WASHINGTON — The Financial Stability Oversight Council discussed its designation of certain nonbanks as systemically important and the "efficacy" of the Volcker Rule at a closed-door meeting on Monday, according to the Treasury Department.

The discussion of the Volcker Rule, which prohibits banks from engaging in proprietary trading, came as part of talks about an executive order from President Trump asking the Treasury Department to review the regulatory system. Though the Treasury did not provide details of the discussion, banks and Republicans have targeted the Volcker Rule, arguing it is complex and difficult to comply with.

Treasury Secretary Steve Mnuchin
Members of the Financial Stability Oversight Council, chaired by Treasury Secretary Steven Mnuchin, received an update on banks' living wills and resolution planning. Bloomberg News

The interagency council, chaired by Treasury Secretary Steven Mnuchin, also discussed its annual re-evaluation of certain nonbanks as systemically important financial institutions. FSOC has designated four firms as SIFIs: GE Capital, MetLife, American International Group and Prudential. But GE Capital has since been dedesignated after a restructuring, and a federal court rescinded MetLife's designation. That case is still under appeal, though both sides have asked for a temporary delay.

Additionally, the FSOC received an update from the Federal Reserve Board and the Federal Deposit Insurance Corp. on bank holding companies' living wills and resolution planning, the Treasury said.

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