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Treasury announces rule to make banks pay for new regulatory offices

Large banks may have to start paying the Treasury Department in order to help it cover the costs of two new offices charged with measuring threats to financial markets.

In a proposal released on Thursday, Treasury officials announced their intent to apply a fee to the nation’s larger banks for both the Financial Stability Oversight Council and the Office of Financial Research, according to ChicagoTribune.com.

Both of the new offices were created by last year’s Dodd-Frank financial oversight law, which mandates that the government bill banks for their operations.

The FSOC was created in order to help financial regulators such as the Federal Reserve and the Securities and Exchange Commission work more closely together to predict and prepare for problems in the market.

The research office is charged with collecting and analyzing financial market data for the council.

If approved, the rule will go into effect starting in the middle of 2012.

The rule’s current language specifies that banks with more than $50 billion in assets would be forced to pay a flat rate fee according to an institution’s total consolidated assets twice a year, ChicagoTribune.com reports.

The specific amount will not be announced until President Obama releases his fiscal 2013 budget proposal early next year.

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