WASHINGTON Aug 28 The U.S. systemic risk
council will meet on Sept. 4 to discuss naming nonbank financial
firms for tougher regulatory oversight, the U.S. Treasury
Department said on Thursday.
The Financial Stability Oversight Council (FSOC) appears
close to deciding whether it believes insurer Metlife Inc
is "systemically" risky, or so big its hypothetical
failure could destabilize global financial markets.
The council has already given this designation to insurers
Prudential Financial Inc and American International
Group Inc, and General Electric Co's financial
The tag means they will be regulated more like U.S. banks
and will come under scrutiny from the Federal Reserve.
At its closed-door meeting next week, the group, which is
led by Treasury Secretary Jack Lew, will discuss naming
additional nonbank firms for such oversight, according to an
update on the FSOC's website.
They did not name which firms are under consideration.
Regulators recently took a procedural step to pave the way for a
vote on Metlife.
The council is made up of the heads of U.S. regulatory
agencies, including the Fed and the Securities and Exchange
Commission. It was created by the 2010 Dodd-Frank Act and
charged with monitoring risks to the global financial system in
an effort to prevent another massive meltdown.
The group also will discuss its research into asset managers
such as BlackRock, which it has been studying to
determine whether the industry poses systemic risks.
It will also hear an update on banks' so-called living
wills, or plans for how they could go through bankruptcy rather
than be bailed out in a crisis.
The Fed and the Federal Deposit Insurance Corp on Aug. 5
told 11 big banks, including JPMorgan Chase and
Citigroup, that their plans were not up to scratch.
(Reporting by Emily Stephenson; Editing by Jonathan Oatis)