• According to the Dodd-Frank Act, nonbank financial companies are domestic companies or foreign companies that predominantly are engaged in financial activities (such as insurance companies, consumer finance providers, commercial lenders, asset managers, and investment funds) but that are not bank holding companies or certain other types of firms (such as registered securities exchanges, clearing agencies, and swap execution facilities).3
  • The designations are intended to help avoid the regulatory gaps that existed before the crisis and minimize the risk of a nonbank financial company threatening the stability of the financial system.4
  • As of September 2014, FSOC had determined that three nonbank financial companies—American International Group, Inc. (AIG), General Electric Capital Corporation, Inc. (GE Capital), and Prudential Financial, Inc. (Prudential)—should be supervised by the Federal Reserve.5
  • Some members of Congress and others have raised questions about how and on what basis FSOC made its determinations. 6

Further Actions Could Improve the Nonbank Designation Process - [link]

Integration of Financial Services

On Wednesday April the full Senate Banking Committee chaired by Jake Garn of Utah began the first of series of hearings to explore the competitive structure of the financial services industry Testifying on behalf of the Administration was Treasury Secretary Donald Regan who began his statement by applauding Comptroller of the Currency Convers decision of Tuesday to impose moratorium until January 1984 on the creation of nonbank banks.

FROM: Heron Burchette Ruckert Rothwell
DATE: April 12 1983
SUBJECT Legislative Update

332-104304-1983-1984 - SG