Federal Register: FRB Requests Comment on Proposal to Enhance Risk-Based Capital Requirements for Firms Engaged in Physical Commodity Activities

The Board of Governors of the Federal Reserve System requested comment on its proposal to enhance risk-based capital requirements on financial holding companies engaged in activities related to physical commodities and merchant banking investments. The proposal would require firms to hold additional capital in connection with physical commodity activities, including the extraction, storage, and transportation of commodities. The request for comment was published in the Federal Register.

For a discussion of the proposal, see Cadwalader Attorneys Review Fed's Proposed Rollback of Physical Commodities Authority for Financial Holding Companies.

Comments on the proposal must be submitted by December 22, 2016.