Title 12 — Banks and BankingRelease 119-73

§5333 Study of the effects of size and complexity of financial institutions on capital market efficiency and economic growth

Title 12 › Chapter CHAPTER 53— - WALL STREET REFORM AND CONSUMER PROTECTION › Subchapter SUBCHAPTER I— - FINANCIAL STABILITY › Part Part A— - Financial Stability Oversight Council › § 5333

Last updated Apr 6, 2026|Official source

Summary

The Chairperson of the Council must study how rules meant to reduce systemic risk would affect the economy. The study must estimate benefits and costs for how well capital markets work, the financial sector, and national economic growth. It must look at eight kinds of limits, including caps on firm size; limits on complexity or diversification; separating business units; limits on risk transfers; requiring contingent capital or similar tools; limits on mixing commercial and financial activities; segregation of trading or other high‑risk operations; and other structural or activity limits. The study must recommend the best design for the first five types so they work and cause minimal economic harm. The Chairperson must send a report of findings to Congress no later than the end of the 180‑day period beginning on July 21, 2010, and then at least every 5 years after that.

Full Legal Text

Title 12, §5333

Banks and Banking — Source: USLM XML via OLRC

(a)(1)The Chairperson of the Council shall carry out a study of the economic impact of possible financial services regulatory limitations intended to reduce systemic risk. Such study shall estimate the benefits and costs on the efficiency of capital markets, on the financial sector, and on national economic growth, of—

(A)explicit or implicit limits on the maximum size of banks, bank holding companies, and other large financial institutions;

(B)limits on the organizational complexity and diversification of large financial institutions;

(C)requirements for operational separation between business units of large financial institutions in order to expedite resolution in case of failure;

(D)limits on risk transfer between business units of large financial institutions;

(E)requirements to carry contingent capital or similar mechanisms;

(F)limits on commingling of commercial and financial activities by large financial institutions;

(G)segregation requirements between traditional financial activities and trading or other high-risk operations in large financial institutions; and

(H)other limitations on the activities or structure of large financial institutions that may be useful to limit systemic risk.

(2)The study required by this section shall include recommendations for the optimal structure of any limits considered in subparagraphs (A) through (E), in order to maximize their effectiveness and minimize their economic impact.

(b)Not later than the end of the 180-day period beginning on July 21, 2010, and not later than every 5 years thereafter, the Chairperson shall issue a report to the Congress containing any findings and determinations made in carrying out the study required under subsection (a).

Reference

Citations & Metadata

Citation

12 U.S.C. § 5333

Title 12 — Banks and Banking

Last Updated

Apr 6, 2026

Release point: 119-73