Treasury Publishes Proposed Rule Establishing Assessment Schedule for Large Bank Holding Companies and Certain Nonbank Financial Firms

Dodd-Frank

On January 3, the Treasury Department published a proposed rule to implement Section 155 of the Dodd-Frank Act, which requires Treasury to establish an assessment schedule to cover expenses of the Office of Financial Research and the Financial Stability Oversight Council, as well as the costs of implementing the Federal Deposit Insurance Corporation's orderly liquidation authority. Under the proposal, Treasury would collect assessments twice each year from (i) domestic bank holding companies with total consolidated assets of $50 billion or more, (ii) foreign banking organizations with at least $50 billion in total consolidated assets in U.S. operations, and (iii) nonbank financial companies supervised by the Federal Reserve Board. Treasury proposes to establish a flat rate one month prior to each collection date, and to apply that rate to the total consolidated assets of each covered firm to determine each's assessment. For foreign firms, only total U.S. operations would be considered in calculating the assessment. Treasury expects to (i) finalize the rule before the end of May 2012, (ii) announce the first assessment rate in June 2012, and (iii) collect the first assessment on July 20, 2012.