August 29, 2014

FSOC talks nonbank firm oversight

Sept. 3, 2014 – The Financial Stability Oversight Council will meet tomorrow to discuss the possibility of stricter oversight for nonbank financial firms such as the insurer Metlife Inc., according to Reuters.
FSOC already designated insurers Prudential Financial Inc., American International Group Inc., and General Electric's financial services unit as "systematically risky" – in other words, "too big to fail" without devastating global markets.
The firms to be discussed have not been officially named, but Reuters reports that the council "recently took a procedural step to pave the way for a vote on Metlife."
The FSOC, chaired by Treasury Secretary Jack Lew, includes as voting members the top regulators at NCUA, the Federal Reserve Board, FDIC, Office of the Comptroller of the Currency, CFPB, Securities and Exchange Commission and Commodity Futures Trading Commission.
NAFCU has urged Lew to encourage better coordination of rulemaking among federal financial institution regulators and sharing of information about domestic financial services policy development, examinations, reporting requirements and enforcement since the council's inception.