U.S. Said Set to Target First Non-Bank Firms for Scrutiny
Bloomberg is reporting, according to people with knowledge of the plans, U.S. regulators are set to choose the first non-bank companies likely to be branded potential risks to the financial system.
Bloomberg said regulators want to ensure that no firm posing a potential risk to the financial system escapes scrutiny, while non-bank financial firms argue that designation would burden them with unnecessary costs and economic stability wouldn’t be threatened if they failed.
Bloomberg noted that at an investor conference in May, Mike Neal, GE Capital CEO, said that the firm is likely to be designated.
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