U.S. Bancorp: Fed will not require meeting Category II requirements by end 2024

In a regulatory filing, U.S. Bancorp stated: “As a bank holding company with over $100 billion in total consolidated assets, the Company is subject to the Dodd-Frank Act’s enhanced prudential standards, as applied to ‘Category III’ institutions under the federal banking regulators’ rules that tailor how enhanced prudential standards apply to large U.S. banking organizations. In connection with the Company’s December 2022 acquisition of MUFG Union Bank, N.A., the Company committed to submit to the Federal Reserve quarterly implementation plans for complying with requirements associated with a ‘Category II’ banking organization, i.e. institutions with $700 billion or more in total assets or $75 billion or more in cross-jurisdictional activities. The Company also committed to meet requirements applicable to Category II banking organizations by the earlier of (i) the date required under the Tailoring Rules; and (ii) December 31, 2024, if the Federal Reserve notifies the Company by January 1, 2024, that the Company must comply with those requirements. On October 16, 2023, the Federal Reserve provided notification that the Company has been released from both of these commitments. Accordingly, consistent with the standards applicable to other Category III institutions (a) the Federal Reserve will not require the Company to meet Category II requirements by December 31, 2024 (unless otherwise obligated to do so by regulation) and (b) the Company is no longer required to submit quarterly implementation plans for complying with the requirements associated with a Category II banking organization.”