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The House Financial Services Committee on Thursday approved an amendment raising the threshold for firms paying into a federal systemic risk fund from $10 billion in assets to $50 billion.
The amendment is part of a broader bill to create a council that would wind down large institutions that pose a systemic risk to the economy.
The amendment, offered by Rep. Brad Sherman (D., Calif.), gives regulators the authority to assess payments on hedge funds with $10 billion or more in assets.
Committee members, including Chairman Barney Frank (D., Mass.), had proposed $10 billion in assets as the threshold for all financial firms to pay into the fund that would help regulators mitigate economic damage from failing institutions.
-By Fawn Johnson, Dow Jones Newswires; 202-862-9263; fawn.johnson@dowjones.com
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