The US House Financial Services Committee and the Treasury Department released draft legislation to address the issue of systemic risk and “too big to fail” financial institutions. Reportedly, the draft bill will:
- Create a mechanism for monitoring and reducing the threats that systemically risky firms pose to the financial system.
- Establish a process for winding down large, financially-troubled non-bank financial institutions in a way that protects American taxpayers and minimizes the impact on the financial system.
- Overhaul and update our financial regulatory system.
