Skip to main content


June 5, 2013

Financial firms face new clampdown

“Led by Treasury Secretary Jack Lew, the 10-member Financial Stability Oversight Council (FSOC) voted during a closed meeting to move forward with plans to designate “an initial set” of undisclosed firms, Treasury spokeswoman Suzanne Elio said.

“Today, the Council took another important step forward by exercising one of its principal authorities to protect taxpayers, reduce risk in the financial system, and promote financial stability,” Lew, the panel’s chairman, said in a written statement.

Under the proposed designation, firms labeled as “systemically important” would be subject to increased new regulations imposed by the Federal Reserve, which traditionally supervises banks.


The long-anticipated action is among the boldest moves to date by the FSOC, which was created by the Dodd-Frank Wall Street reform bill in the aftermath of the 2008 economic crisis.

It is a step toward clamping down on the “shadow banking” world, which was virtually unregulated before the crisis, said Dennis Kelleher, president of Better Markets, a nonprofit group that promotes the public interest in the financial markets.

“Banks and nonbanks have to be regulated, or else we’re going to have another crash,” he said.”


Read full Hill article here

In the News


For media inquiries, please contact us at or 202-618-6433.

Contact Us

For media inquiries, please contact or 202-618-6433.

To sign up for our email newsletter, please visit this page.

This field is for validation purposes and should be left unchanged.

Sign Up — Stay Informed With Our Monthly Newsletter

"* (Required)" indicates required fields

This field is for validation purposes and should be left unchanged.

For media inquiries,

please contact or 202-618-6433.


Help us fight for the public interest in our financial markets, protecting Main Street from Wall Street and avoiding another costly financial collapse and economic crisis, by making a donation today.

Donate Today