Financial Firms Face New Clampdown
June 3, 2013
Led by Treasury Secretary Jack Lew, the 10-member Financial Stability Oversight Council (FSOC) voted during a closed meeting to move forward with plans to designate “an initial set” of undisclosed firms, Treasury spokeswoman Suzanne Elio said.
“Today, the Council took another important step forward by exercising one of its principal authorities to protect taxpayers, reduce risk in the financial system, and promote financial stability,” Lew, the panel’s chairman, said in a written statement.
Under the proposed designation, firms labeled as “systemically important” would be subject to increased new regulations imposed by the Federal Reserve, which traditionally supervises banks.
However, critics of the move say it would only serve to imperil the economy further.