Pricing Risk - Contracting with a SIFI: Private Equity Firms, Insurance Companies, and Hedge Funds

Frank A. Mayer, III | [email protected]

Timothy R. McTaggart | [email protected]
Ryan R. Tooley | [email protected]

 

On April 3, 2012 at a public meeting, the Financial Stability Oversight Council (FSOC) finalized a rule that establishes a protocol for determining which non-bank financial companies (including private equity firms, insurance companies, and hedge funds) may be classified as a "systemically important financial institution" (SIFI). The final rule was passed pursuant to Section 113 of the Dodd-Frank Act, which authorizes the FSOC to require a non-bank to be supervised by the Federal Reserve Board and be subject to prudential standards, if the FSOC determines that material financial distress at the SIFI could pose a threat to financial stability.

 

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More Resources on the Dodd-Frank Act

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