The consolidated supervision framework has two primary objectives:
- Enhancing resiliency of a firm to lower the probability of its failure or inability to serve as a financial intermediary.
- Each firm is expected to ensure that the consolidated organization (or the combined U.S. operations in the case of FBOs) and its core business lines can survive under a broad range of internal or external stresses.
- Reducing the impact on the financial system and the broader economy in the event of a firm’s failure or material weakness.
- Each firm is expected to ensure the sustainability of its critical operations and banking offices under a broad range of internal or external stresses.