WASHINGTON (Reuters) - U.S. Treasury Secretary Steven Mnuchin on Friday said he expects to publish a much-anticipated review of the Financial Stability Oversight Council (FSOC) ahead of a review of special rules that would allow regulators to step in and unwind a troubled lender.
The FSOC comprises the country’s major financial regulators and oversees the designation of large financial firms as systemically important, a process banks have criticized as too opaque.
The “orderly liquidation authority” or OLA, introduced by the 2010 Dodd-Frank financial reform law, gives U.S. regulators the power to step in and liquidate a troubled bank instead of putting it through a traditional bankruptcy.
Many Republicans say OLA powers are excessive, while many leaders of the banking industry defend the powers.
Reporting By Patrick Rucker; Editing by Bernadette Baum