The Financial Stability Oversight Council (FSOC) is accepting comments until April 18 on recent changes to its hearing procedures addressing appeals by certain large firms objecting to their treatment as “non-bank” entities subject to consolidated supervision by the Federal Reserve Board.
The changes add hearings conducted under section 117 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) to the scope of the procedures. This section of the statute applies to an entity that was a bank holding company (BHC) that had total consolidated assets of $50 billion or more as of Jan. 1, 2010, and received financial assistance under or participated in the Capital Purchase Plan established under the Troubled Asset Relief Program (TARP). It also applies to “any successor entity” as defined by the Fed Board in consultation with the FSOC.
Section 117(b) of the act provides generally that if such an entity ceases to be a BHC, it will be treated as a non-bank financial company subject to Fed supervision. That entity may request, in writing, an opportunity for a written or oral hearing before the FSOC to appeal this treatment.
Approved and effective since March 13, the amended procedures could be revised based on comments received. The notice of availability and request for comment appeared in the March 19 Federal Register.