Citing the “range and complexity of the issues addressed in the rulemaking,” the Federal Reserve has extended the comment period on new requirements for foreign banks and non-bank financial companies doing substantial business in the U.S. Originally due by March 31, comments will now be accepted through April 30.
To comply with mandates of the Dodd-Frank Act, rules proposed in December would require foreign banking organizations with “a significant U.S. presence” to organize subsidiaries under a single U.S. intermediate holding company. Doing so, the Fed says, would allow for enhanced supervision and aligned prudential standards. It would also facilitate the resolution of failing subsidiaries if needed.
