Creates Financial Stability Oversight Council and Office of Financial Research, imposes heightened Fed regulation on large bank holding companies and “systemically risky” non bank financial companies.
Establishes a liquidation fund supported by future assessments on large banks, and requires submission of “living wills” detailing how to unwind failing non bank financial companies.
Expands Fed authority to regulate subsidiaries of bank holding companies by repealing “Fed Lite” provisions; sets a 10% concentration limit for bank mergers; and creates the “Volcker Rule” prohibiting banks from proprietary trading, with notable exceptions.
Introduces numerous and significant requirements for derivatives, including mandatory clearing of non-exempt OTC derivatives and limitations on bank involvement in derivative activities.
Authorizes the Financial Stability Oversight Council to designate financial market utilities or payment, clearing, and settlement activities as systemically important.
Imposes risk retention requirements, corporate governance standards, executive compensation requirements, and a study on broker-dealer fiduciary duties.
Establishes the Consumer Financial Protection Bureau, with consumer regulatory authorities consolidated from other banking agencies. Also introduces interchange fee restrictions for debit card payments.
Suspends TARP funding for all funding not initiated before June 24, 2010 and the minimum ratio of reserves to insured deposits must be 1.35 percent by September 20, 2020.
Addresses bailouts of foreign governments and disclosures for columbite-tantalite, cassiterite, gold or wolframite from the Democratic Republic of Congo.
