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Implementing the Dodd-Frank Act: The Federal Reserve Board's Role
The Federal Reserve Board is responsible for issuing a number of rules under the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act" or "DFA"), sometimes in conjunction with other government agencies. Listed below are initiatives completed by the Board, along with some of the proposals the Board has planned through 2013 and proposed rules that are being finalized. Timeframes for upcoming initiatives are estimates and may be adjusted.
Initiatives Completed
Proposed Rules Planned In 2013
Dodd-Frank Act: Statutory Dates For Actions
Initiatives Completed (2012)
April 2013
Supervisory Assessment Fees
On April 15, 2013, the Board requested comment on a proposed rule to implement a requirement to impose fees on bank holding companies and savings and loan holding companies with assets of $50 billion or more, and nonbank financial companies supervised by the Board, that are sufficient to cover the cost of supervising and regulating these organizations. (DFA Section 318(c))
Voting in favor: Chairman Bernanke, Vice Chair Yellen, and Governors Duke, Tarullo, Raskin, Powell, and Stein
Against: None
Retail Foreign Exchange Futures and Options
On April 4, 2013, the Board issued a final rule to establish standards for banking organizations regulated by the Federal Reserve that engage in certain types of foreign exchange transactions with retail customers. (DFA Section 742)
Voting in favor: Chairman Bernanke, Vice Chair Yellen, and Governors Duke, Tarullo, Raskin, Powell, and Stein
Against: None
"Financial Company" Definition for SIFI Designation
On April 3, 2013, the Board issued a final rule that establishes the requirements for determining when a company is "predominantly engaged in financial activities." The requirements will be used by the Financial Stability Oversight Council (FSOC) when it considers the potential designation of a nonbank financial company for consolidated supervision by the Federal Reserve. (DFA Section 102)
Voting in favor: Chairman Bernanke, Vice Chair Yellen, and Governors Duke, Tarullo, Raskin, Powell, and Stein
Against: None
February 2013
Federal Reserve Accounts and Services for Financial Market Utilities
On February 26, 2013, the Board issued a proposed rule to amend Regulation HH to give Reserve Banks the authority to provide accounts and services to financial market utilities (FMUs) designated as systemically important by the Financial Stability Oversight Council (FSOC). (DFA Section 806)
Voting in favor: Chairman Bernanke, Vice Chair Yellen, and Governors Duke, Tarullo, Raskin, Powell, and Stein
Against: None
January 2013
Appraisals for Higher-Priced Mortgage Loans
On January 18, 2013, the Board, along with the CFPB, FDIC, FHFA, NCUA, and OCC, issued a final rule to implement appraisal requirements for higher-risk mortgages (DFA Section 1471)
Voting in favor: Chairman Bernanke, Vice Chair Yellen, and Governors Duke, Tarullo, Raskin, Powell, and Stein
Against: None
December 2012
FBO Enhanced Prudential Standards
On December 14, 2012, the Board issued a proposed rule to strengthen the oversight of U.S. operations of foreign banks. Enhanced prudential standards for U.S. large BHCs and nonbank financial companies were previously proposed on December 20, 2011. (DFA Section 165 & 166)
Voting in favor: Chairman Bernanke, Vice Chair Yellen, and Governors Duke, Tarullo, Raskin, Powell, and Stein
Against: None
November 2012
Bank Secrecy Act Definitions
On November 29, 2012, the Board and the Financial Crimes Enforcement Network (FinCEN) jointly issued a proposed rule to amend definitions of "funds transfer" and "transmittal of funds" under regulations implementing the Bank Secrecy Act that result from DFA amendments to the Electronic Fund Transfer Act. (DFA Section 1073)
Voting in favor: Chairman Bernanke, Vice Chair Yellen, and Governors Duke, Tarullo, Raskin, Powell, and Stein
Against: None
October 2012
Stress Testing Requirements
On October 9, 2012, the Board issued two final rules on stress testing requirements for certain bank holding companies, state member banks, and savings and loan holding companies for which the Federal Reserve is the primary federal financial regulator. Nonbank financial companies designated by the Financial Stability Oversight Council will also be subject to certain stress testing requirements contained in the rules. These final rules revise portions of proposed stress testing requirements contained in the Board's proposed rule to implement enhanced prudential standards issued for comment on December 20, 2011. The Federal Reserve coordinated closely with the FDIC and OCC to ensure consistency and comparability. (DFA Section 165(i)(1) and (i)(2))
Voting in favor: Chairman Bernanke, Vice Chair Yellen, and Governors Duke, Tarullo, Raskin, Powell, and Stein
Against: None
September 2012
Discount Window Lending and Open Market Transaction Publication
