,,ib ,union ,calendar ,no4 #dje #aaith ,,congress #b;d ,session ,h4 ,r4 #fedg ,report ,no4 #aai-dgd ,,in ,,the ,,house ,,of ,,representatives ,december #aj1 #bjbe,mr4 ,flood introduced the following bill2 which was referred to the ,committee on ,financial ,services ,february #b1 #bjbf;,additional sponsors3 ,mr4 ,foster1 ,mr4 ,rose1 ,mr4 ,moskowitz1 and ,mr4 ,lawler ,february #b1 #bjbf,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 ,december #aj1 #bjbe ,a ,,bill ,to amend the ,federal ,deposit ,insurance ,act to provide an exception to the least-cost resolution requirement1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,least ,cost ,exception ,act4 #b4 ,least cost resolution exception to avoid further concentration among global systemically important banking organizations 7a7 ,in general ,section #ac7;c77#d7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbc7;c77#d77 is amended-- 7#a7 in subparagraph 7,a77ii71 by inserting except as provided in subparagraph 7,i71 before the total amount2 7#b7 in subparagraph 7,e77i71 by inserting and except as provided in subparagraph 7,i71 after appropriate12 and 7#c7 by adding at the end the following3 7,i7 ,least cost resolution exception 7i7 ,in general ,with respect to an exercise of authority by the ,corporation described in subparagraph 7,a71 the ,corporation may1 at the discretion of the ,corporation1 select an alternative method of exercising such authority that is not the least costly to the ,deposit ,insurance ,fund1 if-- 7,i7 the ,corporation determines that the selected alternative complies with the requirements of clause 7iii72 and 7,,ii7 the ,corporation and the ,board of ,governors of the ,federal ,reserve ,system1 after consultation with the ,secretary of the ,treasury1 determine that the potential additional risks to the ,deposit ,insurance ,fund of the selected alternative are outweighed by the reasonably expected benefits of limiting further concentration of the ,united ,states banking system in global systemically important banking organizations4 7ii7 ,maximum cost to the ,deposit ,insurance ,fund ,not later than #a year after the date of enactment of this subparagraph1 the ,corporation1 by rule1 shall establish criteria for determining on a case-by-case basis the maximum allowable cost against the net worth of the ,deposit ,insurance ,fund that may be utilized to account for any determination under clause 7i74 7iii7 ,requirements described ,the requirements for the selected alternative described in clause 7i7 are as follows3 7,i7 ,the selected alternative is least costly to the ,deposit ,insurance ,fund of all alternatives that do not involve a transaction with a global systemically important banking organization and that do not exceed the cost of liquidating the insured depository institution4 7,,ii7 ,the difference between the cost of the selected alternative and the cost of a covered alternative is less than the maximum cost to the ,deposit ,insurance ,fund specified pursuant to the rule adopted under clause 7ii74 7,,iii7 ,in the case of a selected alternative that involves another person purchasing assets of the insured depository institution or assuming deposit liabilities of the insured depository institution1 such person agrees to pay an assessment to the ,corporation comprised of payments-- 7aa7 made over a period to be determined by the ,corporation1 but which may not be less than #e years2 and 7bb7 in an amount that takes into account1 on a case-by-case basis1 criteria the ,corporation1 by rule1 shall establish1 including a realistic discount rate1 the aggregate amount equal to the difference calculated in subclause 7,,ii71 and any bid inconsistent with the purposes of this ,act1 with such rule to be established by the ,corporation not later than #a year after the date of enactment of this subparagraph4 7iv7 ,report to ,congress ,not later than #cj days after selecting an alternative described in clause 7i71 the ,corporation shall issue a report to the ,committee on ,financial ,services of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate containing an analysis of the economic difference between the cost to the ,deposit ,insurance ,fund of the selected alternative and the cost to the ,deposit ,insurance ,fund of the least costly alternative that would have been selected absent the application of this subparagraph4 7v7 ,cost determinations ,all cost determinations required under this subparagraph shall be made in accordance with subparagraphs 7,b7 and 7,c74 7vi7 ,definitions ,in this subparagraph3 7,i7 ,covered alternative ,the term covered alternative means a method of exercising authority described in subparagraph 7,a7 that is the least costly to the ,deposit ,insurance ,fund of all such methods that involve a sale of all or substantially all assets of the insured depository institution to1 and assumption of all or substantially all deposit liabilities of the insured depository institution by1 a global systemically important banking organization4 7,,ii7 ,global systemically important banking organization ,the term global systemically important banking organization means a global systemically important ,,bhc 7as such term is defined in section #bag4djb of title #ab1 ,code of ,federal ,regulations1 or any successor thereto7 and any affiliate thereof4 4 7b7 ,rule of construction ,section #ac7;c77#d77;,h7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbc7;c77#d77;,h77 does not apply to the amendments made by subsection 7a74 ,february #b1 #bjbf,reported with an amendment1 committed to the ,committee of the ,whole ,house on the ,state of the ,union1 and ordered to be printed