Financial Stability Oversight Council News

Regulators Reviewing Berkshire Hathaway for Systemic Risk

Regulators are starting to scrutinize Warren Buffett’s Berkshire Hathaway Inc. to determine whether it is important enough to the financial system to require Federal Reserve supervision, according to two people with knowledge of the matter. The U.S. Financial Stability Oversight …

Chamber Calls for Stricter Rules on Systemic Risk Designations on Insurers

The U.S. Chamber of Commerce is calling for rules that would make it more difficult for a group of regulators to subject financial companies to stricter oversight. A vote of three-quarters of the Financial Stability Oversight Council should be required …

Financial Stability Regulators Discuss Debt Limit, Government Shutdown

U.S. financial regulators discussed the federal debt ceiling and the effect of the government shutdown on market monitoring during a phone conversation on Tuesday, a Treasury Department spokesman said. The Financial Stability Oversight Council might meet again as Oct. 17 …

Vote on Prudential Systemic Risk Designation Was 7-2

Prudential Financial Inc., the second-largest U.S. life insurer, was designated systemically important in a 7-to-2 vote by a council of regulators charged with preventing another crisis. Edward DeMarco, acting director of the Federal Housing Finance Agency, and Roy Woodall, a …

Prudential Designated Systemically Risky, Subject to Federal Reserve Oversight

Insurer Prudential Financial Inc. said on Thursday that U.S. regulators had voted to designate the company as systemically risky, bringing it under stricter regulatory oversight. A group of regulators known as the Financial Stability Oversight Council had been weighing whether …

MetLife Says Regulators May Miss Key Insurer Risks with Focus on Bank Rules

Federal regulators may miss important threats to the financial stability of U.S. insurers by focusing on bank risks, MetLife Inc. Chief Financial Officer John Hele said. “Bank rules overlook key insurance risks,” Hele said today at a conference in New …

State Insurance Regulators Invoke Jefferson to Limit Federal Role

State insurance regulators are drawing on the country’s founding principles as they resist international pressure to give the federal government a greater role in overseeing the industry. Ben Nelson, chief executive officer of the National Association of Insurance Commissioners and …

Commentary: Does FSOC Understand the Business of Insurance?

The Financial Stability Oversight Council (FSOC) designated AIG as a Systemically Important Financial Institution (SIFI) after determining that “material financial distress at AIG could pose a threat to U.S. financial stability.” One may debate whether AIG should be a SIFI …

Senate Bill Gives Federal Reserve Flexibility on Systemically Important Insurers

A bipartisan group of U.S. senators is introducing legislation that would give the Federal Reserve more flexibility in regulating systemically important insurance companies such as American International Group Inc. The Senate bill, whose sponsors include Ohio Democrat Sherrod Brown and …

Fed Approves Process for Designating Nonbanks for Stricter Oversight

The U.S. Federal Reserve said on Wednesday that it had approved a final rule to clarify the process the new U.S. risk council will follow when it begins designating nonbank financial firms for heightened oversight. A group of regulators known …