The Financial Stability Oversight Council moved forward on its task, required by Dodd-Frank, of identifying nonbank financial institutions, such as insurance companies, hedge funds and private-equity firms, that pose a systemic risk.

In a closed door meeting, headed by Treasury Secretary Geithner, the council voted to move to the third phase of identifying such institutions, reports American Banker's Donna Borak.

So which ones are on the short list?

"The council will notify the companies that were advanced but does not intend to publicly announce the name of any nonbank financial company that is under evaluation before a final designation of such company," said a Treasury spokesman.

For the final designation the institution will have to be voted SIFI by two thirds of the council. These SIFI nonbanks will be subject to more demanding regulations, but "it's unclear exactly what additional capital and liquidity requirements those nonbank firms would face," writes Borak.

For the full piece see "FSOC Takes Next Step to Identify Systemically Risky Nonbanks" (may require subscription).