§5333 Study of the Effects of Size and Complexity of Financial Institutions on Capital Market Efficiency and Economic Growth

Summary

The Chairperson of the Council must do a study on how rules to reduce big financial risks would affect market efficiency, the financial sector, and U.S. economic growth. The study must estimate benefits and costs of ideas like caps on how big firms can get, limits on how complex or diversified they are, separating business units so failures are easier to resolve, limiting risk transfers between units, requiring backup capital, restricting mixing commercial and financial activities, separating trading or other risky work, and other similar limits. The study must also give recommendations for the best way to design limits like the size, complexity, separation, risk-transfer, and capital rules so they work well and hurt the economy as little as possible. The Chairperson must send a report of findings to Congress no later than 180 days after July 21, 2010, and then every 5 years after that.