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Dodd-Frank Enhanced Prudential Standards Final Rule

Today, the Federal Reserve published a final rule establishing Dodd-Frank enhanced prudential standards for U.S. bank holding companies with ≥$50 billion in total consolidated assets (Large U.S. BHCs) and foreign banking organizations with ≥$50 billion in total consolidated assets (Large FBOs).

By way of background, Section 165 of the Dodd-Frank Act requires the Federal Reserve to establish enhanced prudential standards, including heightened capital standards, liquidity standards, single counterparty credit limits, enhanced risk management requirements, capital stress testing requirements (final rules already issued) and an early remediation framework, for Large U.S. BHCs, Large FBOs as well as U.S. and foreign nonbank financial companies that have been designated as systemically important by the Financial Stability Oversight Council (Nonbank SIFIs).

Materials: 

Federal Reserve, Dodd-Frank Enhanced Prudential Standards Final Rule (Feb. 18, 2014) available here: http://www.federalreserve.gov/newsevents/press/bcreg/bcreg20140218a1.pdf

Federal Reserve Staff Memorandum, Dodd-Frank Enhanced Prudential Standards Final Rule (Feb. 18, 2014) available here: http://www.federalreserve.gov/aboutthefed/boardmeetings/memo_20140218.pdf

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