Guidance for Consolidated Supervision of BHCs and Combined U.S. Operations of FBOs
October 16, 2008
Circular No. 12008

The Federal Reserve has issued enhanced guidance that refines and clarifies its programs for the consolidated supervision of bank holding companies and the combined U.S. operations of foreign banking organizations (FBOs). The Federal Reserve also released guidance clarifying supervisory expectations with respect to firmwide compliance risk management.

While initiation of these efforts predated the recent period of considerable strain in the financial markets, these enhanced approaches to consolidated supervision and firmwide compliance risk management emphasize several elements that should support a more resilient financial system.

The guidance describes how Federal Reserve staff develops an understanding and assessment of the consolidated operations of a bank holding company and the U.S. operations of an FBO through continuous monitoring activities, discovery reviews, and testing activities, as well as through interaction with, and reliance to the fullest extent possible on, other relevant supervisors and functional regulators.

See the press release for full details.

Press release offsite

SR Letter 08-8/CA Letter 08-11 offsite
SR Letter 08-9/CA Letter 08-12 offsite