Dodd-Frank Concentration Limit on Financial Institution M&A: Visual Memorandum
Client Memorandum

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The Federal Reserve has issued a proposal to implement the financial sector concentration limit in Section 622 of the Dodd-Frank Act. The concentration limit generally prohibits a financial company from merging or consolidating with, acquiring all or substantially all of the assets of, or otherwise acquiring control of another company if the "liabilities" of the resulting financial company, calculated using methodologies in the proposal, exceed 10% of aggregate financial sector liabilities. Using diagrams, formulas, tables and examples, this visual memorandum illustrates key aspects of the Federal Reserve's concentration limit proposal.