Legislation approved on a partisan basis by the Senate Banking Committee would revise the Dodd-Frank Act’s thresholds for designating bank holding companies as systemically-important financial institutions (SIFIs), eliminating the $50 billion threshold that now subjects BHCs to automatic governance by an array of heightened prudential rules and resolution-planning requirements. Only BHCs with assets above $500 billion would automatically be designated SIFIs subject to these rules. Global systemically-important banks (G-SIBs) would be designated for still higher standards only based on the regulatory framework proposed by the Federal Reserve. The non-bank SIFI designation criteria are not changed, although the designation process for them is altered elsewhere in the legislation.
The full report is available to retainer clients. To find out how you can sign up for the service, click here