Treasury’s Mnuchin backs plan to ease nonbank oversight despite predecessors’ criticism

13 May 2019 10:23pm
US Treasury Secretary Steven Mnuchin endorsed a regulatory plan to erect barriers to deeming a nonbank systemically important even as it was decried as a “substantial weakening” of post-crisis reforms by his two predecessors.

Mnuchin expressed support today for the US Financial Stability Oversight Council plan to rely on an “activities-based approach” that assesses economic risks across a broad set of insurers and asset managers.

“Treasury strongly believes in the activities-based approach to evaluating financial stability,” he told state insurance commissioners.* “Treasury and the Financial Stability Oversight Council continue to work on the activities-based approach – rather than an entity-based approach – to the evaluation of potential systemic risk in the financial sector”.