• Financial Stability Oversight Counsel (FSOC)Approves Final Rule On Criteria Used To Determine Which Financial Companies Will Face New Scrutiny
  • April 10, 2012 | Author: Cynthia J. Borrelli
  • Law Firm: Bressler, Amery & Ross A Professional Corporation - New York Office
  • On April 3, 2012, the Financial Stability Oversight Counsel (“FSOC”), headed by the Secretary of the Treasury, approved a final rule (the “Rule”) laying out the criteria to be used to determine which financial companies outside the banking industry will face new scrutiny by the Federal Reserve, as required by the Dodd-Frank Consumer Protection and Wall Street Reform Act of 2010 (the “Dodd-Frank Act”). Large insurers, hedge funds and other financial firms are potentially subject to the systemic designation. Enhanced federal scrutiny is intended to prevent a recurrence of the financial crisis which occurred late in 2008. A systemically important financial institution (“SIFI”) is a financial institution deemed systemically important to the economy because its failure has the potential to trigger a global financial crisis.