US regulators change way big financial firms chosen for stricter oversight; earlier notice

IndustriesAssociated Press

A group of top U.S. regulators charged with monitoring the financial system is making changes to the way big financial firms are chosen for stricter government oversight.

Companies will be notified earlier in the process by the Financial Stability Oversight Council that they could be designated as a potential threat to the financial system, under the changes adopted Wednesday by the council. That will give the companies more time to challenge the designation.

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The council also will provide more information on its review process to the companies and the public. Sensitive, confidential company information will still be kept from public view.

A designation of "systemically important" means regulators believe a company is so big and entwined with the financial system that it could threaten the economy if it collapsed.