October 13, 2017 / 1:24 PM / 10 months ago

Mnuchin says will take on 'orderly liquidation' after FSOC report

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.

Treasury Secretary Steven Mnuchin walks through the lobby of Trump Tower in New York City, U.S., August 15, 2017. REUTERS/Brendan McDermid

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

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