The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank Act”) transfers supervisory functions related to savings and loan holding companies (“SLHCs”) and their non-depository subsidiaries to the Board of Governors of the Federal Reserve System (“Board”) on July 21, 2011 (“Transfer Date”). On April 15, 2011, the Board proposed for comment a notice (“Notice”) of its intention to apply its consolidated supervisory program currently applicable to bank holding companies (“BHCs”), as enhanced by the Dodd-Frank Act, to SLHCs effective on the Transfer Date. Public comments on the Notice are due by May 23, 2011.
The implications of the Notice should not be underestimated by SLHCs, because it contemplates an immediate integration of SLHCs into the Board’s BHC consolidated supervision program, including virtually all aspects of BHC--like regulation and supervision. As a result, SLHCs will be subject to new capital, source of strength, holding company exam rating system, and other existing (and new) BHC regulatory requirements.