US working to restore capacity to designate non-bank finance institutions as systemic, Yellen says

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(Reuters) – U.S. Treasury Secretary Janet Yellen said on Wednesday that her department was working to restore the Financial Stability Oversight Council’s (FSOC) ability to designate non-bank financial institutions as systemically important.

Yellen, speaking at a hearing of the U.S. Senate’s Appropriations Subcommittee on Financial Services and General Government, said the Treasury Department was working with FSOC on drafting revised guidance that would restore such designations.