FRB Releases First Determination of Aggregate Consolidated Liabilities of All Financial Companies
The Board of Governors of the Federal Reserve System ("FRB") released its first determination of the aggregate consolidated liabilities of all financial companies in accordance with Dodd-Frank Act Section 622 ("Concentration Limits on Large Financial Firms").
The determination "prohibits any financial company from combining with another company if the resulting company's liabilities exceed 10 percent of the aggregate consolidated liabilities of all financial companies."
The limit applies to the following financial companies: insured depository institutions, bank holding companies, savings and loan holding companies, foreign banking organizations, companies that control insured depository institutions, and non-bank financial companies designated for FRB supervision by the Financial Stability Oversight Council.