The Federal Reserve Begins Regulating Thrift Holding Companies


The Federal Reserve Board took its first steps last week into the world of regulating savings and loan holding companies. Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Office of Thrift Supervision, the primary regulator for savings and loan associations and their holding companies, will cease to be an independent federal agency on July 21, 2011. On that date, the OTS will become part of the Office of the Comptroller of the Currency, the current regulator of national banks, and all regulation of savings and loan associations – or "thrifts" as they are sometimes called – will be under the auspices of the OCC.

However, the Dodd-Frank Act also mandated that regulation and supervision of savings and loan holding companies (SLHCs), previously within the purview of the OTS, be transferred to the Federal Reserve Board, which regulates and supervises bank holding companies (BHCs). On April 15, 2011, the Federal Reserve issued its first pronouncement in this area by seeking comment to a proposed Supervisory Guidance by which the Federal Reserve proposes to apply certain elements of its consolidated supervisory program for BHCs to SLHCs. This is consistent with the Federal Reserve’s long-standing concern about capital standards, liquidity and risk management at BHCs and with its oft-stated goal that a BHC and its nondepository subsidiaries should be a source of strength for, and not threaten the safety and soundness of, its depository banks.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Manatt, Phelps & Phillips, LLP | Attorney Advertising

Written by:


Manatt, Phelps & Phillips, LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.