Details

  • Service: Audit, Tax, Advisory
  • Industry: Financial Services, Banking & Capital Markets
  • Type: Publication series
  • Date: 1/15/2012

Dodd-Frank Quick Hits Alert – Enhanced Prudential Standards and Early Remediation Requirements - (January 2012) 

KPMG’s Americas’ Financial Services Regulatory Center of Excellence released an alert in January 2012 addressing the proposed rule published by the Federal Reserve regarding covered companies and the prudential standards to which they are obligated.
The Federal Reserve is proposing to implement a rule that requires risk-based capital and leverage requirements for covered companies including: liquidity, single-counterparty credit limits, overall risk management, risk committees and stress tests. A debt-to-equity limit would also be imposed for covered nonbank companies that the council has determined pose a grave threat to the financial stability of the United States.

This rule would also implement requirements to establish measures of financial condition and related remediation requirements that increase stringency as the financial condition of a covered company declines.