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The Text of the Dodd-Frank Act
International Association of
Risk and Compliance Professionals (IARCP)
Dodd Frank Act Section 121
SEC. 121. 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 $50,000,000,000 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 Governors, 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 activities; 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 off-balance-sheet items to unaffiliated entities.
(b) NOTICE AND HEARING.—
(1) IN GENERAL.—The Board of
Governors, in consultation with the Council, shall provide to a
company described in subsection (a) written notice that such
company is being considered for mitigatory action pursuant to this
section, including an explanation of the basis for, and
description of, the proposed mitigatory action.
(2)
HEARING.—Not later than 30 days after
the date of receipt of notice under paragraph (1), the company may
request, in writing, an opportunity for a written or oral hearing
before the Board of Governors to contest the proposed mitigatory
action.
Upon receipt of a timely request, the Board of
Governors shall fix a time (not later than 30 days after the date
of receipt of the request) and place at which such company may
appear, personally or through counsel, to submit written materials
(or, at the discretion of the Board of Governors, in consultation
with the Council, oral testimony and oral argument).
(3)
DECISION.—Not later than 60 days
after the date of a hearing under paragraph (2), or not later than
60 days after the provision of a notice under paragraph (1) if no
hearing was held, the Board of Governors shall notify the company
of the final decision of the Board of Governors, including the
results of the vote of the Council, as described in subsection
(a).
(c) FACTORS FOR CONSIDERATION.—The
Board of Governors and the Council shall take into consideration
the factors set forth in subsection (a) or (b) of section 113, as
applicable, in making any
determination under subsection (a).
(d) APPLICATION TO FOREIGN FINANCIAL
COMPANIES.—The Board of Governors may prescribe regulations
regarding the application of this section to foreign nonbank
financial companies supervised by the Board of Governors and
foreign-based bank holding companies—
(1) giving due regard
to the principle of national treatment and equality of competitive
opportunity; and
(2) taking into account the extent to
which the foreign nonbank financial company or foreign-based bank
holding company is subject on a consolidated basis to home country
standards that are comparable to those applied to financial
companies in the United States.
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