Study Recommendations Regarding Concentration Limits On Large Financial Companies

Section 622 of Dodd-Frank establishes a financial sector concentration limit that would prohibit a financial company from merging or consolidating with, or acquiring, another company if the resulting company's consolidated liabilities would exceed 10 percent of the aggregate consolidated liabilities of all financial companies. This concentration limit is intended, along with a number of other provisions in the Dodd-Frank Act, to promote financial stability and address the perception that large financial institutions are "too big to fail."

Date

January 18, 2011

Cross References (links may require a Cabinet subscription)

Section 622 Study