While the nano-cap world eagerly watched Washington’s latest financial regulation bill to see if it would nix SOX’s pending plan to double audit costs (it did), David Feldman over at the Reverse Merger blog kept his eye on an even bigger ball. Today, Feldman reported…
a new federal agency has been created – the Financial Stability Oversity Council (”FSOC”?). The members of the council, to be led by the US Treasury Secretary, include the heads of major agencies such as the SEC, the Fed and the FDIC. The council’s job is to decide which big companies are “systemically important.” Once they decide that, they get to regulate them. They can require them to get rid of assets to avoid a “grave threat” to our financial stability, can require whatever reserves they think make sense, more public disclosures and the like. The Fed will also oversee and regulate the systemically important companies if they do not already.
