Section 989 — Government Accountability Office Study on Proprietary Trading
Section 989 of the Dodd-Frank Wall Street Reform and Consumer Protection Act was not codified. It reads as follows:
SEC. 989. GOVERNMENT ACCOUNTABILITY OFFICE STUDY ON PROPRIETARY
TRADING.
(a) Definitions.--In this section--
(1) the term "covered entity" means--
(A) an insured depository institution, an affiliate of an insured depository institution, a bank holding company, a financial holding company, or a subsidiary of a bank holding company or a financial holding company, as those terms are defined in the Bank Holding Company Act of
1956 (12 U.S.C. 1841 et seq.); and
(B) any other entity, as the Comptroller General of the United States may determine; and
(2) the term "proprietary trading" means the act of a covered entity investing as a principal in securities, commodities, derivatives, hedge funds, private equity firms, or such other financial products or entities as the Comptroller General may determine.
(b) Study.--
(1) In general.--The Comptroller General of the United States shall conduct a study regarding the risks and conflicts associated with proprietary trading by and within covered entities, including an evaluation of--
(A) whether proprietary trading presents a material systemic risk to the stability of the United States financial system, and if so, the costs and benefits of options for mitigating such systemic risk;
(B) whether proprietary trading presents material risks to the safety and soundness of the covered entities that engage in such activities, and if so, the costs and benefits of options for mitigating such risks;
(C) whether proprietary trading presents material conflicts of interest between covered entities that engage in proprietary trading and the clients of the institutions who use the firm to execute trades or who rely on the firm to manage assets, and if so, the costs and benefits of options for mitigating such conflicts of interest;
(D) whether adequate disclosure regarding the risks and conflicts of proprietary trading is provided to the depositors, trading and asset management clients, and investors of covered entities that engage in proprietary trading, and if not, the costs and benefits of options
for the improvement of such disclosure; and
(E) whether the banking, securities, and commodities regulators of institutions that engage in proprietary trading have in place adequate systems and controls to monitor and contain any risks and conflicts of interest related to proprietary trading, and if not, the costs
and benefits of options for the improvement of such systems and controls.
(2) Considerations.--In carrying out the study required under paragraph (1), the Comptroller General shall consider--
(A) current practice relating to proprietary trading;
(B) the advisability of a complete ban on proprietary trading;
(C) limitations on the scope of activities that covered entities may engage in with respect to proprietary trading;
(D) the advisability of additional capital requirements for covered entities that engage in proprietary trading;
(E) enhanced restrictions on transactions between affiliates related to proprietary trading;
(F) enhanced accounting disclosures relating to proprietary trading;
(G) enhanced public disclosure relating to proprietary trading; and
(H) any other options the Comptroller General deems appropriate.
(c) Report to Congress.--Not later than 15 months after the date of enactment of this Act, the Comptroller General shall submit a report to Congress on the results of the study conducted under subsection (b).
(d) Access by Comptroller General.--For purposes of conducting the study required under subsection (b), the Comptroller General shall have access, upon request, to any information, data, schedules, books, accounts, financial records, reports, files, electronic communications, or other papers, things, or property belonging to or in use by a covered entity that engages in proprietary trading, and to the officers, directors, employees, independent public accountants, financial advisors, staff, and agents and representatives of a covered entity (as related to the activities of the agent or representative on behalf of
the covered entity), at such reasonable times as the Comptroller General may request. The Comptroller General may make and retain copies of
books, records, accounts, and other records, as the Comptroller General deems appropriate.
(e) Confidentiality of Reports.--
(1) In general.--Except as provided in paragraph (2), the Comptroller General may not disclose information regarding--
(A) any proprietary trading activity of a covered entity, unless such information is disclosed at a level of generality that does not reveal the investment or trading position or strategy of the covered entity for any specific security, commodity, derivative, or other investment or financial product; or
(B) any individual interviewed by the Comptroller General for purposes of the study under subsection (b), unless such information is disclosed at a level of generality that does not reveal--
(i) the name of or identifying details relating to such individual; or
(ii) in the case of an individual who is an employee of a third party that provides professional services to a covered entity believed
to be engaged in proprietary trading, the name of or any identifying details relating to such third party.
(2) Exceptions.--The Comptroller General may disclose the information described in paragraph (1)--
(A) to a department, agency, or official of the Federal Government, for official use, upon request;
(B) to a committee of Congress, upon request; and
(C) to a court, upon an order of such court.