Thrift Institutions After Dodd-Frank: The New Regulatory Framework

On July 21, 2011, thrift institutions entered a new regulatory structure, with the transfer of regulatory responsibility for these institutions from the Office of Thrift Supervision ("OTS") to the other federal banking agencies and with other changes under the Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank" or the "Act").¹ Dodd-Frank and related reforms, including new international capital standards, will, over time, shape the operations of savings and loan holding companies ("SLHCs") and their subsidiary thrifts. For the most part, the changes will bring the thrift and bank charters closer together, and SLHCs will be treated nearly the same as bank holding companies ("BHCs"). Reinforcing the similarity in treatment are various amendments Dodd-Frank has made to the same provisions in the thrift statute and the banking statutes. Some important distinctions nevertheless will remain, including a slightly greater range of activities for thrift