Jan 22 The U.S. risk council is looking to
determine whether Warren Buffett's Berkshire Hathaway Inc
could be systemically important, a tag that would
subject it to stricter regulatory oversight, Bloomberg reported,
citing two people familiar with the matter.
The U.S. Financial Stability Oversight Council's (FSOC)
study of Berkshire may not mean the panel is inclined to
designate the Omaha, Nebraska-based company, Bloomberg said. ()
Berkshire was not immediately available to comment, while
the U.S. Treasury declined to comment.
The council, led by Treasury Secretary Jacob Lew, is
evaluating which non-bank financial companies could threaten
financial stability if they were to fail, Bloomberg reported.
The council in July designated insurer American
International Group, GE Capital and Prudential
Financial Inc as systemically risky, thus bringing them
under stricter regulatory oversight.
The risk council, which includes the heads of other
financial regulatory agencies, is a relatively new federal body
that is testing its powers under the 2010 Dodd-Frank financial
After a number of non-bank firms struggled during the
2007-2009 financial crisis, Dodd-Frank gave the regulatory
council the power to identify potentially risky non-bank firms
and regulate them more like banks.