FSOC Adopts Rules for Determination of Systemically Important Non-Banks

May 17, 2012

by: Jerry Blanchard

The Financial Stability Oversight Council has adopted a final rule that went into effect on May 11, 2012 describing the framework that the Council intends to use to determine whether a non-bank financial company is systemically important to the US financial system and whose failure could pose a threat to the U.S. financial stability.  The consequences of being designated a systemically important company is that the Federal Reserve is given the authority to impose risk based capital requirements, leverage limits, liquidity requirements, resolution plans, concentration limits, a contingent capital requirement; enhanced public disclosures; short-term debt limits; and overall risk

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