On February 17th, FDIC Chairman Sheila Bair, testifying before the Senate Banking Committee, discussed systemically important firms. The Financial Stability Oversight Council (FSOC) has divided the nonbank financial sector into four categories: (1) the hedge fund, private equity firm, and asset management industries; (2) the insurance industry; (3) specialty lenders; and (4) broker-dealers and futures commission merchants. The Council has begun developing measures of potential risks posed by these firms. Once these measures are agreed upon, the FSOC may need to request data or information that is not currently collected or otherwise available in public filings. Bair Testimony. Bloomberg reported that a draft FSOC report concludes that hedge funds and insurers can pose systemic risk. Systemic Importance.