In concert with finalizing a new systemic-risk methodology,  the Financial Stability Oversight Council issued guidance that significantly rewrites the manner in which nonbanks are designated as systemically important financial institutions (SIFIs), largely retaining its initial proposal.   The new approach retracts  the Trump FSOC’s approach via an entirely new framework,  now eliminating the necessity of determining if a possible designee is likely to fail and what the costs and benefits of designation is likely to be.  Although the new approach retains numerous procedural opportunities for the possible designee to know of and protest action, the new protocol still makes designation more likely.

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