Fed Issues Final Rule on Annual Fees
The 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
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
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