The Federal Reserve issued a final rule that will require 70 financial companies to pay a combined total of $440 million for the cost of expanded Fed supervision.
The Fed’s Board of Governors voted 7-0 for the rule that outlines “which companies are charged, estimates the applicable expenses, determines each company’s assessment fee, and bills for and collects the assessment fees,” according to a statement released by the Fed today in Washington. The central bank will levy the assessment every year, and plans in late October to notify the financial companies of their fees for 2012.
The Dodd-Frank Act, signed into law by President Barack Obama in July 2010, expanded the central bank’s power to oversee the largest financial institutions and gave regulators new tools aimed at preventing a repeat of the 2007-2009 financial crisis. The act also required the Fed to assess financial companies for the costs of this expanded oversight.
The 70 banks would pay an average of about $6.3 million under the rule, with larger banks having a higher assessment.
The assessment rule was proposed in April, and the amount of money to be collected is unchanged from the original proposal. The assessments would apply to companies with more than $50 billion in assets, such as Goldman Sachs Group Inc., Bank of America Corp. and JPMorgan Chase & Co.