The recent Dodd-Frank Act rollback includes a number of changes intended to relieve the regulatory burden on financial institutions. One of the most significant of these changes is the increase in the threshold for designating financial institutions as “systemically important financial institutions” from $50 billion to $250 billion in total assets. This is meaningful, as the “systemically important” designation carries with it significant regulatory burdens, which have served as a deterrent to expansion for institutions nearing the threshold. The new legislation, in tandem with other market factors, could result in an uptick in regional bank merger and acquisition transactions.
This article was submitted by Eli M. Isaacs, Faegre Baker Daniels LLP. If you would like to submit content or write an article for the Business Law Section, please email Kara Sikorski at firstname.lastname@example.org.