United States 115th Congress Status: Died 1 R cosponsors

HR 4659 — To require the appropriate Federal banking agencies to recognize the exposure-reducing nature of client margin for cleared derivatives.

Last action — Placed on the Union Calendar, Calendar No. 680.

Track this bill free

No card. One bill, free forever — alerts when it moves.

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. Died in session

This bill died with 115th Congress. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

This bill amends the Federal Deposit Insurance Act, the Bank Holding Company Act of 1956, and the Home Owners' Loan Act to exclude initial client margin funds (i.e., funds lent to a client by a broker to facilitate a derivatives contract) from leverage-exposure calculations for purposes of determining whether an insured depository institution, a bank holding company, or a savings and loan holding company is in compliance with federal leverage-based capital standards.

Bill Text

What changed in the latest version

18 added · 3 removed

Plain-language change summary

The text indicates that additional sponsors have been added to H.R. 4659, which may enhance support for the bill. Additionally, the reference to the bill being introduced in the House has been removed, updating its status to indicate it has progressed in the legislative process. This matters because it reflects the bill's advancement and the involvement of more legislators in its support, which may influence its chances of passage.

→
Previous
Latest
4659 Introduced in House (IH)] <DOC> 115th CONGRESS 1st Session H.
4659 Reported in House (RH)] <DOC> Union Calendar No.
680 115th CONGRESS 2d Session H.
4659 To require the appropriate Federal banking agencies to recognize the exposure-reducing nature of client margin for cleared derivatives.
4659 [Report No.
115-882] To require the appropriate Federal banking agencies to recognize the exposure-reducing nature of client margin for cleared derivatives.
which was referred to the Committee on Financial Services _______________________________________________________________________ A BILL To require the appropriate Federal banking agencies to recognize the exposure-reducing nature of client margin for cleared derivatives.
which was referred to the Committee on Financial Services August 3, 2018 Additional sponsors:
Mr.
Sessions, Mr.
Hultgren, Mr.
Emmer, Mr.
Rodney Davis of Illinois, Mr.
Conaway, Mr.
Peterson, Mr.
Arrington, Mr.
Gonzalez of Texas, Mr.
Kustoff of Tennessee, Mr.
Austin Scott of Georgia, Mr.
Hill, Mr.
Messer, and Mr.
Gottheimer August 3, 2018 Committed to the Committee of the Whole House on the State of the Union and ordered to be printed _______________________________________________________________________ A BILL To require the appropriate Federal banking agencies to recognize the exposure-reducing nature of client margin for cleared derivatives.
<all>
Union Calendar No.
680 115th CONGRESS 2d Session H.
R.
4659 [Report No.
115-882] _______________________________________________________________________ A BILL To require the appropriate Federal banking agencies to recognize the exposure-reducing nature of client margin for cleared derivatives.
_______________________________________________________________________ August 3, 2018 Committed to the Committee of the Whole House on the State of the Union and ordered to be printed
⬇ Download PDF
View plain text versions (2)

Sections of law this bill changes

3 sections in 3 laws

From the bill's own amending language, matched to the official United States Code (current through Public Law 119-124).

Savings associations · 12 U.S.C. ch. 12 1 section
  • § 1467a Regulation of holding companies Amends

