,,ib ,union ,calendar ,no4 #acf #aaith  
,,congress  #ast ,session  ,h4 ,r4 #ccgi
 ,report ,no4 #aai-agj ,,in ,,the       
,,house ,,of ,,representatives  ,may    
#ad1 #bjbe,mr4 ,fitzgerald introduced   
the following bill2 which was referred  
to the ,committee on ,financial         
,services  ,june #be1 #bjbe,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
 ,may #ad1 #bjbe  ,a ,,bill  ,to amend  
the ,federal ,financial ,institutions   
,examination ,council ,act of #aigh to  
require the ,federal financial          
institutions regulatory agencies to     
update the ,,camels ,rating ,system1 and
 for other purposes4  #a4 ,short title  
,this ,act may be cited as the ,halting 
,uncertain ,methods and ,practices in   
,supervision ,act of #bjbe or the       

,,humps ,act of #bjbe4  #b4 ,findings   
,congress finds that-- 7#a7 ,,camels    
ratings 7,capital adequacy1 ,asset      
quality1 ,management1 ,earnings1        
,liquidity1 and ,sensitivity to market  
risk7 are a critical tool for evaluating
 the safety and soundness of financial  
institutions1 and the basis for         
determining significant regulatory      
matters such as the evaluation for      
mergers and acquisitions and a bank's   
deposit insurance premiums2  7#b7 the   
,,camels rating system relies heavily on
 examiner judgment1 which can lead to   
subjective and inconsistent ratings     
across similar institutions2  7#c7      
establishing clear1 objective measures  
for each ,,camels component and their   
relative weighting in determining       
composite ratings will promote fairness1
 consistency1 and accountability in     
supervisory assessments2 and  7#d7      
examination and supervision1 as well as 
the ,,camels rating system1 should focus
 on a financial institution's core      

financial condition or solvency4  #c4   
,amendments to the ,,camels ,rating     
,system  7a7 ,in general ,the ,federal  
,financial ,institutions ,examination   
,council ,act of #aigh 7#ab ,u4,s4,c4   
#ccja et seq47 is amended by adding at  
the end the following3  #ajab4          
,amendments to the ,,camels ,rating     
,system  7a7 ,in general ,the ,council  
shall make recommendations to amend the 
,uniform ,financial ,institutions       
,rating ,system1 and the ,,camels       
components thereunder1 to-- 7#a7        
establish clear and objective criteria  
for assessing each ,,camels component2  
7#b7 revise the factors affecting each  
,,camels component to derive a composite
 rating that more accurately reflects   
the financial condition and risk profile
 of the financial institutions being    
rated2  7#c7 either-- 7,a7 eliminate the
 management component of the ,,camels   
rating system2 or  7,b7 revise the      
management component of the ,,camels    
rating system to limit the assessment   

under such component to objective       
measures of the governance and controls 
used to manage an institution's risk    
profile2  7#d7 ensure that composite    
ratings consider the financial          
institution's compliance with-- 7,a7    
section #ba of the ,federal ,deposit    
,insurance ,act 7#ab ,u4,s4,c4 #ahbi;b72
  7,b7 chapter #b of title ,i of ,public
 ,law #ia-ejh 7#ab ,u4,s4,c4 #aiea et   
seq472  7,c7 subchapter ,,ii of chapter 
#ec of title #ca1 ,united ,states ,code2
 and  7,d7 any other applicable         
requirements and implementing           
regulations relating to the prevention  
of money laundering and terrorist       
financing2 and  7#e7 ensure that        
composite ratings are determined based  
on a transparent methodology that is    
limited to the objective criteria       
established for each ,,camels component4
  7b7 ,rulemaking ,not later than #ab   
months after the ,council makes the     
recommendations required under          
subsection 7a71 the ,federal financial  

institutions regulatory agencies shall1 
jointly1 issue rules to carry out the   
recommendations described under         
subsection 7a74  7c7 ,public comment    
period ,in issuing the rules required   
under subsection 7b71 the ,federal      
financial institutions regulatory       
agencies shall-- 7#a7 publish a notice  
of proposed rulemaking with respect to  
such rules2 and  7#b7 provide for a     
public comment period of not less than  
#ij days4  7d7 ,rule of construction    
,nothing in this section may be         
construed to limit the authority of the 
,federal financial institutions         
regulatory agencies to take supervisory 
or enforcement actions to ensure the    
safety and soundness of financial       
institutions4  4  7b7 ,well managed     
definition ,section #b7o77#i77;,a7 of   
the ,bank ,holding ,company ,act of     
#aief 7#ab ,u4,s4,c4 #ahda7o77#i77;,a77 
is amended-- 7#a7 by striking           
achievement of and all that follows     
through a ,,camel and inserting         

achievement of a ,,camel2  7#b7 by      
striking 2 and and inserting a period2  
and  7#c7 by striking clause 7ii74      
,june #be1 #bjbe,reported with an       
amendment1 committed to the ,committee  
of the ,whole ,house on the ,state of   
the ,union1 and ordered to be printed