Fed Exempts Securitization in Rule on Bank Concentration Limits
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The Federal Reserve will let banks continue securitization activities after reaching a new limit barring them from acquisitions that push their market share beyond 10 percent of all financial-company liabilities.
The Fed’s final rule on bank concentration limits is “substantially similar” to a proposal released in May, the central bank said in a statement today. If a financial company reaches the 10 percent threshold set by the Dodd-Frank Act it can’t acquire another company under merchant banking authority, the Fed said.