WASHINGTON — A coalition of associations, led by the U.S. Chamber of Commerce, sent a letter Thursday urging regulators to hold a public hearing on their plans to designate non-bank financial institutions as systemically important.
The Financial Stability Oversight Council, a consortium of regulators led by Treasury Secretary Tim Geithner, has gradually eased into the process revising its earlier rule last October.
Regulators were given a broad set of criteria, including size, interconnectedness, and complexity under Dodd-Frank to identify those firms, which would be supervised by the Federal Reserve Board.
The American Council of Life Insurers, Business Roundtable, and Competitive Enterprise Institute, among others, made the case in their letter for a hearing to air the number of concerns that have been raised by comment letters, including threshold factors to determine if a company should be subject to a review for possible designation. The public comment period closed on Dec. 19.
"A public hearing on the rule prior to its adoption by FSOC would further transparency by allowing the public an opportunity for additional input and to understand the process that the members of FSOC will follow to resolve these questions and for FSOC to receive further informed comment," according to the letter.