12 U.S.C. § 5330 — Additional standards applicable to activi-

Page 1845 TITLE 12—BANKS AND BANKING § 5330 1 See References in Text note below. graph (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 regard- ing an appeal under paragraph (1), which re- port shall include a statement of the basis for the proposed decision of the Council. (B) Notice of final decision 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 re- port under subparagraph (A); or (ii) if, not later than 1 year after the date of submission of the report under sub- paragraph (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) Considerations In making a decision regarding an appeal under paragraph (1), the Council shall con- sider whether the company meets the stand- ards 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) Review If the Council denies an appeal under this subsection, the Council shall, not less fre- quently than annually, review and reevaluate the decision. (Pub. L. 111–203, title I, § 117, July 21, 2010, 124 Stat. 1406.) 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. § 5328. Council funding Any expenses of the Council shall be treated as expenses of, and paid by, the Office of Finan- cial Research. (Pub. L. 111–203, title I, § 118, July 21, 2010, 124 Stat. 1408.) § 5329. Resolution of supervisory jurisdictional disputes among member agencies (a) Request for Council recommendation The Council shall seek to resolve a dispute among 2 or more member agencies, if— (1) a member agency has a dispute with an- other member agency about the respective ju- risdiction over a particular bank holding com- pany, nonbank financial company, or financial activity or product (excluding matters for which another dispute mechanism specifically has been provided under title X); 1 (2) the Council determines that the dis- puting agencies cannot, after a demonstrated good faith effort, resolve the dispute without the intervention of the Council; and (3) any of the member agencies involved in the dispute— (A) provides all other disputants prior no- tice of the intent to request dispute resolu- tion by the Council; and (B) requests in writing, not earlier than 14 days after providing the notice described in subparagraph (A), that the Council seek to resolve the dispute. (b) Council recommendation The Council shall seek to resolve each dispute described in subsection (a)— (1) within a reasonable time after receiving the dispute resolution request; (2) after consideration of relevant informa- tion provided by each agency party to the dis- pute; and (3) by agreeing with 1 of the disputants re- garding the entirety of the matter, or by de- termining a compromise position. (c) Form of recommendation Any Council recommendation under this sec- tion shall— (1) be in writing; (2) include an explanation of the reasons therefor; and (3) be approved by the affirmative vote of 2⁄3 of the voting members of the Council then serving. (d) Nonbinding effect Any recommendation made by the Council under subsection (c) shall not be binding on the Federal agencies that are parties to the dispute. (Pub. L. 111–203, title I, § 119, July 21, 2010, 124 Stat. 1408.) Editorial Notes REFERENCES IN TEXT Title X, referred to in subsec. (a)(1), is title X of Pub. L. 111–203, July 21, 2010, 124 Stat. 1955, known as the Consumer Financial Protection Act of 2010, which en- acted subchapter V (§ 5481 et seq.) of this chapter and enacted, amended, and repealed numerous other sec- tions and notes in the Code. For complete classification of title X to the Code, see Short Title note set out under section 5301 of this title and Tables. § 5330. Additional standards applicable to activi- ties or practices for financial stability pur- poses (a) In general The Council may provide for more stringent regulation of a financial activity by issuing rec- ommendations to the primary financial regu- latory agencies to apply new or heightened standards and safeguards, including standards enumerated in section 5325 of this title, for a fi- Page 1846 TITLE 12—BANKS AND BANKING § 5331 nancial activity or practice conducted by bank holding companies or nonbank financial compa- nies under their respective jurisdictions, if the Council determines that the conduct, scope, na- ture, size, scale, concentration, or interconnect- edness of such activity or practice could create or increase the risk of significant liquidity, credit, or other problems spreading among bank holding companies and nonbank financial com- panies, financial markets of the United States, or low-income, minority, or underserved com- munities. (b) Procedure for recommendations to regulators (1) Notice and opportunity for comment The Council shall consult with the primary financial regulatory agencies and provide no- tice to the public and opportunity for com- ment for any proposed recommendation that the primary financial regulatory agencies apply new or heightened standards and safe- guards for a financial activity or practice. (2) Criteria The new or heightened standards and safe- guards for a financial activity or practice rec- ommended under paragraph (1)— (A) shall take costs to long-term economic growth into account; and (B) may include prescribing the conduct of the activity or practice in specific ways (such as by limiting its scope, or applying particular capital or risk management re- quirements to the conduct of the activity) or prohibiting the activity or practice. (c) Implementation of recommended standards (1) Role of primary financial regulatory agency (A) In general Each primary financial regulatory agency may impose, require reports regarding, ex- amine for compliance with, and enforce standards in accordance with this section with respect to those entities for which it is the primary financial regulatory agency. (B) Rule of construction The authority under this paragraph is in addition to, and does not limit, any other authority of a primary financial regulatory agency. Compliance by an entity with ac- tions taken by a primary financial regu- latory agency under this section shall be en- forceable in accordance with the statutes governing the respective jurisdiction of the primary financial regulatory agency over the entity, as if the agency action were taken under those statutes. (2) Imposition of standards The primary financial regulatory agency shall impose the standards recommended by the Council in accordance with subsection (a), or similar standards that the Council deems acceptable, or shall explain in writing to the Council, not later than 90 days after the date on which the Council issues the recommenda- tion, why the agency has determined not to follow the recommendation of the Council. (d) Report to Congress The Council shall report to Congress on— (1) any recommendations issued by the Council under this section; (2) the implementation of, or failure to im- plement, such recommendation on the part of a primary financial regulatory agency; and (3) in any case in which no primary financial regulatory agency exists for the nonbank fi- nancial company conducting financial activi- ties or practices referred to in subsection (a), recommendations for legislation that would prevent such activities or practices from threatening the stability of the financial sys- tem of the United States. (e) Effect of rescission of identification (1) Notice The Council may recommend to the relevant primary financial regulatory agency that a fi- nancial activity or practice no longer requires any standards or safeguards implemented under this section. (2) Determination of primary financial regu- latory agency to continue (A) In general Upon receipt of a recommendation under paragraph (1), a primary financial regu- latory agency that has imposed standards under this section shall determine whether such standards should remain in effect. (B) Appeal process Each primary financial regulatory agency that has imposed standards under this sec- tion shall promulgate regulations to estab- lish a procedure under which entities under its jurisdiction may appeal a determination by such agency under this paragraph that standards imposed under this section should remain in effect. (Pub. L. 111–203, title I, § 120, July 21, 2010, 124 Stat. 1408.) § 5331. Mitigation of risks to financial stability (a) Mitigatory actions If the Board of Governors determines that a bank holding company with total consolidated assets of $250,000,000,000 or more, or a nonbank financial company supervised by the Board of Governors, poses a grave threat to the financial stability of the United States, the Board of Gov- ernors, upon an affirmative vote of not fewer than 2⁄3 of the voting members of the Council then serving, shall— (1) limit the ability of the company to merge with, acquire, consolidate with, or otherwise become affiliated with another company; (2) restrict the ability of the company to offer a financial product or products; (3) require the company to terminate one or more activities; (4) impose conditions on the manner in which the company conducts 1 or more activi- ties; or (5) if the Board of Governors determines that the actions described in paragraphs (1) through (4) are inadequate to mitigate a threat to the financial stability of the United States in its recommendation, require the company to sell or otherwise transfer assets or