Daily News: August 19, 2013

Fed to Collect $440MM From Top 70 Financial Companies

The Federal Reserve said it will collect about $440 million from 70 financial institutions as annual assessment fees for the Fed’s supervision and regulation for the 2012 assessment period.

The Fed said the Dodd-Frank Wall Street Reform and Consumer Protection Act directs the Fed board to collect assessment fees equal to the expenses it estimates are necessary or appropriate to supervise and regulate bank holding companies and savings and loan holding companies with $50 billion or more in total consolidated assets and nonbank financial companies designated by the Financial Stability Oversight Council for supervision by the Federal Reserve.

The final rule outlines how the board determines which companies are charged, estimates the applicable expenses, determines each company’s assessment fee and bills for and collects the assessment fees.

The Fed said under the final rule, each calendar year is an assessment period. For the 2012 assessment period, the first year for which assessment fees will be collected, the board will notify each company of the amount of its assessment when the rule becomes effective in late October. Payments for the 2012 assessment period will be due no later than December 15, 2013. The board estimates it will collect about $440 million from 70 companies for the 2012 assessment period.

Beginning with the 2013 assessment period, the Federal Reserve will notify each company of the amount of its assessment fee no later than June 30 of the year following the assessment period. Payments will be due by September 15. The Federal Reserve will transfer the assessment fees it collects to the U.S. Treasury.

To read the Fed’s Final Rule document click here.

To read a related Wall Street Journal article (subscription required) click here.