US Treasury and Government Watchdogs Propose Tougher Regulations for Nonbank Financial Companies.

The US Treasury and top financial regulators proposed new rules to make it easier for the Federal Reserve to supervise and regulate nonbank institutions, which pose a systemic risk to US financial stability. The new guidance will replace the 2019-era rules with an analysis process where the council determines if "material financial distress at the company or the company's activities could pose a threat to US financial stability." Treasury Secretary Janet Yellen called for greater oversight and emergency provisions to prevent financial disruptions from starting and spreading in the first place.