All FSOC articles

  • fsoc-risk

    Regulators’ top risk cop assailed by reform-bent critics


    The Financial Stability Oversight Council was created to expose and mitigate systemic risks to the U.S. financial system. Its critics are winning the long-simmering battle to redefine its efforts.

  • Mnuchincrop

    FSOC seeks changes to nonbank designation guidance


    The FSOC has released proposed interpretive guidance regarding nonbank financial firm SIFI designations. It would implement an “activities-based approach” to identifying potential risks to financial stability and provide an “off-ramp” to designated firms.

  • Blog post

    Prudential escapes SIFI tag, enhanced regulatory oversight


    The FSOC has reversed a previous determination that material financial distress at Prudential Financial could pose a threat to U.S. financial stability.

  • Blog post

    FSOC lets AIG shed ‘systemically important’ status


    The Financial Stability Oversight Council has de-designated AIG as a systemically important financial institution, a classification that had placed heightened prudential standards and regulatory expectations upon the non-bank.

  • Blog post

    Trump targets FSOC, reviews ‘fiduciary duty’ rule


    President Donald Trump’s regulatory rollback will include an FSOC review of financial rules and a review of the Labor Department’s “fiduciary duty” rule that could ultimately lead to its demise. Joe Mont explores.

  • Blog post

    FSOC vs. MetLife legal battle resumes in October


    Round two of the fight between insurance giant MetLife and the government over its status as a systemically important financial institution heads to the U.S. Court of Appeals for the D.C. Circuit on Oct. 24 for oral arguments. Joe Mont reports.

  • Blog post

    GE Capital breaks free of its SIFI designation


    GE Capital Global Holdings is no longer a threat to financial stability,says the Financial Stability Oversight Council. While MetLife prevailed in a lawsuit to shed its designation as a non-bank systemically important financial institution, GE Capital did so by working within the agencies appeals framework. Joe Mont reports.

  • Blog post

    FSOC releases sixth annual report, risk assessment


    The Financial Stability Oversight Council has approved and released its 2016 annual report. Delivered each year to Congress, it addresses a range of issues, including financial market and regulatory developments and potential emerging threats to financial stability. Joe Mont explores.

  • Article

    Fed proposes more ‘bank-like’ capital & risk standards for insurance companies


    Insurance companies are increasingly targeted with bank-like regulation and oversight. The latest development: proposals by the Federal Reserve’s Board of Governors for new capital and risk management standards for systemically important insurance companies and those that own a bank or thrift. Joe Mont reports.

  • Blog post

    FSOC turns focus to asset management


    Bringing a measure of transparency to its often secretive deliberations, the Financial Stability Oversight Council has released a public update on its review of potential risks to U.S. financial stability. Topping that list, beyond its controversial designations of banks and nonbanks as systemically important, are concerns about asset management products ...

  • Blog post

    GE Capital seeks to shed ‘too big to fail’ status


    One day after a federal judge revoked MetLife’s designation as a “systemically important financial institution” by the Financial Stability Oversight Council, GE—specifically the wholly owned subsidiary GE Capital—is requesting that it also be able to shed the classification and increased regulatory demands that come with being “too big to fail.” ...

  • DancingPeanutsGang2
    Blog post

    Judge sides with MetLife in battle over SIFI designation


    A federal judge has sided with insurance giant MetLife in its effort to remove the “systematically important financial institution” designation placed upon it in 2014 by the Financial Stability Oversight Council. The ruling is unlikely to mark the end of the battle as the government has the option of either ...

  • Blog post

    House Republicans Target FSOC With Legislative Agenda


    The House Financial Services Committee has approved a slate of bills at one of its favorite bureaucratic targets, the Financial Stability Oversight Council. The FSOC Improvement Act, if adopted, would allow financial firms to eliminate risk through changes to their business model before being designated as Systemically Important Financial Institutions. ...

  • Blog post

    Insurers Brace for International Capital Standards


    The International Association of Insurance Supervisors seeks to impose new capital standards upon systemically important insurance companies, echoing mandates from the Basel Committee on Banking Supervision. The effort has irked the Financial Services Roundtable, which is urging U.S. regulators to oppose it. Who enforces any new standards is also unclear. ...

  • Blog post

    GE, AIG Unable to Shed SIFI Status at Annual Review


    What will it take to be de-designated as a systemically important financial institution by the Financial Stability Oversight Council? We may need to waitlonger for the answer to that burning question as, despite a restructuring that will slice away most of its financing arm, General Electric was not yet able ...

  • Blog post

    Appellate Court Allows Constitutional Challenge to CFPB


    A small Texas bank scored a potentially big victory last week when a federal appeals court ruled that it has standing to challenge the constitutionality of the Consumer Financial Protection Bureau. The decision, overturning a 2013 district court ruling, rejected a similar challenge to the Financial Stability Oversight Council and ...

  • Blog post

    IMF: Regulators Must Focus on Mutual Funds, Insurance Companies


    The thesis of a new report from the International Monetary Fund is hardly shocking. Despite progress, the U.S. must finish the work begun on financial reforms, it concludes. More telling is an assessment of what new areas systemic risk has bubbled into and how regulators should respond. Greater attention ...

  • Blog post

    MetLife Challenges FSOC Secrecy with Document Demand


    As it sues the Financial Stability Oversight Council in federal court over its designation as a Systemically Important Financial Institution, MetLife is demanding that its lawyers have access to nearly 500 pages of redacted and unreleased agency documents, many of them otherwise shielded because of references to other companies. More ...

  • Article

    FSOC Report Offers Tea Leaves for Future Regulatory Focus


    What are the top threats to the U.S. financial system? In a new report, the Financial Stability Oversight Council cites cyber-security, financial innovations, and high-frequency trading among the problems regulators must address. Critics fret, however, that the agency wants “to get rid of the capital markets and replace everything with ...

  • Blog post

    MetLife Makes a Federal Case of its SIFI Designation


    MetLife has filed a lawsuit to undo its designation as a non-bank systemically important financial institution by the Financial Stability Oversight Council. Although CEO Steven Kandarian said the company had hoped to avoid litigation, it marks the first time a too-big-to-fail designation has been challenged before a federal judge.