The Federal Reserve Board announced its rules determining if a nonbank is “systemically important.”  Here’s a quick recap:

Under the Dodd-Frank bill, the Financial Stability Oversight Council may add a nonbank entity to their supervision if they determine that the particular entity is “systemically important.”  They have announced and the Federal Reserve Board approved their criteria, for determining if a nonbank will come under greater scrutiny.

First, it must be determined that a firm is “engaged in financial activities” and that at least 85% of its assets or revenues are financial in nature.  These include lending, offering financial advice and servicing loans.  The Council will also review a firm’s relationship with other financial companies.

According to an article on American Banker, the companies most likely to be labeled as “systemically important” are AIG, Prudential, MetLife, GE Financial and possibly BlackRock and Pimco.