S3601-118

1. Short title This Act may be cited as the Financial Stability Oversight Council Improvement Act of 2024.

2. Financial Stability Oversight Council Section 113 of the Financial Stability Act of 2010 (12 U.S.C. 5323) is amended— in subsection (a)— in paragraph (1), by striking The Council and inserting Subject to paragraph (3), the Council; and by adding at the end the following: The Council may not vote on a proposed determination with respect to a U.S. nonbank financial company under paragraph (1) unless the Council first determines, in consultation with the company and the primary financial regulatory agency with respect to the company, that a different action by the Council or the agency (including the application of new or heightened standards and safeguards under section 120), or by the company under a written plan that is submitted promptly to the Council, is impracticable or insufficient to mitigate the threat that the company could pose to the financial stability of the United States. in subsection (f)(1), by striking subsection (e) and inserting subsections (a)(3) and (e). Section 112(a)(2) of the Financial Stability Act of 2010 (12 U.S.C. 5322(a)(2)) is amended— in subparagraph (M)(ii), by striking and at the end; in subparagraph (N)(vi)(III), by striking the period at the end and inserting a semicolon; and by adding at the end the following: not later than 180 days after the date of enactment of this subparagraph, and once every 360 days thereafter, submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report that— identifies— the planning materials relating to a threat to the financial stability of the United States that are available for collection by, and dissemination to, member agencies; and the potential gaps in planning activities with respect to a threat to the financial stability of the United States and the threats posed by those gaps; and includes— steps taken by the Council to plan for a crisis with respect to the financial stability of the United States, which shall be consistent with discussions by member agencies; and a review of financial activities, products, and practices; and after any closed meeting of the Council, publicly release detailed minutes of that meeting. (3)Initial determinationThe Council may not vote on a proposed determination with respect to a U.S. nonbank financial company under paragraph (1) unless the Council first determines, in consultation with the company and the primary financial regulatory agency with respect to the company, that a different action by the Council or the agency (including the application of new or heightened standards and safeguards under section 120), or by the company under a written plan that is submitted promptly to the Council, is impracticable or insufficient to mitigate the threat that the company could pose to the financial stability of the United States.; and (O)not later than 180 days after the date of enactment of this subparagraph, and once every 360 days thereafter, submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report that—(i)identifies—(I)the planning materials relating to a threat to the financial stability of the United States that are available for collection by, and dissemination to, member agencies; and(II)the potential gaps in planning activities with respect to a threat to the financial stability of the United States and the threats posed by those gaps; and(ii)includes— (I)steps taken by the Council to plan for a crisis with respect to the financial stability of the United States, which shall be consistent with discussions by member agencies; and(II)a review of financial activities, products, and practices; and(P)after any closed meeting of the Council, publicly release detailed minutes of that meeting..