Client Alert
| March 30, 2009
Treasury Proposes Special Regulation for Systemically Important Institutions
The U.S. Treasury has outlined how it proposes to reorganize financial regulation. Among the proposals sketched in the outline is enhanced supervision for companies determined to be systemically important. Enhanced supervision would be designed to satisfy a number of characteristics:
- Regulation would not be voluntary;
- The regulated institutions could not choose their regulators; and
- The institutions to be regulated would be selected based on their interconnectedness with the rest of the financial system, their size and leverage, the degree to which they depend on short-term funding, and the importance of their roles as providers of credit and liquidity.
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This memorandum is intended only as a general discussion of these issues. It is not considered to be legal advice. We would be pleased to provide additional details or advice about specific situations. For additional information on this important topic, please feel free to call upon your Dewey & LeBoeuf relationship partner. No part of this publication may be reproduced, in whole or in part, in any form, without our prior written consent.
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