§5362 — Title 12 Banks and Banking | U.S. Code

§5362 Enforcement

Title 12 › Chapter CHAPTER 53— - WALL STREET REFORM AND CONSUMER PROTECTION › Subchapter SUBCHAPTER I— - FINANCIAL STABILITY › Part Part C— - Additional Board of Governors Authority for Certain Nonbank Financial Companies and Bank Holding Companies › § 5362

Last updated Apr 6, 2026|Official source

Summary

A nonbank financial company supervised by the Federal Reserve and its subsidiaries (except any bank subsidiaries) must follow the same enforcement rules that apply to bank holding companies under the law. If the Board of Governors finds that a bank subsidiary or a subsidiary regulated only for certain activities is breaking the Board’s rules or could threaten U.S. financial stability, the Board can write to that subsidiary’s main regulator and ask for enforcement action. The Board must explain its concerns in writing. If that regulator does not take action acceptable to the Board within 60 days of receiving the request, the Board can, after a vote, take the recommended action itself as if the subsidiary were a bank holding company.

Title 12, §5362

Banks and Banking — Source: USLM XML via OLRC

(a)Except as provided in subsection (b), a nonbank financial company supervised by the Board of Governors and any subsidiaries of such company (other than any depository institution subsidiary) shall be subject to the provisions of subsections (b) through (n) of section 1818 of this title, in the same manner and to the same extent as if the company were a bank holding company, as provided in section 1818(b)(3) of this title.

(b)(1)If the Board of Governors determines that a condition, practice, or activity of a depository institution subsidiary or functionally regulated subsidiary of a nonbank financial company supervised by the Board of Governors does not comply with the regulations or orders prescribed by the Board of Governors under this Act, or otherwise poses a threat to the financial stability of the United States, the Board of Governors may recommend, in writing, to the primary financial regulatory agency for the subsidiary that such agency initiate a supervisory action or enforcement proceeding. The recommendation shall be accompanied by a written explanation of the concerns giving rise to the recommendation.

(2)If, during the 60-day period beginning on the date on which the primary financial regulatory agency receives a recommendation under paragraph (1), the primary financial regulatory agency does not take supervisory or enforcement action against a subsidiary that is acceptable to the Board of Governors, the Board of Governors (upon a vote of its members) may take the recommended supervisory or enforcement action, as if the subsidiary were a bank holding company subject to supervision by the Board of Governors.

Notes & Related Subsidiaries

Editorial Notes

References in Text

This Act, referred to in subsec. (b)(1), is Pub. L. 111–203, July 21, 2010, 124 Stat. 1376, known as the Dodd-Frank Wall Street Reform and Consumer Protection Act, which enacted this chapter and chapters 108 (§ 8201 et seq.) and 109 (§ 8301 et seq.) of Title 15, Commerce and Trade, and enacted, amended, and repealed numerous other sections and notes in the Code. For complete classification of this Act to the Code, see

Short Title

note set out under section 5301 of this title and Tables.