Pricing Risk: Contracting With A SIFI

Law360, New York (April 24, 2012, 1:31 PM EDT) -- On April 3, 2012, at a public meeting, the U.S. Financial Stability Oversight Council (FSOC) finalized a rule that establishes a protocol for determining which nonbank financial companies — including private equity firms, insurance companies and hedge funds — may be classified as a “systemically important financial institution” (SIFI).

The final rule was passed pursuant to Section 113 of the Dodd-Frank Act, which authorizes the FSOC to require a nonbank to be supervised by the Federal Reserve Board and be subject to prudential standards, if the...
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