On November 12th, Federal Reserve Board Governor Daniel K. Tarullo said that the Federal Reserve Board will soon issue supervisory guidelines regarding dividends by large bank holding companies. That guidance will require banks to consider potential mortgage putback exposures, and the capacity to absorb any consequent losses. The firms will also be asked to show how, even with their proposed capital distributions, they will readily and comfortably meet the Basel III requirements as they come into effect, as well as to accommodate any business model changes that might be necessitated by the Dodd-Frank Act. Tarullo Remarks.