The Financial Stability Oversight Council voted to identify an initial group of nonbank firms as potential threats to financial stability. Under the Dodd-Frank reform law, the FSOC has the responsibility to name several nonbank financial companies as systemically risky.

Although the FSOC did not name the firms they labeled as systemically risky on Monday, American International Group, Prudential Financial and GE Capital all separately confirmed they were a firm identified by the council.

"Once designated by the council, firms will face a tougher set of supervisory standards and be required to prepare and file a plan with regulators detailing how to safely unwind the company if it's on the brink of failure. It's unclear exactly what additional capital and liquidity requirements those nonbank firms would face under the Fed's supervision," writes American Banker's Donna Borak.

"Until the Federal Reserve finalizes the rule defining what systemically important financial institutions will be subjected to, it is premature for the FSOC to move forward with designations," said David Hirschmann, president and CEO of the U.S. Chamber's Center for Capital Markets Competitiveness.

For the full piece see "FSOC Names Systemically Risky Nonbanks" (may require subscription).