Stakeholders have been offered more time from the Federal Reserve Board to weigh in on the proposal that would overhaul the way the U.S. central bank supervises foreign banks operating within the U.S.
On Friday, the Board said it "extended the comment period to allow interested persons more time to analyze the issues and prepare their comments," in a press release. The original comment deadline of March 31 has been pushed back to April 30.
"The shift in supervisory approach has long been expected since the financial crisis revealed significant flaws in the current regulatory process. Many had been expecting such changes given the failure of Lehman Brothers, which had a substantial broker-dealer subsidiary in the U.K., and severe distress at certain foreign banks with operations in the U.S.," writes American Banker's Donna Borak.
Congress required regulators under the 2010 Dodd-Frank Act to reform the way they supervised foreign banks operations with $50 billion or more of globally consolidated assets and a presence within the U.S.
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