On June 29, the Financial Stability Oversight Counsel (FSOC) announced that it rescinded its July 2013 “systemically important” designation of a Connecticut-based financial company. FSOC’s July 2013 designation subjected the company to supervision by the Federal Reserve and enhanced prudential standards. According to FSOC, the company posed a threat to U.S. financial stability due to its standing as one of the largest – ranked by assets – financial services companies in the U.S. At the time of its designation, the company also acted as a significant source of credit to the U.S. economy by providing financing to more than 243,000 commercial customers, 201,000 small businesses through retail programs, and 57 million consumers in the U.S. On June 28, FSOC unanimously voted to rescind its designation, stating that the company had “fundamentally changed its business” by, among other things: (i) decreasing its total assets by more than 50 percent; (ii) moving away from short-term funding; (iii) reducing connections with large financial institutions; (iv) no longer owning any U.S. depository institutions; and (v) no longer providing financing to U.S. consumers or small businesses in the U.S. FSOC also noted that, “[t]hrough a series of divestitures, a transformation of its funding model, and a corporate reorganization, the company has become a much less significant participant in financial markets and the economy.” Treasury Secretary Lew commented that the FSOC’s decision demonstrates a two-way designation process: “The Council follows the facts: When it identifies a company that could threaten financial stability, it acts; when those risks change, the Council also acts.”