Section 174 — Studies and reports on holding company capital requirements

Section 174 of the Dodd-Frank Wall Street Reform and Consumer Protection Act was not codified. It reads as follows:

SEC. 174. STUDIES AND REPORTS ON HOLDING COMPANY CAPITAL
REQUIREMENTS.

(a) STUDY OF HYBRID CAPITAL INSTRUMENTS.—The Comptroller General of the United States, in consultation with the Board of Governors, the Comptroller of the Currency, and the Corporation, shall conduct a study of the use of hybrid capital instruments as a component of Tier 1 capital for banking institutions and bank holding companies. The study shall consider—

(1) the current use of hybrid capital instruments, such as trust preferred shares, as a component of Tier 1 capital;
(2) the differences between the components of capital permitted for insured depository institutions and those permitted for companies that control insured depository institutions;
(3) the benefits and risks of allowing such instruments to be used to comply with Tier 1 capital requirements;
(4) the economic impact of prohibiting the use of such capital instruments for Tier 1;
(5) a review of the consequences of disqualifying trust preferred instruments, and whether it could lead to the failure or undercapitalization of existing banking organizations;
(6) the international competitive implications prohibiting hybrid capital instruments for Tier 1;
(7) the impact on the cost and availability of credit in the United States from such a prohibition;
(8) the availability of capital for financial institutions with less than $10,000,000,000 in total assets; and
(9) any other relevant factors relating to the safety and soundness of our financial system and potential economic impact of such a prohibition.

(b) STUDY OF FOREIGN BANK INTERMEDIATE HOLDING COMPANY
C APITAL REQUIREMENTS.—The Comptroller General of the United States, in consultation with the Secretary, the Board of Governors, the Comptroller of the Currency, and the Corporation, shall conduct a study of capital requirements applicable to United States intermediate holding companies of foreign banks that are bank holding companies or savings and loan holding companies. The study shall consider—

(1) current Board of Governors policy regarding the treatment of intermediate holding companies;
(2) the principle of national treatment and equality of competitive opportunity for foreign banks operating in the United States;
(3) the extent to which foreign banks are subject on a consolidated basis to home country capital standards comparable to United States capital standards;
(4) potential effects on United States banking organizations operating abroad of changes to United States policy regarding intermediate holding companies;
(5) the impact on the cost and availability of credit in the United States from a change in United States policy regarding intermediate holding companies; and
(6) any other relevant factors relating to the safety and soundness of our financial system and potential economic impact of such a prohibition.

(c) REPORT.—Not later than 18 months after the date of enactment of this Act, the Comptroller General of the United States shall submit reports to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives summarizing the results of the studies required under subsection (a). The reports shall include specific recommendations for legislative or regulatory action regarding the treatment of hybrid capital instruments, including trust preferred shares, and shall explain the basis for such recommendations.