A panel of federal financial regulators decided Tuesday on criteria to determine which non-banking financial services providers are in the most need of stiffer regulations to stop future economic calamities like the one that struck the country between 2007 and 2009. Resource for this article:
FSOC rules on systematic non-bank firms
Making for a better economy
In 2010, the <a href="http://personalmoneynetwork.com/moneyblog/2011/05/16/congressional-bills-cfpb/">Financial Stability Oversight Council</a>, or FSOC, was produced as part of the Frank-Dodd Wall Street Reform Act. The idea behind it was to regulate businesses that might hurt the future economy if they continue to lend unfairly. This was why the decisions were made.
Council chairman and Treasury Secretary Timothy F. Geithner explained: