Regulatory & Compliance | 11.23.22

Biden Officials To Target Nonbanks for Tougher Oversight

by: Andrew Ackerman

The U.S. government is preparing to target nonbank financial firms with stricter federal oversight. Under the plan, the U.S. Financial Stability Oversight Council would lease or repeal restrictions that sought to limit the regulation of nonbanks, say insiders. The aim, sources said, would be to make it easier to label nonbank firms as systemically important financial institutions, a designation that currently applies only to the nation’s largest banks and imposes extensive oversight in an effort to rein in risks to financial stability. The coming regulatory effort reflects the administration’s intensifying focus on potential systemic risks tied to the likes of asset managers and insurance companies.

Read the full article on Wall Street Journal