“Top federal regulators are expected to vote Monday on making several non-bank financial firms subject to stricter government oversight and financing requirements because they could pose an economic threat in the event of a new financial crisis, according to a person familiar with the issue.
The anticipated decision by the Financial Stability Oversight Council (FSOC) would be the first designation of firms as being so “systemically important” that they require Federal Reserve oversight, according to the person, who was not authorized to comment publicly because of the sensitive nature of the Monday closed-door session.
Dennis Kelleher, CEO of Better Markets, a non-profit that has pressed for stricter financial regulation, said it appeared likely, if not certain, the financial council would approve at least three designations during Monday’s session.
“While we and others have been critical that it has taken FSOC too long — almost five years since the financial crisis — they are over-processing everything out of an abundance of caution and an attempt to avoid lawsuits,” said Kelleher. “But they want to move on it before the actual fifth-year anniversary, and time is running out.”
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