The Dodd-Frank Act Isn't Just For Banks

Not all financial institutions are created equal. Some, provide significant financial services to the economy, but do not operate as a "bank" so they fall outside of the regulatory scope for the Dodd-Frank Act. Up until yesterday, Feb 4, the FSOC made the determination on a one-off basis. For example, the following have "one-off" designations:

• MetLife, Inc.
• American International Group, Inc.
• General Electric Capital Corporation, Inc.
• Prudential Financial, Inc.

These institutions could pose a threat to U.S. financial stability. As of February 4, the Council decided to streamline the process of review in a way that could increase this list significantly by making the review process easier, meaning a greater number of non-bank financial institutions will be held accountable to Dodd-Frank legislation. To read more about these changes click here.