US Watchdogs Propose Tighter Oversight of Nonbanks Posing Systemic Risk
The top US financial regulators proposed strengthening tools for addressing threats to financial stability, including changes to Trump-era guidance that had made it difficult to tag nonbank firms as systemically important institutions.
US Treasury Secretary Janet Yellen on Friday announced a proposal by the Financial Stability Oversight Council that would revise the way nonbank firms are designated.
“The existing guidance — issued in 2019 — created inappropriate hurdles as part of the designation process,” Yellen said Friday. “These additional steps are not legally required by the Dodd-Frank Act. Nor are they useful or feasible. Some are based on a flawed view of how financial crises begin and the costs that they impose.”
h/t mark000