The Dodd-Frank Act builds on prior efforts to limit big-bank market share by expanding prohibited acquisitions so that covered firms may not acquire entities that put their share of U.S. financial liabilities above ten percent. Unlike insured deposits and other liabilities easily ascertained through bank call reports and publicly-available data, “financial liabilities” are a complex concept that poses major measurement challenges to the FRB, addressed in the proposal through a series of new reporting and related requirements that could be problematic to non-bank companies. The measurement of liabilities could, however, give non-U.S. banking organizations an edge given that comparably-sized U.S. firms would be barred from acquiring sizeable U.S. banking organizations other than in crises.
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