The collapse of major financial service groups in 2008 and beyond rippled through the financial system and the economy, prompting the characterization of some organizations as "too big to fail." The Financial Stability Oversight Council (FSOC), headed by the US Treasury Secretary, is charged with classifying and identifying organizations that pose systemic risks. These organizations are known as Systemically Important Financial Institutions or SIFIs.
In addition to certain large banks, which the Dodd-Frank Act of 2010 immediately designated as systemically important, SIFI designations were expanded to include nonbank financial companies and financial market utilities. FSOC also has designated certain producers of insurance services as important from a financial systems perspective.
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