Reuters: Republican senators want review of SIFI designation process
Republican lawmakers on Tuesday asked the U.S. Treasury secretary to review the process a government council uses to label non-bank institutions “too big to fail,” saying the additional capital requirements and regulations are too onerous.
The current designation process “lacks transparency and accountability, insufficiently tracks data, and does not have a consistent methodology for determinations,” wrote 10 Republican senators to Treasury Secretary Steve Mnuchin, who chairs the Financial Stability Oversight Council.
The council “has created substantial new regulatory costs while putting taxpayers on the hook for any future bailout to these firms,” said the letter, signed by Arkansas Senator Tom Cotton and Idaho Senator Mike Crapo, who chairs the Senate’s banking committee.
Treasury did not immediately comment on the letter.