“Federal regulators moved closer to designating more financial institutions systemically significant on Tuesday, by voting to adopt rules defining firms as risky when they top size and leverage thresholds.”

“The Financial Stability Oversight Council, made up of bank and securities regulators, is charged with designating which nonbank institutions are considered ‘systemically important’ to the financial system and subjecting them to gradually increasing capital levels, lower leverage limits and more liquidity.”

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“The public-interest group Better Markets points out that the statute did not require a minimum of $50 billion in assets for designation and that such a restriction will exclude ‘important shadow banking entities’ from consideration.”

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Read full MarketWatch article here.