    12 U.S.C. § 1467a — at 1467a(g)(1)

    The law today

    (a) Definitions (1) In general As used in this section, unless the context otherwise requires— (A) Savings association The term “savings association” includes a savings bank or cooperative bank which is deemed by the appropriate Federal banking agency to be a savings association under subsection (l). (B) Uninsured institution The term “uninsured institution” means any depository institution the deposits of which are not insured by the Federal Deposit Insurance Corporation. (C) Company The term “company” means any corporation, partnership, trust, joint-stock company, or similar organization, but does not include the Federal Deposit Insurance Corporation, the Resolution Trust Corporation, any Federal home loan bank, or any company the majority of the shares of which is owned by the United States or any State, or by an instrumentality of the United States or any State. (D) Savings and loan holding company (i) In general Except as provided in clause (ii), the term “savings and loan holding company” means any company that directly or indirectly controls a savings association or that controls any other company that is a savings and loan holding company. (ii) Exclusion The term “savings and loan holding company” does not include— (I) a bank holding company that is registered under, and subject to, the Bank Holding Company Act of 1956 (12 U.S.C. 1841 et seq.), or to any company directly or indirectly controlled by such company (other than a savings association); (II) a company that controls a savings association that functions solely in a trust or fiduciary capacity as described in section 2(c)(2)(D) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(c)(2)(D)); or (III) a company described in subsection (c)(9)(C) solely by virtue of such company’s control of an intermediate holding company established pursuant to section 1467b of this title. (E) Multiple savings and loan holding company The term “multiple savings and loan holding company” means any savings and loan holding company which directly or indirectly controls 2 or more savings associations. (F) Diversified savings and loan holding company The term “diversified savings and loan holding company” means any savings and loan holding company whose subsidiary savings association and related activities as permitted under paragraph (2) of subsection (c) of this section represented, on either an actual or a pro forma basis, less than 50 percent of its consolidated net worth at the close of its preceding fiscal year and of its consolidated net earnings for such fiscal year, as determined in accordance with regulations issued by the appropriate Federal banking agency. (G) Subsidiary The term “subsidiary” has the same meaning as in section 1813 of this title. (H) Affiliate The term “affiliate” of a savings association means any person which controls, is controlled by, or is under common control with, such savings association. (I) Bank holding company The terms “bank holding company” and “bank” have the meanings given to such terms in section 2 of the Bank Holding Company Act of 1956 [12 U.S.C. 1841]. (J) Acquire The term “acquire” has the meaning given to such term in section 1823(f)(8) of this title. (2) Control For purposes of this section, a person shall be deemed to have control of— (A) a savings association if the person directly or indirectly or acting in concert with one or more other persons, or through one or more subsidiaries, owns, controls, or holds with power to vote, or holds proxies representing, more than 25 percent of the voting shares of such savings association, or controls in any manner the election of a majority of the directors of such association; (B) any other company if the person directly or indirectly or acting in concert with one or more other persons, or through one or more subsidiaries, owns, controls, or holds with power to vote, or holds proxies representing, more than 25 percent of the voting shares or rights of such other company, or controls in a...

    27 other bills also change this section · Follow it → Official text at uscode.house.gov ↗

Federal deposit insurance corporation · 12 U.S.C. ch. 16 1 section
  • § 1828 Regulations governing insured depository institutions Amends

    12 U.S.C. § 1828 — at 1828(n)

    The law today

    (a) Representations of deposit insurance (1) Insured depository institutions (A) In general Each insured depository institution shall display at each place of business maintained by that institution a sign or signs relating to the insurance of the deposits of the institution, in accordance with regulations to be prescribed by the Corporation. (B) Statement to be included Each sign required under subparagraph (A) shall include a statement that insured deposits are backed by the full faith and credit of the United States Government. (2) Regulations The Corporation shall prescribe regulations to carry out this subsection, including regulations governing the substance of signs required by paragraph (1) and the manner of display or use of such signs. (3) Penalties For each day that an insured depository institution continues to violate paragraph (1) or any regulation issued under paragraph (2), it shall be subject to a penalty of not more than $100, which the Corporation may recover for its use. (4) False advertising, misuse of FDIC names, and misrepresentation to indicate insured status (A) Prohibition on false advertising and misuse of FDIC names No person may represent or imply that any deposit liability, obligation, certificate, or share is insured or guaranteed by the Corporation, if such deposit liability, obligation, certificate, or share is not insured or guaranteed by the Corporation— (i) by using the terms “Federal Deposit”, “Federal Deposit Insurance”, “Federal Deposit Insurance Corporation”, any combination of such terms, or the abbreviation “FDIC” as part of the business name or firm name of any person, including any corporation, partnership, business trust, association, or other business entity; or (ii) by using such terms or any other terms, sign, or symbol as part of an advertisement, solicitation, or other document. (B) Prohibition on misrepresentations of insured status No person may knowingly misrepresent— (i) that any deposit liability, obligation, certificate, or share is insured, under this chapter, if such deposit liability, obligation, certificate, or share is not so insured; or (ii) the extent to which or the manner in which any deposit liability, obligation, certificate, or share is insured under this chapter, if such deposit liability, obligation, certificate, or share is not so insured, to the extent or in the manner represented. (C) Authority of the appropriate Federal banking agency The appropriate Federal banking agency shall have enforcement authority in the case of a violation of this paragraph by any person for which the agency is the appropriate Federal banking agency, or any institution-affiliated party thereof. (D) Corporation authority if the appropriate Federal banking agency fails to follow recommendation (i) Recommendation The Corporation may recommend in writing to the appropriate Federal banking agency that the agency take any enforcement action authorized under section 1818 of this title for purposes of enforcement of this paragraph with respect to any person for which the agency is the appropriate Federal banking agency or any institution-affiliated party thereof. (ii) Agency response If the appropriate Federal banking agency does not, within 30 days of the date of receipt of a recommendation under clause (i), take the enforcement action with respect to this paragraph recommended by the Corporation or provide a plan acceptable to the Corporation for responding to the situation presented, the Corporation may take the recommended enforcement action against such person or institution-affiliated party. (E) Additional authority In addition to its authority under subparagraphs (C) and (D), for purposes of this paragraph, the Corporation shall have, in the same manner and to the same extent as with respect to a State nonmember insured bank— (i) jurisdiction over— (I) any person other than a person for which another agency is the appropriate Federal banking agency or any institution-affiliate...

