Top financial regulators back proposals to revamp process for picking big firms for oversight

Top financial regulators say they believe changes need to be made to the process of choosing which big financial firms need to be designated for stricter oversight.

Members of the Financial Stability Oversight Council voiced support for changes recommended in a staff report including notifying companies earlier in the process that they could be designated, a step that would give them more time to challenge the designation. The proposals would also provide more information on the review process to the companies and the public.

The council did not take any final action but members including Treasury Secretary Jacob Lew and Fed Chair Janet Yellen expressed support for the proposals, which are coming at a time of increased efforts to roll back the reforms passed after the 2008 financial crisis.