Supporters argued that the bill does not prevent the FSOC from taking prompt action in a crisis, but ensures that any move to designate a non-bank is better justified, coordinated with existing regulators and less vulnerable to legal challenge. However, critics of tightening the process warn that additional procedural steps could discourage the FSOC from using its designation power, even where a large non-bank is clearly posing systemic risk. He cautioned that, in rapidly escalating stress scenarios, requiring more consultation and formal analysis could delay action or create space for lobbying, which would make regulators slower to respond than markets.
US House bill targets how regulators rate insurers as systemically important & more related News Here