    19 other bills also change this section · Follow it → Official text at uscode.house.gov ↗

Bank holding companies · 12 U.S.C. ch. 17 1 section
  • § 1844 Administration Amends

    12 U.S.C. § 1844 — at 1844(c)(3)

    The law today

    (a) Registration of bank holding company Within one hundred and eighty days after May 9, 1956, or within one hundred and eighty days after becoming a bank holding company, whichever is later, each bank holding company shall register with the Board on forms prescribed by the Board, which shall include such information with respect to the financial condition and operations, management, and intercompany relationships of the bank holding company and its subsidiaries, and related matters, as the Board may deem necessary or appropriate to carry out the purposes of this chapter. The Board may, in its discretion, extend the time within which a bank holding company shall register and file the requisite information. A declaration filed in accordance with section 1843(l)(1)(C) 1 of this title shall satisfy the requirements of this subsection with regard to the registration of a bank holding company but not any requirement to file an application to acquire a bank pursuant to section 1842 of this title. (b) Regulations and orders The Board is authorized to issue such regulations and orders, including regulations and orders relating to the capital requirements for bank holding companies, as may be necessary to enable it to administer and carry out the purposes of this chapter and prevent evasions thereof. In establishing capital regulations pursuant to this subsection, the Board shall seek to make such requirements countercyclical, so that the amount of capital required to be maintained by a company increases in times of economic expansion and decreases in times of economic contraction, consistent with the safety and soundness of the company. (c) Reports and examinations (1) Reports (A) In general The Board, from time to time, may require a bank holding company and any subsidiary of such company to submit reports under oath to keep the Board informed as to— (i) its financial condition, systems for monitoring and controlling financial and operating risks, and transactions with depository institution subsidiaries of the bank holding company; and (ii) compliance by the bank holding company or subsidiary with— (I) this chapter; (II) Federal laws that the Board has specific jurisdiction to enforce against the company or subsidiary; and (III) other than in the case of an insured depository institution or functionally regulated subsidiary, any other applicable provision of Federal law. (B) Use of existing reports and other supervisory information The Board shall, to the fullest extent possible, use— (i) reports and other supervisory information that the bank holding company or any subsidiary thereof has been required to provide to other Federal or State regulatory agencies; (ii) externally audited financial statements of the bank holding company or subsidiary; (iii) information otherwise available from Federal or State regulatory agencies; and (iv) information that is otherwise required to be reported publicly. (C) Availability Upon the request of the Board, the bank holding company or a subsidiary of the bank holding company shall promptly provide to the Board any information described in clauses (i) through (iii) of subparagraph (B). (2) Examinations (A) In general Subject to subtitle B of the Consumer Financial Protection Act of 2010 [12 U.S.C. 5511 et seq.], the Board may make examinations of a bank holding company and each subsidiary of a bank holding company in order to— (i) inform the Board of— (I) the nature of the operations and financial condition of the bank holding company and the subsidiary; (II) the financial, operational, and other risks within the bank holding company system that may pose a threat to— (aa) the safety and soundness of the bank holding company or of any depository institution subsidiary of the bank holding company; or (bb) the stability of the financial system of the United States; and (III) the systems of the bank holding company for monitoring and controlling the risks described in subclause (II); and (ii) monit...

