Rules in Focus: Federal Reserve Report Suggests Repeal of Certain Bank Powers and Supervisory Exemptions
September 27, 2016
On September 8, three federal banking regulators released a joint report to the Congress and the Financial Stability Oversight Council Pursuant to Section 620 of the Dodd-Frank Act. The report analyzed permissible activities of different banking entities the three agencies currently regulate and the risks inherent in such activities. In a surprising development, the Federal Reserve Board (the “Board”) used the report to suggest that Congress curtail certain lending powers and terminate the ability of certain financial holding companies to evade direct supervision at the federal level. The co-authors of the report, the Federal Deposit Insurance Corporation (“FDIC”), and the Office of the Comptroller of the Currency (“OCC”), made no formal recommendations.