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Home Dodd-Frank Federal Reserve to Vote on Final Dodd-Frank Enhanced Prudential Standards

Federal Reserve to Vote on Final Dodd-Frank Enhanced Prudential Standards

The Federal Reserve has scheduled an open meeting for Tuesday, February 18, 2014, at 3:15 p.m., to vote on 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).

December 2011 Domestic Proposal.  In December 2011, the Federal Reserve issued a proposed rule to implement Dodd-Frank enhanced prudential standards for Large BHCs and U.S. Nonbank SIFIs.  Davis Polk’s memo on the Domestic Proposal is available here.

December 2012 FBO Proposal.  In December 2012, the Federal Reserve issued a proposed rule to implement Dodd-Frank enhanced prudential standards for Large FBOs and non-U.S. Nonbank SIFIs.  Davis Polk’s memo and visuals on the FBO Proposal are available here.

Materials:  Federal Reserve, February 18, 2014 Open Meeting Notice available here:  http://www.federalreserve.gov/aboutthefed/boardmeetings/20140218open.htm

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