Yellen, Financial Regulators Tighten Rules on Non-Bank Firms, Revise Trump-Era Guidelines
Led by U.S. Treasury Secretary Janet Yellen, a consortium of top financial regulators voted on Friday to issue proposed guidelines designed to enhance the stability of the financial system in the wake of one of the most significant shocks since the 2008 financial crisis.
The new guidelines put forth by Yellen and the Financial Stability Oversight Council (FSOC) outline the process by which individual non-bank financial entities could be identified for supervision by the Federal Reserve, subjecting them to increased scrutiny.
Yellen expressed concerns that changes implemented by the Trump administration in 2019 had created “inappropriate hurdles” in the designation process, and said the new proposals seek to “revise and update” that administration’s guidance….