Page:United States Statutes at Large Volume 124.djvu/1456

 124 STAT. 1430 PUBLIC LAW 111–203—JULY 21, 2010 (A) be responsible for the oversight of the enterprise- wide risk management practices of the nonbank financial company supervised by the Board of Governors or bank holding company described in subsection (a), as applicable; (B) include such number of independent directors as the Board of Governors may determine appropriate, based on the nature of operations, size of assets, and other appro- priate criteria related to the nonbank financial company supervised by the Board of Governors or a bank holding company described in subsection (a), as applicable; and (C) include at least 1 risk management expert having experience in identifying, assessing, and managing risk exposures of large, complex firms. (4) RULEMAKING.—The Board of Governors shall issue final rules to carry out this subsection, not later than 1 year after the transfer date, to take effect not later than 15 months after the transfer date. (i) STRESS TESTS.— (1) BY THE BOARD OF GOVERNORS.— (A) ANNUAL TESTS REQUIRED.—The Board of Governors, in coordination with the appropriate primary financial regulatory agencies and the Federal Insurance Office, shall conduct annual analyses in which nonbank financial companies supervised by the Board of Governors and bank holding companies described in subsection (a) are subject to evaluation of whether such companies have the capital, on a total consolidated basis, necessary to absorb losses as a result of adverse economic conditions. (B) TEST PARAMETERS AND CONSEQUENCES.—The Board of Governors— (i) shall provide for at least 3 different sets of conditions under which the evaluation required by this subsection shall be conducted, including baseline, adverse, and severely adverse; (ii) may require the tests described in subpara- graph (A) at bank holding companies and nonbank financial companies, in addition to those for which annual tests are required under subparagraph (A); (iii) may develop and apply such other analytic techniques as are necessary to identify, measure, and monitor risks to the financial stability of the United States; (iv) shall require the companies described in subparagraph (A) to update their resolution plans required under subsection (d)(1), as the Board of Gov- ernors determines appropriate, based on the results of the analyses; and (v) shall publish a summary of the results of the tests required under subparagraph (A) or clause (ii) of this subparagraph. (2) BY THE COMPANY.— (A) REQUIREMENT.—A nonbank financial company supervised by the Board of Governors and a bank holding company described in subsection (a) shall conduct semi- annual stress tests. All other financial companies that have total consolidated assets of more than $10,000,000,000 and are regulated by a primary Federal financial regulatory Deadlines. Publication. Deadline. Effective date.