and have sufficient levels of capital to operate through times of stress, as defined by the federal reserve ’ s supervisory stress scenario. the program enables us to make a quantitative and qualitative assessment of the resilience and capital planning abilities of the largest banking firms on an annual basis and to limit capital distributions for firms that exhibit weaknesses. with regard to liquidity resiliency, under the federal reserve ’ s comprehensive liquidity analysis and review ( clar ), liscc firms are subject to a comprehensive review of their liquidity positions and liquidity risk management, including internal stress - testing practices. firms with weak liquidity positions or practices are directed to improve those practices and augment their liquidity positions as needed. similar to ccar, clar is designed to ensure that liscc firms have rigorous, forward - looking liquidity stress testing and risk - management practices that account for unique risks, and that the liscc firms maintain sufficient liquidity to continue to operate through a period of acute stress. the program allows the federal reserve to compare the range of practices across firms and form a view on liquidity vulnerabilities and funding concentrations in the system as a whole. unlike ccar, which currently applies to all firms with $ 50 billion or more in total assets, only firms within the liscc portfolio are required to participate in clar. liscc firms are also subject to an annual review of their recovery and resolution preparedness. the program evaluates progress in implementing operational capabilities and legal entity rationalization that would facilitate recovery or resolution under a range of scenarios and provides the federal reserve with the ability to compare progress on recovery the foreign banking organizations whose u. s. operations are currently supervised as part of the liscc program are barclays plc, credit suisse group ag, deutsche bank ag, and ubs ag. the firms designated by the fsoc for supervision by the federal reserve are american international group, inc. ; general electric capital corporation, inc. ; metlife, inc. ; and prudential financial, inc. further information on the liscc, including a full list of the supervised firms, is available on the board ’ s website at www. federalreserve. gov / bankinforeg / large - institution - supervision. htm. bis central bankers ’ speeches and resolution planning across firms. we are working with the fdic to evaluate the gsibs ’ most recent resolution plans, which were submitted in

see 12 u. s. c. § 1820 ( d ). the amendment would raise this asset cap to $ 500 million, thereby potentially allowing approximately an additional 1, 100 institutions to qualify for an extended examination cycle. 6. permit the board to grant exceptions to the attribution rule concerning shares held by a trust for the benefit of a bank holding company or its shareholders or employees the amendment would allow the board, in appropriate circumstances, to waive the attribution rule in section 2 ( g ) ( 2 ) of the bank holding company act ( bhc act ). this attribution rule currently provides that, for purposes of the bhc act, a company is deemed in all circumstances to own or control any shares that are held by a trust ( such as an employee benefit plan ) for the benefit of the company or its shareholders or employees. the amendment would allow the board to waive the rule when, for example, the shares in question are held by a 401 ( k ) plan that is widely held by the bank holding company ’ s employees and the bank holding company does not have the ability to control the shares held by the plan. 7. modification of the cross - marketing restrictions applicable to merchant banking and insurance company investments amendment allows the depository institution subsidiaries of a financial holding company to engage in cross - marketing activities with portfolio companies that are held under the merchant banking authority in the gramm - leach - bliley act ( glb act ) to the same extent as such activities are currently permissible for portfolio companies held under the glb act ’ s insurance company investment authority. the amendment also would allow the depository institution subsidiaries of a financial holding company to engage in cross - marketing activities with a portfolio company held under either the merchant banking or insurance company investment authority if the financial holding company does not control the portfolio company. 8. allow insured banks to engage in interstate merger transactions with savings associations and trust companies the amendment would allow an insured bank to directly acquire, by merger, an insured savings association or uninsured trust company in a different home state without first converting the target savings association or trust company into an insured bank. as under current law, the insured bank would have to be the survivor of the merger. 9. authorize member banks to use pass - through reserve accounts amendment permits banks that are members of the federal reserve system to count as reserves the deposits in other banks that are “ passed through ” by those banks to the