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Fed Issues Final Rule on Annual Fees

Fed Board buildingThe Federal Reserve Board will begin collecting annual fees from the nation's biggest banks and certain nonbank financial companies later this year.

The Board issued a final rule in August establishing the fees to help cover the costs of supervising those institutions. Section 318 of the Dodd-Frank Wall Street Reform and Consumer Protection Act directed the Board to collect fees equal to the expenses that it estimates are "necessary or appropriate" to carry out its supervisory and regulatory responsibilities.

Fees apply only to certain banks
Specifically, the fees apply to bank holding companies and savings and loan holding companies with at least $50 billion in total assets. The Board will also collect fees from the nonbank financial companies that the Financial Stability Oversight Council designates for Fed supervision.

The assessments are based on the institution's size. As the Board explained in its final rule, "larger companies are often more complex companies, with associated risks that play a large role in determining the supervisory resources necessary in relation to that company."

Implementing a fixed schedule
Under the final rule, each calendar year is an assessment period. The Board will notify each company of the amount of its 2012 assessment shortly after the final rule goes into effect on October 25. The fees are due by December 15. Starting with the 2013 assessment period, the Board will notify companies of their assessment amounts by June 30 of the next year, and payments will be due by September 15.

The Board will transfer any fees it collects to the U.S. Treasury. For the 2012 assessment, the Board expects to collect about $440 million from 70 companies.

August 29, 2013


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