§5327 — Title 12 Banks and Banking | U.S. Code

Summary

Big companies that were bank holding companies with total assets of $50,000,000,000 or more on January 1, 2010, and that got help through the TARP Capital Purchase Program are covered. Any company that later replaces one of those companies is covered too. If one of these covered firms stops being a bank holding company after January 1, 2010, it must be treated as a nonbank financial company supervised by the Federal Reserve Board, the same as if the Financial Stability Oversight Council had designated it. A covered company can ask the Council in writing for a hearing to appeal that treatment. The Council must set a time and place within 30 days. The company may send written materials or, if the Council allows, speak in person. To approve an appeal decision, at least two‑thirds of the Council members then serving, including the Chairperson, must vote yes. Within 60 days after the hearing the Council must send a report on its proposed decision and reasons to the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services. The Council must notify the company of its final decision and reasons within 60 days after the later of that report or the last congressional hearing on the report (if such hearings happen within one year). The Council must use the legal standards for designation when deciding and must recheck any denial at least once a year.

Title 12, §5327

Banks and Banking — Source: USLM XML via OLRC

(a)This section shall apply to—

(1)any entity that—

(A)was a bank holding company having total consolidated assets equal to or greater than $50,000,000,000 as of January 1, 2010; and

(B)received financial assistance under or participated in the Capital Purchase Program established under the Troubled Asset Relief Program authorized by the Emergency Economic Stabilization Act of 2008 [12 U.S.C. 5201 et seq.]; and

(2)any successor entity (as defined by the Board of Governors, in consultation with the Council) to an entity described in paragraph (1).

(b)If an entity described in subsection (a) ceases to be a bank holding company at any time after January 1, 2010, then such entity shall be treated as a nonbank financial company supervised by the Board of Governors, as if the Council had made a determination under section 5323 of this title with respect to that entity.

(c)(1)An entity may request, in writing, an opportunity for a written or oral hearing before the Council to appeal its treatment as a nonbank financial company supervised by the Board of Governors in accordance with this section. Upon receipt of the request, the Council shall fix a time (not later than 30 days after the date of receipt of the request) and place at which such entity may appear, personally or through counsel, to submit written materials (or, at the sole discretion of the Council, oral testimony and oral argument).

(2)(A)A Council decision to grant an appeal under this subsection shall be made by a vote of not fewer than ⅔ of the voting members then serving, including an affirmative vote by the Chairperson. Not later than 60 days after the date of a hearing under paragraph (1), the Council shall submit a report to, and may testify before, the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives on the proposed decision of the Council regarding an appeal under paragraph (1), which report shall include a statement of the basis for the proposed decision of the Council.

(B)The Council shall notify the subject entity of the final decision of the Council regarding an appeal under paragraph (1), which notice shall contain a statement of the basis for the final decision of the Council, not later than 60 days after the later of—

(i)the date of the submission of the report under subparagraph (A); or

(ii)if, not later than 1 year after the date of submission of the report under subparagraph (A), the Committee on Banking, Housing, and Urban Affairs of the Senate or the Committee on Financial Services of the House of Representatives holds one or more hearings regarding such report, the date of the last such hearing.

(C)In making a decision regarding an appeal under paragraph (1), the Council shall consider whether the company meets the standards under section 5323(a) or 5323(b) of this title, as applicable, and the definition of the term “nonbank financial company” under section 5311 of this title. The decision of the Council shall be final, subject to the review under paragraph (3).

(3)If the Council denies an appeal under this subsection, the Council shall, not less frequently than annually, review and reevaluate the decision.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Emergency Economic Stabilization Act of 2008, referred to in subsec. (a)(1)(B), is div. A of Pub. L. 110–343, Oct. 3, 2008, 122 Stat. 3765, which is classified principally to chapter 52 (§ 5201 et seq.) of this title. For complete classification of this Act to the Code, see

Short Title

note set out under section 5201 of this title and Tables.

§5327 Treatment of Certain Companies That Cease to Be Bank Holding Companies