News | 03.07.19
Regulators Move to Ease Crisis-Era Levers over Financial Firms
The Financial Stability Oversight Council (FSOC) has proposed raising the standards under which nonbank financial firms would be labeled as"systemically important." The FSOC said it would defer more to the judgment of a company's primary regulator and would seek to identify risky activities in a sector rather than singling out individual firms. Any new designation would also have to pass muster in a cost-benefit analysis. FSOC members said the shift would improve their ability to monitor risks. “Prioritizing an activities-based approach will enable FSOC to minimize competitive distortions resulting from its actions while more broadly addressing potential threats to U.S. financial stability,” Comptroller of the Currency Joseph Otting said.
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