    10 other bills also change this section · Follow it → Official text at uscode.house.gov ↗

How this bill changes current law

5 changes Share ↗

Compared against current U.S. Code AI-generated reading aid — verify against the official bill.

The bill amends existing law to explicitly recognize the treatment of client margin for cleared derivatives by requiring its deduction from leverage exposure for insured depository institutions, bank holding companies, and savings and loan holding companies.

  • 12 U.S.C. 1828(n)

    No appropriate → (1) Unidentified intangible assets.--No appropriate

    Clarifies the context of the existing provision by introducing a numbered item.

  • 12 U.S.C. 1828(n)

    (2) Treatment of client margin.--For purposes of any leverage-based capital rule, guideline, standard, or requirement promulgated, prescribed, or imposed by any appropriate Federal banking agency on insured depository institutions, the amount of any initial margin provided by a client of an insured depository institution with respect to a centrally-cleared derivative obligation shall be deducted from the amount of any leverage exposure arising from the insured depository institution's guarantee of the client's derivative obligation to the central counterparty.

    Establishes the requirement for client margin from centrally-cleared derivatives to be deducted from leverage exposure.

  • 12 U.S.C. 1844(c)(3)

    (D) Treatment of client margin.--For purposes of any leverage-based capital rule, guideline, standard, or requirement promulgated, prescribed, or imposed by the Board on bank holding companies, the amount of any initial margin provided by a client of a bank holding company or affiliate thereof with respect to a centrally-cleared derivative obligation shall be deducted from the amount of any leverage exposure arising from the guarantee by the bank holding company or affiliate thereof of the client's derivative obligation to the central counterparty.

    Implements a similar deduction requirement for client margin for bank holding companies.

  • 12 U.S.C. 1467a(g)(1)

    The Board → (A) Regulations and orders.--The Board

    Refines the introduction to the section regarding the Board's regulations and orders.

  • 12 U.S.C. 1467a(g)(1)

    (B) Treatment of client margin.--For purposes of any leverage-based capital rule, guideline, standard, or requirement promulgated, prescribed, or imposed by the Board on savings and loan holding companies, the amount of any initial margin provided by a client of a savings and loan holding company or affiliate thereof with respect to a centrally-cleared derivative obligation shall be deducted from the amount of any leverage exposure arising from the guarantee by the savings and loan holding company or affiliate thereof of the client's derivative obligation to the central counterparty.

    Establishes the deduction requirement for client margin in savings and loan holding companies.

Action History

  1. Reported by the Committee on Financial Services. H. Rept. 115-882.

  2. Reported by the Committee on Financial Services. H. Rept. 115-882.

  3. Placed on the Union Calendar, Calendar No. 680.

  4. Committee Consideration and Mark-up Session Held.

  5. Ordered to be Reported by the Yeas and Nays: 44 - 16.

  6. Hearings Held by the Subcommittee on Capital Markets Prior to Referral.

  7. Introduced in House

  8. Introduced in House

  9. Referred to the House Committee on Financial Services.

Sponsors

Sponsorship breakdown

Export CSV (upgrade) →

1 sponsors · 0 co-sponsors · 546 not signed on

Sponsors (1)

Co-sponsors (0)

None.

Not signed on (546)

546 members have not signed on to this bill.

Show all 546 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

finance
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does HR 4659 do?
This bill amends the Federal Deposit Insurance Act, the Bank Holding Company Act of 1956, and the Home Owners' Loan Act to exclude initial client margin funds (i.e., funds lent to a client by a broker to facilitate a derivatives contract) from leverage-exposure calculations for purposes of determining whether an insured depository institution, a bank holding company, or a savings and loan holding company is in compliance with federal leverage-based capital standards.
Who sponsors HR 4659?
HR 4659 is sponsored by Luetkemeyer, Blaine (Republican).
What is the current status of HR 4659?
This bill died with 115th Congress. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track HR 4659?
Track HR 4659 free on One Click Politics — get push/email alerts when it moves.

Make your voice heard on HR 4659

Find the representatives who decide this bill and tell them where you stand — for yourself, or mobilize your whole list in one click with One Click Politics advocacy software.

Find my representatives → Run a campaign

Stay ahead of HR 4659

Last checked for changes 3 months ago · updated continuously

One Click Politics tracks every bill in Congress and all 50 states.

Track this bill →