WASHINGTON — The Federal Reserve Board on Monday issued a proposal that would impose a fee on the biggest bank holding companies to cover expenses related to its supervisory duties.
The central bank estimates that at least 70 financial institutions could face such charges, bringing in a total of at least $440 million in fees.
No payments will be due until the rule is finalized and all fees would be transferred to the Treasury Department.
The proposal is required under the Dodd-Frank Act and will apply to bank holding companies and savings and loan companies with at least $50 billion of assets, as well as any nonbank financial companies that are designated as systemically risky by the Financial Oversight Council.
"The Dodd-Frank Wall Street Reform and Consumer Protection Act directs the Federal Reserve to collect assessments, fees, or other charges equal to the expenses the Board estimates are necessary and appropriate to carry out its supervisory and regulatory responsibilities for these large financial companies," according to the Fed's press release.
In its proposal, the Fed, which is responsible for overseeing the largest banks in the country, says it would determine which companies are assessed and what the total expense would be to carry out its supervisory responsibilities for those firms.
The plan also covers how the Fed would determine the amount of each company's assessment and the bill and collection for those fees.
Banks would face fees on an annual basis and would be alerted to such assessments no later than July 15. Payments would be due by Sept. 30.