The Financial Stability Oversight Council Friday started theclock on a six-month process for designating a non-bank assystemically significant.

Ryan Schoen and others at Washington Analysis say in aninvestor's note, “While FSOC did not disclose which companies wereconsidered in today's meeting, we expect the list to be short(probably no more than five to seven institutions), including, butnot limited to, AIG, MetLife, Prudential, and GeneralElectric.”

In a statement to reporters, a Treasury Department spokesmanconfirmed that the FSOC is entering the “third stage” of itsprocess to determine whether an institution should be designatedSIFI.

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 says that, based on the timelines laid out in the statuteand regulations, Washington Analysis expects the final designationsto come in either in December or in the first quarter of 2013.

Before FSOC publicly announces its final determinations, it willprovide the nonbank financial company formal notice of at least onebusiness day Schoen says.

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 designatenonbank financial companies for supervision by the Federal ReserveSystem under enhanced prudential standards if it determines suchcompanies could pose a threat to U.S. financialstability.