Only A First Step: The Federal Reserve Board's Proposed Enhanced Prudential Standards For Systemically Important Financial Institutions And Their Potential Implications for Asset Managers
23 January 2012
On December 20, the Federal Reserve issued a proposed rule that would apply enhanced prudential standards to U.S. bank holding companies with total consolidated assets of USD50 billion or more and nonbank financial companies that FSOC designates as systemically important. The Proposed Rule represents only a first step in setting out the prudential framework to which Covered Companies will be subject, leaving much to the FRB's future regulatory discretion. In this e-Alert, we consider the potential implications for non-bank affiliated asset managers.