In the News

Mnuchin’s Ill-Advised Plan on Nonbank SIFIs

Gregg Gelzinis discusses how Treasury Secretary Mnuchin's plan to raise the threshold above which banks face increased regulation—from $50 billion to $250 billion—could make the financial system less stable.

In March, the Senate passed the Economic Growth, Regulatory Relief, and Consumer Protection Act, which raises Dodd-Frank’s asset threshold — above which banks face enhanced regulatory standards — from $50 billion to $250 billion.

But the $50 billion threshold for banks is not the only one of its kind under threat.

Treasury Secretary Steven Mnuchin, who heads the Financial Stability Oversight Council, said at a January hearing that he intends to raise a lesser-known $50 billion threshold if the Senate legislation is enacted. This threshold is used by the FSOC to narrow the universe of companies considered in the first stage of the council’s multistage designation process for systemically important nonbank financial companies.

The above excerpt was originally published in American Banker. Click here to view the full article.

The positions of American Progress, and our policy experts, are independent, and the findings and conclusions presented are those of American Progress alone. A full list of supporters is available here. American Progress would like to acknowledge the many generous supporters who make our work possible.

Authors

Gregg Gelzinis

Associate Director

Just released!

Interactive: Mapping access to abortion by congressional district

Click here