WASHINGTON — President Trump will sign two presidential memorandums on Friday that zero in how regulators would resolve big banks and supervise companies that pose a risk to the broader financial system.
The first memo calls
“We are going to do the review and do what makes sense,” Mnuchin told reporters during a press briefing in reference to the memos, which direct him to report back to the White House in 180 days on his findings.
As part of the review, Mnuchin will re-examine the FSOC designation process, which Republicans in particular have criticized for being opaque. Four nonbanks have been designated as systemically important by the FSOC, which subjects them higher regulatory requirements and Federal Reserve supervision.
The FSOC has rescinded one of its designations and another firm, MetLife, is suing over its designation.
While it is not relevant to the memos, Mnuchin also said that housing finance reform is very important to the administration but not an early priority.
“We have been having significant discussions at Treasury with the FHFA, with congressional leadership on this and we are committed to working with the House and the Senate on having a reform package that make sure that we promote necessary liquidity in the housing markets,” Mnuchin said, referring to the Federal Housing Finance Agency.
