jmac00
06-19-2009, 09:12 PM
Fed Set To Scrutinize Big Companies
Who will be the most regulated of them all? Under the Obama administration’s
proposed regulatory revamp, certain companies would be set aside for
special scrutiny if they are seen as large and interconnected enough that
their failure would send a shudder through the economy.
The plan would require these companies, even if they aren’t banks, to face
much stricter oversight from the Federal Reserve. The central bank could
examine everything from the company’s domestic parent to its smallest foreign
subsidiary.
Officially designated “Tier 1 financial holding companies,” they could be
banks, insurers or almost any other large market player. Government officials
believe most potential candidates already would be under Fed scrutiny
because they are so-called bank-holding companies, such as Citigroup Inc.
or Bank of America Corp.
It is possible only a handful of others might qualify. Candidates, according to
analysts and some industry officials in Washington, include GE Capital, the
financing arm of General Electric Co., and some large insurers.
Who will be the most regulated of them all? Under the Obama administration’s
proposed regulatory revamp, certain companies would be set aside for
special scrutiny if they are seen as large and interconnected enough that
their failure would send a shudder through the economy.
The plan would require these companies, even if they aren’t banks, to face
much stricter oversight from the Federal Reserve. The central bank could
examine everything from the company’s domestic parent to its smallest foreign
subsidiary.
Officially designated “Tier 1 financial holding companies,” they could be
banks, insurers or almost any other large market player. Government officials
believe most potential candidates already would be under Fed scrutiny
because they are so-called bank-holding companies, such as Citigroup Inc.
or Bank of America Corp.
It is possible only a handful of others might qualify. Candidates, according to
analysts and some industry officials in Washington, include GE Capital, the
financing arm of General Electric Co., and some large insurers.