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Trump Suspends SIFI Designations

President Donald Trump signed an executive order directing Treasury Secretary Steven Mnuchin to suspend any new systemically important financial institution designations for nonbanks...
April 26, 2017

President Donald Trump signed an executive order directing Treasury Secretary Steven Mnuchin to suspend any new systemically important financial institution designations for nonbanks. The hiatus will be in effect while the government reviews the Financial Stability Oversight Council (FSOC) and related financial regulations.

The Financial CHOICE Act, set for a hearing on April 26 before the House Financial Services Committee, would roll back the government’s authority to designate SIFIs. With the removal of the SIFI designation on MetLife Inc. last year via litigation, the only other two U.S. insurers so designated are American International Group Inc. and Prudential Financial Inc.