This story appeared in Bank Digest.
Senator Tim Scott (R-SC) and nine other Republican senators have sent a letter to Treasury Secretary Steven Mnuchin urging him to review the Financial Stability Oversight Council's process for designating nonbank financial companies as systemically important financial institutions, subject to supervision by the Federal Reserve Board and enhanced prudential standards. The senators said this process "lacks transparency and accountability, insufficiently tracks data, and does not have a consistent methodology for determinations."
According to the letter, this process has created "substantial new regulatory costs" that ultimately make American companies less competitive around the world. The senators said Mnuchin had "our strong support for using all the tools available as Secretary of Treasury to end 'Too Big To Fail' and ensure that hard-working Americans are not responsible for any new bailouts."