Federal Reserve Board Proposal to Stay Contractual Requirements for GSIBs Published (Fed. Reg.)

The Board of Governors of the Federal Reserve System ("FRB") proposal that certain systemically important bank entities be subject to restrictions regarding the terms of their non-cleared "qualified financial contracts" was published for comment in the Federal Register.

The proposal requires certain banking organizations (and certain of their subsidiaries) to amend contracts for common financial transactions in order to prevent the immediate cancellation of the contracts if firms should enter into bankruptcy or the resolution process.

Comments on the proposal must be submitted by August 5, 2016.

Click here for previous coverage of the proposal in the Cabinet.