WASHINGTON May 8 The U.S. Federal Reserve on
Thursday proposed a rule to limit concentration in the financial
sector, a requirement of the 2010 Dodd-Frank Act to make banks
safer after the crisis.
The rule would prohibit a bank merger if the new company's
liabilities exceed 10 percent of the aggregate consolidated
liabilities of all financial companies, the central bank said in
a press release.
Companies subject to the rule would be depository
institutions, bank holding companies, savings and loan holding
companies, foreign banking organizations, companies that control
insured depository institutions, and non-bank financial
companies designated "as systemic" by the Financial Stability
Oversight Council (FSOC), a tag that carries greater regulation
and Fed oversight.
The public has until July 8 to comment on the rule, which
the Fed then needs to finalize before it comes into effect.
(Reporting by Douwe Miedema; Editing by Sandra Maler)