Realism or deregulation? Fed sidelined in oversight of insurers

Proposed activities-based approach to non-bank systemic risk will make Sifi designations less likely

The US Fed and Treasury
The US Treasury's financial stability unit is set for a bigger role, while fewer, if any, Sifi designations will leave the Fed out in the cold. montage

It took a change of US president and a lawsuit but the country’s authorities are finally giving in to calls by non-bank financial firms for an activities-based approach to any systemic risks they harbour. The Financial Stability Oversight Council (FSOC) has opened a consultation on the details of such an approach – while companies have found much in it to celebrate, critics say it will not protect financial stability.

Both camps agree the switch away from the current, entity-based approach

To continue reading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: