02.08.24

Yellen Defends New FSOC Guidance Easing Regulators' Ability To Oversee Nonbanks

by: Courtney Degen

U.S. Treasury Secretary Janet Yellen, testified before a Senate committee on Feb. 8, defending new guidance that eases the Financial Stability Oversight Council's (FSOC) ability to designate nonbank financial institutions as systemically important. Pointing to the financial crisis of 2008, Yellen said, "There are nonbanks whose failure can pose tremendous spillovers and risks to the entire financial system, and when the council identifies such a firm, designation may be the appropriate way to handle that."

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