In a long-anticipated move, the Treasury Department and Financial Stability Oversight Council have notified three non-bank financial companies that they may be designated as “systemically important” and singled out for increased regulatory scrutiny because their size and scope make insolvency a threat to the broader financial marketplace.
Although not publicly named, American International Group, Prudential Financial, and GE Capital each confirmed their proposed designation as a Systemically Important Financial Institution (SIFI). They would join a list of similarly designated banks that includes Goldman Sachs, JPMorgan Chase, Morgan Stanley, Citigroup, Bank of America, Merrill Lynch, and Wells Fargo.
