US risk council to discuss reforms for designating risky firms

[WASHINGTON] The US risk council will hold a public meeting next week to discuss potential reforms to its process for deciding which financial firms should be designated as systemically important.

The Financial Stability Oversight Council (FSOC) announced its plans for the Jan. 21 meeting just one day after MetLife sued the panel over its decision to designate the big insurer a systemically important financial institution, or SIFI, a tag that involves more regulation.

Critics including MetLife have frequently accused the FSOC of having a flawed process for determining which firms should be subjected to stricter rules. Last year, the FSOC said it would take those concerns into consideration and contemplate changes.

REUTERS