US Federal Reserve Board Announces Annual Adjustment To The Asset-Size Threshold In Regulation I

Author:Shearman & Sterling LLP
Profession:Shearman & Sterling LLP

On February 22, 2017, the US Federal Reserve Board announced the annual adjustment to the asset-size threshold in Regulation I, which determines the dividend rate that certain member banks earn on their Federal Reserve Bank stock. The updated total consolidated asset threshold is $10,122,000,000.

The Fixing America's Surface Transportation (FAST) Act of 2015 provides that depository institution stockholders with total consolidated assets above the asset-size threshold shall receive a dividend on paid-in capital stock equal to the lesser of (i) 6 percent or (ii) the most recent 10-year Treasury auction rate prior to the dividend...

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