Legal Definitions - Dodd-Frank: Title VI - Improvements to Regulation of Bank and Savings Association Holding Companies and Depository Institutions

Title VI of the Dodd-Frank Act is a law that aims to regulate and supervise bank holding companies, savings association holding companies, and depository institutions to prevent them from posing a threat to the financial stability of the United States. It includes several provisions that require these institutions to be well capitalized and well managed, and it introduces the "Volcker Rule," which prohibits banking entities from engaging in proprietary trading.

• Examination Improvements: Title VI requires bank holding companies and savings and loan holding companies to inform the Federal Reserve of any financial, operational, or other risks they may pose to the United States' financial stability during examinations.
• Mergers & Acquisitions: Title VI requires the Federal Reserve to consider whether a proposed acquisition of a bank, a merger, or consolidation would result in greater or more concentrated risks to the stability of the United States banking or financial system.
• Volcker Rule: Title VI prohibits banking entities from engaging in proprietary trading, or from acquiring or retaining any equity, partnership, or other ownership interest in or sponsorship of a hedge fund or a private equity fund.

These examples illustrate how Title VI aims to regulate and supervise bank holding companies, savings association holding companies, and depository institutions to prevent them from posing a threat to the financial stability of the United States. By requiring these institutions to be well capitalized and well managed, and by prohibiting them from engaging in certain activities, Title VI aims to protect the financial system from potential risks.