Fed wants right to choose which non-banks pose systemic threat

Federal Reserve rule proposes that it will have discretion to determine whether non-bank financial firms come under Financial Stability Oversight Council’s watch on case-by-case basis

federal reserve

The Federal Reserve on Tuesday proposed that it be given a measure of discretionary power to identify which non-bank firms posed a threat to the financial system if they were to fail.

The Dodd-Frank Act, which was passed into law last July, gives the Financial Stability Oversight Council (FSoC), the United States' macroprudential oversight body, the power to oversee significant non-bank holding companies that are "predominantly engaged in financial activities".

The rule proposed by the Fed on

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