12 USC 5331 - Mitigation of risks to financial stability

U.S Code last checked for updates: May 03, 2024

§ 5331.

Mitigation of risks to financial stability

(a)

Mitigatory actions

If the Board of Governors determines that a bank holding company with total consolidated assets of $250,000,000,000 or more, or a nonbank financial company supervised by the Board of Governors, poses a grave threat to the financial stability of the United States, the Board of Governors, upon an affirmative vote of not fewer than ⅔ of the voting members of the Council then serving, shall—

(1)

limit the ability of the company to merge with, acquire, consolidate with, or otherwise become affiliated with another company;

(2)

restrict the ability of the company to offer a financial product or products;

(3)

require the company to terminate one or more activities;

(4)

impose conditions on the manner in which the company conducts 1 or more activities; or

(5)

if the Board of Governors determines that the actions described in paragraphs (1) through (4) are inadequate to mitigate a threat to the financial stability of the United States in its recommendation, require the company to sell or otherwise transfer assets or off-balance-sheet items to unaffiliated entities.

(b)

Notice and hearing

(1)

In general

(2)

Hearing

(3)

Decision

(c)

Factors for consideration

(d)

Application to foreign financial companies

The Board of Governors may prescribe regulations regarding the application of this section to foreign nonbank financial companies supervised by the Board of Governors and foreign-based bank holding companies—

(1)

giving due regard to the principle of national treatment and equality of competitive opportunity; and

(2)

taking into account the extent to which the foreign nonbank financial company or foreign-based bank holding company is subject on a consolidated basis to home country standards that are comparable to those applied to financial companies in the United States.

(Pub. L. 111–203, title I, § 121, July 21, 2010, 124 Stat. 1410; Pub. L. 115–174, title IV, § 401(c)(1)(C), May 24, 2018, 132 Stat. 1358.)

cite as: 12 USC 5331