Davis Polk partner David Portilla was quoted in the American Banker on the potential for nonbank financial firms to be subject to financial regulators.

David noted that while the Financial Stability Oversight Council (FSOC) has reclaimed its power to designate nonbanks systemically risky, it may not reduce the risks posed by nonbanks overnight.

“There doesn’t seem to be an indication that the FSOC is working on entity designations in regards to the asset management industry,” he said.

“Regulators are taking on nonbanks — a little bit at a time,” American Banker (March 15, 2024) (subscription required)

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