Fed Proposed Rules on Large Banks and Systemically Important Nonbanks

On December 20, pursuant to Sections 165 and 166 of the Dodd-Frank Act, the Fed proposed rules implementing new requirements for bank holding companies with consolidated assets of $50 billion or more and systemically important nonbank financial firms. The proposed rules address several measures, including: (i) risk-based capital and leverage requirements; (ii) liquidity requirements; (iii) stress tests; (iv) single-counterparty credit limits; and (v) debt-to-equity limits for companies that pose a grave threat to financial stability. Comments must be submitted by March 31. Fed Release.