Non-Banks Get Supervision

The Financial Stability Oversight Council voted on Monday to place non-bank companies that are risks to the financial system under supervisions similar to those of banks. The entities in question, hedge funds and private-equity firms, will be placed under the purview of the Federal Reserve and other authorities. The move comes three years after the passage of the Dodd-Frank financial-reform legislation, which called for defining which non-bank companies threatened the financial system. While no companies have been named, AIG, GE Capital, and Prudential have said they were among those singled out.