The Financial Stability Oversight Council has started the clockon a six-month process for designating a non-bank as systemicallysignificant.

Ryan Schoen and others at Washington Analysis saidFriday in an investor's note, “While FSOC did not disclose whichcompanies were considered in today's meeting, we expect the list tobe short (probably no more than five to seven institutions),including, but not limited to, AIG, MetLife, Prudential and GeneralElectric.”

In a statement to reporters, a Treasury Department spokesmanconfirmed the FSOC is entering the “third stage” of its process todetermine whether an institution should be designated SIFI.

According to Schoen, the “third stage” gives the companies anopportunity to respond to a request for information and to requesta hearing to contest the proposed designation.

Schoen said that, based on the timelines laid out in the statuteand regulations, Washington Analysis expects the finaldesignations to come in either in December or in the first quarterof 2013.

Before the FSOC publicly announces its final determinations, itwill provide the non-bank financial company formal notice of atleast one business day, Schoen said.

A spokesman for MetLife declined comment. AIG and Pru did notrespond to requests for comment.

However, a MetLife spokesman noted that until the sale of itsbank to GE Capital is approved, MetLife is already undersupervision by the Federal Reserve Board as a bank-holdingcompany.

Under Sec. 113 of the Dodd-Frank Act, the FSOC may designatenon-bank financial companies for supervision by the Federal ReserveSystem under enhanced prudential standards if it determines suchcompanies could pose a threat to U.S. financial stability.

This article was originally posted at PropertyCasualty360.com,a sister site of Credit Union Times.