The Financial Stability Oversight Council has adopted a rule that will designate some private equity firms, hedge funds, insurers and other nonbank financial firms as "systemically important financial institutions." The move will increase the regulatory oversight of such firms. The rule "is an important tool provided in Dodd-Frank for extending the perimeter of transparency, oversight and prudential supervision over parts of the financial system that can be a particularly important source of credit to the economy and potentially important source of risk," said Treasury Secretary Timothy Geithner, who heads the 10-member council. Read SIFMA's statement on FSOC's move.

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