Financial Stability Oversight Council Proposal Includes Few Clues About Who Will Be Designated as Significant

January 24, 2011
The Financial Stability Oversight Council (“FSOC”) has issued a much-anticipated Notice of Proposed Rulemaking regarding the designation of certain nonbank financial companies as being systemically significant. The Notice sheds little light on whether any particular industry or company is likely to be designated. The preamble to the Notice sets forth six criteria for analyzing a company’s significance, but they are not included in the proposed rule itself. This update examines the proposal, comments on which will be due 30 days after its publication in the Federal Register.