Alert April 16, 2013

FRB Issues Proposed Rule Concerning Annual Assessments on Largest Banking Organizations and on Nonbank Financial Companies Designated for FRB Supervision by FSOC

The FRB issued a proposed rule (the “Proposed Rule”) pursuant to Section 318 of the Dodd-Frank Act under which it would impose annual assessments on bank holding companies and savings and loan holding companies with total consolidated assets of $50 billion or more and on nonbank financial companies designated by the Financial Stability Oversight Council for supervision by the FRB.  The assessments are intended to equal the FRB’s estimate of the expenses that are “necessary or appropriate to carry out the [FRB’s] supervisory and regulatory responsibilities to be covered by the [applicable] assessment.”  The FRB estimates that for 2012 approximately 70 companies would be assessed and that aggregate assessments would total approximately $440 million. 

Comments on the Proposed Rule are due by June 15, 2013.