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Press Release
May 08, 2014

Federal Reserve Board invites comment on
proposed rulemaking implementing section 622
of the Dodd-Frank Act
For immediate release
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The Federal Reserve Board on Thursday invited comment on a
proposed rulemaking that would implement section 622 of the DoddFrank Act, which prohibits a financial company from combining with
another company if the ratio of the resulting financial company's
liabilities exceeds 10 percent of the aggregate consolidated liabilities of
all financial companies.
Financial companies subject to the concentration limit would include
insured depository institutions, bank holding companies, savings and
loan holding companies, foreign banking organizations, companies that
control insured depository institutions, and nonbank financial companies
designated by the Financial Stability Oversight Council (FSOC) for
Board supervision.
Consistent with section 622, the proposal generally defines liabilities of a
financial institution as the difference between its risk-weighted assets, as
adjusted to reflect exposures deducted from regulatory capital, and its
total regulatory capital. Firms not subject to consolidated risk-based
capital rules would measure liabilities using generally accepted
accounting standards. The proposal would also provide that the Board
would measure and disclose the aggregate liabilities of financial
companies annually, and would calculate aggregate liabilities as a twoyear average. The proposal reflects recommendations made by the

FSOC.
Comments on the proposal should be submitted by July 8, 2014.
For media inquiries, call 202-452-2955.
Federal Register notice: HTML | PDF
Comments on this proposal: Submit

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Last Update: May 08, 2014

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