U.S. Federal Reserve System
|U.S. Federal Reserve System|
The U.S. Federal Reserve System ("the Fed") is the central bank of the United States. It was established by the Federal Reserve Act, which was signed by President Woodrow Wilson on December 23,1913.<ref>Federal Reserve History. Federal Reserve. Retrieved on February 1, 2011.</ref>
The Fed is composed of the five-member Board of Governors of the Federal Reserve System ("Federal Reserve Board") and the 12 Federal Reserve Banks. Voting members consist of:
- All five members of the Board of Governors;
- the president of the Federal Reserve Bank of New York; and
- presidents of four regional Federal Reserve banks, who serve rotational one-year terms.
Ben Bernanke has served as Chairman since 2006, when he replaced Alan Greenspan, who had served as Chairman since 1987.
- 1 The Federal Reserve and the Dodd-Frank Act
- 2 Federal Reserve Final Rule: Annual Stress Tests
- 3 Federal Reserve Proposed Rule: Enhanced Prudential Standards and Early Remediation Requirements for Foreign Banking Organizations and Foreign Nonbank Financial Companies
- 4 Federal Reserve Proposed Rule: Enhanced Prudential Standards and Early Remediation Requirements for Covered Companies
- 5 References
The Federal Reserve and the Dodd-Frank Act
The Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act) authorizes or requires the Federal Reserve to create rules in several of areas of financial regulation. Many of the rulemakings were done in conjunction with other bank regulators such as the FDIC, Office of the Comptroller of the Currency and the Federal Housing Finance Agency. Such rulemakings can be found under the heading Prudential Regulators. Other key rulemakings can be found below.
Additionally, several other topics within Dodd-Frank involve the Federal Reserve, including:
- The Financial Stability Oversight Council (FSOC)
- The Orderly Liquidation Authority (OLA)
- Basel III
- The Volcker Rule
On October 9, 2012, the Federal Reserve Board, approved a final rulemaking implementing Section 165 of the Dodd-Frank Act, which requires companies that fall under the jurisdictions of Prudential Regulators to conduct annual stress tests.
The Federal Reserve will begin conducting supervisory stress tests under the final rules this fall for the 19 bank holding companies that participated in the 2009 Supervisory Capital Assessment Program and subsequent Comprehensive Capital Analysis and Reviews. The final rules also require these companies and their state-member bank subsidiaries to conduct their own Dodd-Frank company-run stress tests this fall, with the results to be publicly disclosed in March 2013.<ref>FDIC Approves Final Rules Regarding Large Bank Stress Tests and Large Bank Assessment Pricing and Releases An Update on the DIF Projections. FDIC. Retrieved on October 10, 2012.</ref>
Federal Reserve Proposed Rule: Enhanced Prudential Standards and Early Remediation Requirements for Foreign Banking Organizations and Foreign Nonbank Financial Companies
On December 14, 2012, the Federal Reserve approved a proposed rule that would require foreign banking organizations with a significant U.S. presence to create an intermediate holding company over their U.S. subsidiaries, and maintain stronger capital and liquidity positions in the United States. The proposal is part of the implementation of Title I of the Dodd-Frank Act.
The proposal generally applies to foreign banking organizations with a U.S. banking presence and total global consolidated assets of $50 billion or more. More stringent standards are proposed for foreign banking organizations with combined U.S. assets of $50 billion or more. <ref>Press Release: Enhanced Prudential Standards. Board of Governors of the Federal Reserve. Retrieved on December 18, 2012.</ref>
Federal Reserve Proposed Rule: Enhanced Prudential Standards and Early Remediation Requirements for Covered Companies
On December 20, 2011, the Board of Governors of the Federal Reserve issued a proposed rule on enhanced prudential standards and early remediation requirements. This rule would apply to all U.S. bank holding companies with consolidated assets of $50 billion or more and any nonbank financial firms that may be designated by the Financial Stability Oversight Council as systemically important companies.