submit to those committees an annual report the restructuring and designation under subsection 7b77#b74 7f7 ,effective date ,subsections 7c7 and 7d7 shall apply to a covered entity #ij days after the date on which a covered entity is designated as a ,too ,big to ,exist ,institution4