Merger limits proposed. In accordance with Section 622 of the Dodd-Frank Act, the Federal Reserve Board issued a proposed rule which would prohibit a financial company from combining with another company if the ratio of the resulting financial company’s liabilities would exceed 10 percent of the aggregate consolidated liabilities of all financial companies. Comments should be submitted by July 8, 2014. (5/8/2014) Federal Reserve Board press release.

FSOC annual report. The Financial Stability Oversight Council published its 2014 annual report to Congress. The report noted the continued risks posed by weaknesses in the short-term wholesale funding markets and the moral hazard posed by large, interconnected financial institutions. (5/7/2014) Treasury Department Press Release.