Congress has begun active consideration of rewriting the Dodd-Frank Act criteria for imposing additional prudential standards on bank holding companies with assets over $50 billion. Although various options are under consideration, an approach introduced by a bipartisan group of senior Members of the House of Representatives would essentially repeal the $50 billion threshold at which an array of Dodd-Frank rules are imposed. It would instead apply these tougher, costly standards, at least at first, only to the U.S. BHCs designated by the Financial Stability Board as global systemically-important banks (G-SIBs). Other BHCs could also be designated and thus subjected to stringent regulation and heightened restrictions, but only following a strong FSOC vote to do so under the designation criteria adopted by the FSB.

The full report is available to retainer clients. To find out how you can sign up for the service, click here