Photographer: John Taggart/Bloomberg

Wall Street's Big, Bad Post-Crisis Regulator Is Cautious

  • MetLife ruling threatened powers FSOC has been loathe to use
  • Few firms labeled systemically important since 2010 creation

A court ruling that erased MetLife Inc.’s too-big-to fail label has been depicted as a referendum on the future of the Dodd-Frank Act’s super regulator. But the key power that the Financial Stability Oversight Council wields -- designating firms as being so big and interconnected that their failure could threaten the financial system -- was already gathering cobwebs.

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