Financial Institutions and Markets

By: Edmund D. Harllee
Williams Mullen (North Carolina and Virginia, USA)

On Thursday, January 5, the Federal Reserve Board (the “Board”) issued proposed new Regulation YY, in order to implement changes required by the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Act”).

Sections 165 and 166 of the Act require the Board to impose various “enhanced prudential standards” on so-called “covered companies.”  Two types of covered companies would be regulated under new Regulation YY, domestic bank holding companies having total consolidated assets of $50 billion or more and domestic non-bank financial companies that the new Financial Stability Oversight Counsel (the “Counsel”) has designated as requiring such regulation by the Board.  The Board intends to issue proposed additional regulations in the future with respect to the other types of covered companies. Click here to read entire article.