(Updates with assessment dates in last paragraph.)
Dec. 29 (Bloomberg) -- The Financial Stability Oversight Council, a group of regulators charged with preventing a financial crisis, approved a proposal today outlining how the U.S. Treasury’s assessment fee would be administered.
The proposal, which will be open for public comment for 60 days, determines which companies will be subject to an assessment fee, what are the total expenses necessary to carry out the activities covered by the assessment and how the fee will be calculated.
The rule is part of the sweeping financial-regulation overhaul mandated by Dodd-Frank to prevent a repeat of the market tumult that followed the 2008 bankruptcy of Lehman Brothers Holdings Inc. The fees will help replenish some operating expenses of the FSOC, the Office of Financial Research, the Financial Research Fund and some covered Federal Deposit Insurance Corp. expenses.
The companies subject to the assessment are U.S. bank holding companies with at least $50 billion in total consolidated assets, foreign banking organizations with at least $50 billion in total consolidated assets in U.S. operations and nonbank financial companies required to be supervised by the Federal Reserve Board.
The assessment rate will be announced June 2012 and companies will be billed in early July with the first payment due July 20. Initial assessment amounts will depend on the president’s 2013 fiscal year budget.
--Editors: Gail DeGeorge, Vince Golle
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