PE Firms, Hedge Funds Plot Legal Strategy to Fend off FSOC's Dreaded Risk Labels

Also, Fed's Powell holds an unusual meeting with a hedge fund executive

The Financial Stability Oversight Council’s guidance for deeming firms a risk to the financial system is just a proposal. But the intended targets – hedge funds, private equity firms, asset managers and insurers – are already busy plotting how to thwart the changes once they are adopted.

Though some details are still being debated, sources say opponents …