Page 258

section 3 of the Securities and Exchange Act of 1934 (15 U.S.C. 78c), which for the purposes of this section shall include a synthetic asset-backed security), shall not, at any time for a period ending on the date that is one year after the date of the first closing of the sale of the asset-backed security, engage in any transaction that would involve or result in any material conflict of interest with respect to any investor in a transaction arising out of such activity. Deadline. ‘‘(b) RULEMAKING.—Not later than 270 days after the date of enactment of this section, the Commission shall issue rules for the purpose of implementing subsection (a). ‘‘(c) EXCEPTION.—The prohibitions of subsection (a) shall not apply to— ‘‘(1) risk-mitigating hedging activities in connection with positions or holdings arising out of the underwriting, placement, initial purchase, or sponsorship of an asset-backed security, provided that such activities are designed to reduce the specific risks to the underwriter, placement agent, initial purchaser, or sponsor associated with positions or holdings arising out of such underwriting, placement, initial purchase, or sponsor- ship; or ‘‘(2) purchases or sales of asset-backed securities made pursuant to and consistent with— ‘‘(A) commitments of the underwriter, placement agent, initial purchaser, or sponsor, or any affiliate or subsidiary of any such entity, to provide liquidity for the asset-backed security, or ‘‘(B) bona fide market-making in the asset backed secu- rity. ‘‘(d) RULE OF CONSTRUCTION.—This subsection shall not other- wise limit the application of section 15G of the Securities Exchange Act of 1934.’’. 15 USC 77z–2a (b) EFFECTIVE DATE.—Section 27B of the Securities Act of 1933, note. as added by this section, shall take effect on the effective date of final rules issued by the Commission under subsection (b) of such section 27B, except that subsections (b) and (d) of such section 27B shall take effect on the date of enactment of this Act.

SEC. 622. CONCENTRATION LIMITS ON LARGE FINANCIAL FIRMS.
The Bank Holding Company Act of 1956 (12 U.S.C. 1841 et
seq.) is amended by adding at the end the following:

12 USC 1852. ‘‘SEC. 14. CONCENTRATION LIMITS ON LARGE FINANCIAL FIRMS.
‘‘(a) DEFINITIONS.—In this section—
‘‘(1) the term ‘Council’ means the Financial Stability Over-
sight Council;
‘‘(2) the term ‘financial company’ means—
‘‘(A) an insured depository institution;
‘‘(B) a bank holding company;
‘‘(C) a savings and loan holding company;
‘‘(D) a company that controls an insured depository
institution;
‘‘(E) a nonbank financial company supervised by the
Board under title I of the Dodd-Frank Wall Street Reform
and Consumer Protection Act; and

LAWS ‘‘(F) a foreign bank or company that is treated as a bank holding company for purposes of this Act; and ‘‘(3) the term ‘liabilities’ means—PUBLIC with on anorris VerDate Nov 24 2008 12:15 Aug 04, 2010 Jkt 089139 PO 00203 Frm 00258 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL203.111 APPS06 PsN: PUBL203