The largest US financial regulators have proposed strengthening the tools used to audit non-bank institutions, including amendments to the guidance issued under former US President Donald Trump that made them difficult to counter.
At the end of last week, US Treasury Secretary Janet Yellen announced a proposal submitted by the Financial Stability Oversight Board to review the way non-banking institutions are classified as systemically vital.
“The current guideline (released in 2019) places inappropriate hurdles within the classification process, and these additional measures are not legally required under the Dodd-Frank Act,” Yellen said. It is also useless and useless, and some of it is based on a wrong vision of the manner in which financial crises erupted and the costs arising from them.
She added that this classification process may take 6 years to complete, warning that “setting an unrealistic timetable may hinder the Board’s intervention to address the emerging threat to financial stability before it is too late.”
Okaz (Washington) @okaz_online