Fed Extends Comment Period on Rules for Foreign Banks in U.S.

The Federal Reserve Board extended the comment period on a proposed rule that will shape capital, leverage, liquidity and risk-management standards for the largest foreign banks and financial institutions that fall under its supervision.

The Fed Board’s extension, to April 30 from a previous March 31 deadline, focuses on sections 165 and 166 of the Dodd- Frank Act.

“The Board has received a request from the public for an extension of the comment period,” the Fed said in a press release today. “The Board believes that the additional period for comment will facilitate public comment on the provisions.”

Fed officials are putting in place a new rule that will require foreign banking organizations with significant operations in the U.S. to set up holding companies that will be supervised by the U.S. central bank.

To contact the reporter on this story: Craig Torres in Washington at ctorres3@bloomberg.net

To contact the editor responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net

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