Financial Sector M&A Update: Federal Reserve Adopts Concentration Limit Rules for Financial Companies
The Federal Reserve has approved final rules implementing the “concentration limit” under Section 622 of the Dodd-Frank Act. This statutory limit restricts financial companies from engaging in certain acquisitions if the total consolidated liabilities of the acquirer would, on a pro forma basis, exceed 10% of the aggregate consolidated financial sector liabilities (a figure that would be published by the Federal Reserve by July 1 of each year).