Tag Archives: SIFIs

Here's why researchers at the American Enterprise Institute say proposed rules from the FHFA would be insufficient in a financial crisis.

The bipartisan Economic Growth, Regulatory Relief, and Consumer Protection Act is now headed to the full Senate for debate, including provisions that would modify significant elements of the Dodd-Frank act.

The FSOC has the authority to designate institutions as "systemically important," which opponents say leaves the door open for taxpayer-funded bailouts.

Some members of the Subcommittee contended at the hearing that Dodd-Frank is codifying "too big to fail" by continuing to designate firms (both banks and non-banks) as SIFIs, therefore guaranteeing those firms a federal backstop should a financial crisis occur.

The National Association of Insurance Commissioners (NAIC), the American Council of Life Insurers (ACLI), the Academic Experts in Financial Regulation (AEFR), and the U.S. Chamber of Commerce all filed briefs backing the New York-based global insurance provider's attempt to remove the SIFI tag.

Even though the Fed's approach to stress testing has evolved in the last six years, some elements of the original SCAP remain in the stress tests conducted by the Fed today, such as supervisory stress scenarios applicable to all firms; defined consequences for firms that are deemed to be insufficiently capitalized; and public disclosure of the stress test results, according to Fischer.