Large U.S. Nonbanks Face ‘Bank-Like’ Regulation

Large U.S. Nonbanks Face ‘Bank-Like’ Regulation

November 13, 2023, Banking Risk and Regulation

Karen Solomon’s commentary was included in a Banking Risk and Regulation article discussing the effects of rule change by the Financial Stability Oversight Council (FSOC) — an overarching body for U.S. financial regulators overseen by the Treasury secretary — will bring institutions like asset management companies, hedge funds, and giant insurers under greater regulatory scrutiny.

Karen said that the proposal, alongside the FSOC’s changes, could impose significant compliance requirements on nonbanks. “Both — especially if taken together — move nonbank firms firmly in the direction of being regulated like banks,” she added.