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Fed’s 10% Bank Rule, NYSE Orders, Deutsche Boerse: Compliance 

May 13, 2014
Carla Main, Businessweek

The Federal Reserve is seeking input on a measure that would bar U.S. banks from acquisitions that push their share of all financial-company liabilities above a 10 percent threshold.

The proposal, released May 8, would implement a Dodd-Frank Act mandate that would match a nationwide 10 percent cap that already applies to deposits. The central bank is inviting public comments until July 8.

The limit is meant to promote financial stability and combat the perception that some U.S. institutions may be too big to fail. It would bolster an existing industry cap prohibiting mergers that create a bank with more than 10 percent of U.S. deposits, “because it also takes into account nondeposit liabilities and off-balance-sheet exposures,” the Financial Stability Oversight Council said in a 2011 report. It listed companies including Bank of America Corp. and JPMorgan Chase & Co. as having sufficient liabilities to face restrictions on acquisitions.

Read more: Businessweek

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