Trump will order an assessment of how the FSOC designates a financial institution as "systemically important," which triggers requirements to hold more capital in case it comes into crisis.
Republican lawmakers say the FSOC uses a flawed process lacking transparency to designate non-bank institutions. Only two insurers, American International Group Inc and Prudential Financial Inc., currently carry the label, and a judge last year struck down the council's designation of MetLife Inc.
Mnuchin will have 180 days to report to Trump on the liquidation authority, a tool for federal banking regulators to use if they need to step in during a financial emergency and help a failing bank unwind. The report will offer views on using bankruptcy as an alternative, the impact of failing companies on financial stability, and whether the authority could drive up taxpayer costs or encourage excessive risk-taking.
This article was provided by Reuters.