Mary Miller, the U.S Treasury undersecretary for domestic finance, said the Financial Stability Oversight Council may vote “in the next few months” on whether to designate some companies systemically important.
Miller, speaking at an Institute of International Bankers conference in Washington today, said the authority to apply the designation to companies, subjecting them to Federal Reserve oversight, “is not a power the council wields cavalierly.”
American International Group Inc., Prudential Financial Inc. and General Electric Co.’s finance unit are in the final stage of review by the council, a group of regulators created by the Dodd-Frank law to prevent another financial crisis.
Sheila Bair, former chairman of the Federal Deposit Insurance Corp., said last week that U.S. regulators lack the will and courage to designate non-bank financial companies systemically important.
Miller said today that “careful assessments of these firms take time. Over the last year, we have reviewed public data, engaged with an initial set of companies to gather additional information, and coordinated with the companies’ regulators to develop thorough assessments.”
“For this first set of companies, we are nearing the end of that process, and our hope is that the council will vote on designations in the next few months,” she said.
The oversight council also is reviewing and analyzing public comments received on its recommendations for tightening rules for money-market mutual funds, Miller said.