US regulators mull importance of Berkshire Hathaway

The Financial Stability Oversight Council (FSOC) in the US is in the process of considering whether Warren Buffett's Berkshire Hathaway poses risks to the financial system. If it decides it does, it could be subject to more intense regulatory scrutiny.

Headed by Treasury Secretary Jacob Lew, the FSOC has decided that the company, which owns a number of insurance and reinsurance businesses, meets some of the criteria outlined for companies that it will consider for tougher federal regulation. A decision, however, will not be made for several months.

The review mirrors a similar process bring carried out by the Financial Stability Board, a body of international regulators, which is considering the same question in relation to a number of reinsurers.

American International Group and Prudential Financial have already been designated as systemically important in the US. These companies are likely to be subject to tighter regulation. MetLife is reportedly fighting contesting stricter regulation and has said it may be forced to exit some business lines if it were subject to stricter capital rules.

The Treasury Department has said it does not comment on specific companies under review.