X
    X
    X
    X

    New FRB Regulations Affecting Foreign Bank Owned Insurers

    Publications

    Last Friday, the Federal Reserve Board (FRB) proposed rules to strengthen the oversight of U.S. operations of foreign banks.

    The proposal, which implements provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act, would require foreign banking organizations with a significant U.S. presence to create an intermediate holding company over their U.S. subsidiaries (including U.S. insurers) to facilitate supervision and regulation of the U.S. operations of these foreign banks. Foreign banking organizations would also be required to maintain stronger capital and liquidity positions in the United States.  The proposal generally applies to foreign banking organizations with a U.S. banking presence and total global consolidated assets of $50 billion or more. More stringent standards are proposed for foreign banking organizations with combined U.S. assets of $50 billion or more.

    The FRB is proposing a phase-in period to give foreign banking organizations time to adjust to the new rules. Foreign banking organizations with global consolidated assets of $50 billion or more on July 1, 2014, would be required to meet the new standards on July 1, 2015.

    Comments from the public will be accepted through March 31, 2013.

    For more information, see the FRB’s release here.

    Explore Additional Topics

    Disclaimer

    Please understand that your communications with Locke Lord LLP through this website do not constitute or create an attorney-client relationship with Locke Lord LLP. Any information you send to Locke Lord LLP through this website is on a non-confidential and non-privileged basis. Therefore, do not send or include any information in your email that you consider to be confidential or privileged.