12 USC 1852 - Concentration limits on large financial firms

U.S Code last checked for updates: Nov 22, 2024

§ 1852.

Concentration limits on large financial firms

(a)

Definitions

In this section—

(1)

the term “Council” means the Financial Stability Oversight Council;

(2)

the term “financial company” means—

(A)

an insured depository institution;

(B)

a bank holding company;

(C)

a savings and loan holding company;

(D)

a company that controls an insured depository institution;

(E)

a nonbank financial company supervised by the Board under title I of the Dodd-Frank Wall Street Reform and Consumer Protection Act [12 U.S.C. 5311 et seq.]; and

(F)

a foreign bank or company that is treated as a bank holding company for purposes of this chapter; and

(3)

the term “liabilities” means—

(A)

with respect to a United States financial company—

(i)

the total risk-weighted assets of the financial company, as determined under the risk-based capital rules applicable to bank holding companies, as adjusted to reflect exposures that are deducted from regulatory capital; less

(ii)

the total regulatory capital of the financial company under the risk-based capital rules applicable to bank holding companies;

(B)

with respect to a foreign-based financial company—

(i)

the total risk-weighted assets of the United States operations of the financial company, as determined under the applicable risk-based capital rules, as adjusted to reflect exposures that are deducted from regulatory capital; less

(ii)

the total regulatory capital of the United States operations of the financial company, as determined under the applicable risk-based capital rules; and

(C)

with respect to an insurance company or other nonbank financial company supervised by the Board, such assets of the company as the Board shall specify by rule, in order to provide for consistent and equitable treatment of such companies.

(b)

Concentration limit

(c)

Exception to concentration limit

With the prior written consent of the Board, the concentration limit under subsection (b) shall not apply to an acquisition—

(1)

of a bank in default or in danger of default;

(2)

with respect to which assistance is provided by the Federal Deposit Insurance Corporation under section 1823(c) of this title; or

(3)

that would result only in a de minimis increase in the liabilities of the financial company.

(d)

Rulemaking and guidance

(e)

Council study and rulemaking

(1)

Study and recommendations

Not later than 6 months after July 21, 2010, the Council shall—

(A)

complete a study of the extent to which the concentration limit under this section would affect financial stability, moral hazard in the financial system, the efficiency and competitiveness of United States financial firms and financial markets, and the cost and availability of credit and other financial services to households and businesses in the United States; and

(B)

make recommendations regarding any modifications to the concentration limit that the Council determines would more effectively implement this section.

(2)

Rulemaking

(May 9, 1956, ch. 240, § 14, as added Pub. L. 111–203, title VI, § 622, July 21, 2010, 124 Stat. 1632.)

cite as: 12 USC 1852