Treasury Secretary Janet Yellen called an emergency meeting with top U.S. financial regulators.
Yellen will chair the closed-door Financial Stability Oversight Council (FSOC) meeting on Friday, the Treasury Department said in a statement. The Treasury did not provide any additional details regarding the closed meeting.
The FSOC meets regularly to discuss national financial stability and regulation issues. The group consists of the heads of the Federal Reserve, the Securities and Exchange Commission (SEC), the Federal Deposit Insurance Corporation (FDIC), and regulatory bodies. While it only maintains a little legal authority, members use the FOSC for coordinating purposes.
Appearing before the Senate Appropriations Financial Services and General Government Subcommittee hearing on March 22, Yellen told lawmakers that the FSOC was preparing a revised guidance report that would revive the group’s ability to designate non-bank financial institutions as systemically important. This would foster stronger regulation….