H.R. 3128 would expand the definition of a small institution, for purposes of this exemption, to include depository institution holding companies with total consolidated assets of less than $15 billion as reported on either December 31, 2009, or March 30, 2010. CBO estimates that the expanded definition would allow TruPS issued by one institution to count as tier 1 capital that would not otherwise qualify under current law. As a result, that institution may reduce other types of tier 1 capital that would be more flexible if its capital position were to deteriorate; however, CBO does not expect any significant effect on either the institution’s probability of failure or assistance provided by the federal government. As such, CBO estimates no effect on the federal budget over the next 10 years. Please read on at:
http://www.cbo.gov/publication/43342
http://www.cbo.gov/publication/43342
