International Association of Insurance Super. G-20. Farm Credit System. CSBS. OFR. FSOC. SEC. US regulators divided on systemic risk list. 04 Apr.
US officials are split on how many financial institutions should be branded systemically important, say people familiar with inter-agency talks, amid desperate lobbying by non-bank financial groups to avoid the designation. The Federal Deposit Insurance Corporation is arguing for a broad approach, pulling in large hedge funds, insurers and asset managers, while the Treasury and the Federal Reserve prefer to designate only a handful. The new system aims to identify future AIGs and – by placing Fed examiners inside companies and forcing them to maintain higher capital and liquidity standards – stop the sort of dangerous risks the insurer took before its $180bn government rescue in 2008.
Non-bank financial groups are engaged in their biggest lobbying effort since the passage of the Dodd-Frank financial reforms last year in an attempt to escape the net, which they fear will hit profits with hundreds of millions of dollars of extra costs and trapped capital. Source: Financial Times.
OCC. FRB. FDIC.