The top Treasury overseer of financial institutions said Thursday night that the government "is nearing the end of the process" of designating which nonbanks, such as insurers, will be deemed systemically significant and therefore subject to federal regulation.
However, the comments by Mary Miller, U.S. Treasury undersecretary for Domestic Finance, are not that much different than comments on the issue she made at a Washington conference March 4 regarding the time of SIFI designations for nonbanks, so it is unclear how soon that the agency will vote on designating an insurer as a SIFI.
At that time, Miller said the "hope is that the FSOC will vote up or down on the SIFI designations "in the next few months."
In her latest comments at the annual Hyman P. Minsky financial conference at Barnard College in New York, Miller said that the Financial Stability Oversight Council "is in the final stages of evaluating an initial set of nonbank financial companies to determine which companies will be supervised by the Federal Reserve Board and subject to prudential standards including capital and liquidity requirements. For the first set of companies, the Council is nearing the end of the process."
