FSOC to Review a Non-Bank
On March 2 in a closed executive session, the Financial Stability Oversight Council (FSOC) will discuss whether an unnamed nonbank financial institution deserves to remain designated as a systemically important financial institution (SIFI), subject to higher prudential supervision. The meeting notice did not name the nonbank SIFI to be discussed, but only American International Group and Prudential Financial Inc. still have a SIFI designation. U.S. Treasury Secretary Steven Mnuchin will preside over the first meeting of the FSOC of which he is the chair. The FSOC also will receive an update on market developments and discuss the FSOC's upcoming 2017 annual report, which generally is released in the second quarter. The report pinpoints trends that could reduce the nation’s economic stability.
Industry representatives expect the FSOC to take a different direction under President Donald Trump, as Mnuchin, during the confirmation process, endorsed the role of the FSOC as a safeguard to the American economy but suggested the council’s regulatory authority had gone too far.