Bank/Thrift Supervision   |    Capital    |    CFPB    |    Deposit Insurance    |    Interchange    |    Mortgage Finance
Municipal Advisors   |    OCC-OTS Merger   |    Preemption    |    QM - QRM    |    Swaps   |    Volcker Rule    |    Full Topics List
Qualified Mortgage - Qualified Residential Mortgage
Consumer Financial Protection Bureau - CFPB
Bank/Thrift Holding Company Supervision
Deposit Insurance
Mortgage Finance
Municipal Advisors
OCC-OTS Merger
Volcker Rule
Corporate Governance
Financial Stability Oversight Council (FSOC)
Office of Financial Research (OFR)
Systemic Risk
Supervision and Oversight
Payment, Clearing and Settlement
Prudential Supervision
Trust & Securities
Asset-Backed Securities
Resolution Authority

Friday, December 19, 2014

FSOC Designates Nonbank Financial Company for Enhanced Supervision

The FSOC announced that it voted to designate a nonbank financial company to consolidated supervision by the Board of Governors of the Federal Reserve System and enhanced prudential standards. Treasury Secretary Jacob J. Lew, Chairperson of the Council said:

After a year and a half of extensive and in-depth analysis — including significant engagement with the company — the Council has determined that material financial distress at MetLife could pose a threat to U.S. financial stability. Designation of a nonbank financial company is a critical tool for the Council to address potential threats to U.S. financial stability. Consistent with its mandate, the Council remains focused on protecting the broader economy from the types of risk that contributed to the financial crisis.

The Council’s designation is the product of a three-stage process, during which the Council (1) applies uniform quantitative thresholds to identify nonbank financial companies for further evaluation, (2) analyzes the companies using a broad range of information available to the Council primarily through existing public and regulatory sources and (3) contacts each company that the Council believes merits further review to collect information directly from the company that was not otherwise available in the prior stages. Each nonbank financial company that is reviewed in Stage 3 is immediately notified that it is under consideration and is provided an opportunity to submit written materials related to the Council’s consideration of the company for a proposed designation.

Read the FSOC press release.

No comments:

Post a Comment

Please read our comment policy before making a comment.