On September 28, 2012, the Board began the quarterly publication of transaction-level information related to discount window lending to depository institutions and open market transactions. The data in the initial release covers transactions between July 22, 2010, and September 30, 2010. This information will be made available on a quarterly basis and with an approximately two-year lag. The transaction-level detail supplements extensive aggregate information the Federal Reserve has previously provided in weekly, monthly, and quarterly reports. (DFA Section 1103(b))
August 2012
Real Estate Appraisal Requirements: Higher-Risk Mortgages
On August 15, 2012, the Board, along with the CFPB, FDIC, FHFA, NCUA, and OCC, requested comment on a proposed rule to implement appraisal requirements for higher-risk mortgages. (DFA Section 1471)
Voting in favor: Chairman Bernanke, Vice Chair Yellen, and Governors Duke, Tarullo, Raskin, Powell, and Stein
Against: None
July 2012
Financial Market Utilities (FMUs): Risk-Management Standards, Advance Notice Requirements
On July 30, 2012, the Board announced approval of a final rule to implement two provisions of the DFA related to supervision of FMUs designated as systematically important by the Financial Stability Oversight Council. Specifically, the rule establishes risk-management standards for designated FMUs supervised by the Federal Reserve (DFA Section 805 (a)(1)) and requirements for advance notice of a proposed material change to its rules, procedures, or operations (DFA Section 806 (e)(1)(B)).
Voting in favor: Chairman Bernanke, Vice Chair Yellen, and Governors Duke, Tarullo, Raskin, Powell, and Stein
Against: None
Debit Interchange
On July 27, 2012, the Board approved a final rule amending the provisions in Regulation II (Debit Card Interchange Fees and Routing) that permit a debit card issuer subject to the interchange fee standards to receive a fraud-prevention adjustment. The final rule revises provisions that are currently in effect as part of the interim final rule, which the Board announced on December 16, 2010.
Voting in favor: Chairman Bernanke, Vice Chair Yellen, and Governors Duke, Tarullo, Raskin, Powell, and Stein
Against: None
June 2012
Market Risk Capital Rule
On June 7, 2012, the Board approved a final rule, developed jointly with other Federal bank regulatory agencies, to implement changes to the market risk capital rule, which requires banking organizations with significant trading activities to adjust their capital requirements to better account for the market risks of these activities. The final rule includes alternative standards of creditworthiness for determining specific risk capital requirements for certain debt and securitization positions, consistent with the requirements of DFA Section 939A.
Voting in favor: Chairman Bernanke, Vice Chair Yellen, and Governors Duke, Tarullo, Raskin, Powell, and Stein
Against: None
Integrated Regulatory Capital Framework
On June 7, 2012, the Board requested comment on three proposed rules that taken together would establish an integrated regulatory capital framework implementing in the United States the Basel III regulatory capital reforms from the Basel Committee on Banking Supervision and changes required by the Dodd-Frank Act. (DFA Section 171)
Voting in favor: Chairman Bernanke, Vice Chair Yellen, and Governors Duke, Tarullo, Raskin, Powell, and Stein
Against: None
May 2012
Securities Holding Company Registration Procedures
On May 30, 2012, the Board announced approval of a final rule outlining the procedures for securities holding companies (SHCs) to elect to be supervised by the Federal Reserve. An SHC is a nonbank company that owns at least one registered broker or dealer. (DFA Section 618)
Voting in favor: Chairman Bernanke, Vice Chair Yellen, and Governors Duke, Tarullo, and Raskin
Against: None
April 2012
Volcker Rule Conformance Period Clarified
On April 19, 2012, the Board, along with the CFTC, FDIC, SEC, and OCC, clarified that an entity covered by the Volcker Rule has until July 21, 2014, two years following the statutory effective date of Section 619 of the Dodd-Frank Act, to fully conform its activities and investments. On February 9, 2011, the Board announced the final rule to implement the conformance period. (DFA Section 619(c)(6))
Voting in favor: Chairman Bernanke, Vice Chair Yellen, and Governors Duke, Tarullo, and Raskin
Against: None
"Financial Activities" Definition For SIFI Designation
On April 2, 2012, the Board requested comment on a proposed amendment to the Board's proposed rule issued February 11, 2011, to establish requirements for determining whether a company is "predominantly engaged in financial activities." The proposed amendment is intended to clarify the activities that are financial for purposes of DFA Title I. (DFA Section 102(b))
March 2012
Office of Minority and Women Inclusion (OMWI) Congressional Reports
On March 30, 2012, the Board and Federal Reserve Banks issued reports to Congress on their implementation of OMWI offices. (DFA Section 342)
