Lew Says Risk Council Will Consider Changes to SIFI Process
Oct. 6 (Bloomberg) — U.S. Treasury Secretary Jacob J. Lew said a council of financial regulators will consider changes to how it evaluates companies for systemically important designation.
The Financial Stability Oversight Council “will begin to consider possible changes in the coming months” after receiving feedback from the financial industry and others about its designation process, Lew said at an FSOC meeting at the Treasury in Washington today.
Lew also said the council had agreed to give a non-bank financial company an oral hearing. MetLife Inc., the largest U.S. life insurer, said Oct. 3 it is challenging the council’s finding that it is systemically important and should be subjected to Federal Reserve oversight.
Financial industry executives and Republican lawmakers have said the FSOC hasn’t been transparent enough in its evaluation of non-bank companies for the systemically important designation.
To contact the reporter on this story: Ian Katz in Washington at ikatz2@bloomberg.net To contact the editors responsible for this story: Chris Wellisz at cwellisz@bloomberg.net Brendan Murray
