--Retransmitting, Correcting Time In Last Paragraph To 16:30 ETnnBy Denny GulinonnWASHINGTON (MNI) - The perhaps least-desired Washington honor was bestowed on eight financial market firms Wednesday, all of which will now face additional risk management requirements compliments of the nation's new most powerful financial regulatory presence, the Financial Stability Oversight Council. nnAs the group's meeting began Wednesday afternoon, the firms had not yet been informed that they are now officially designated as

systemically important, bringing them into the regulatory spotlight in a way that could prove to be expensive. nnAlthough some financial market and services firms are so dominant that they cannot avoid the so-called SIFI designation, many on the borderline would rather escape the new title since it brings with it the need for costly risk management and in some cases, extra capital buffers. nnThe firms are only the first to be so designated and the eventual list will include the obvious and some not-so-obvious financial services companies, whether they are banks or non-banks such as insurance companies, hedge funds, asset management firms and up-to-now unregulated money funds. nn"As we approach the anniversary of the Dodd-Frank Wall Street Reform and Consumer Protection Act this Saturday, it is worth remembering why these reforms are so important," FSOC Chairman Tim Geithner said to his peers on the Council -- which includes the head of every financial market regulatory agency in Washington. nn"If you need a reminder of why these reforms are important, then take a moment to reflect on the number of people still out of work, at risk of losing their home, or struggling to finance a growing small business," Geithner said. "And if those reminders are not enough, consider the failures of MF Global and Peregrine Financial, the risk management failures at JPMorgan, the abuses surrounding LIBOR, or the financial threats from Europe. This work is not done." nnGeithner gave SEC Chairman Mary Schapiro a platform from which to promote her recommendations for money market fund reforms, proposals which have split the Commission. They are still vulnerable to "cascading failures" and the Commission, she said, is studying the issue closely. nnBoth Geithner and Federal Reserve Chairman Ben Bernanke followed up with their endorsements of her efforts to devise a rule imposing changes on the funds to put out for comment. nnThe Council approved its annual report, the eight designations and its recommendations for contingent capital buffers in both closed and open sessions. Additional details are being withheld from publication by the Treasury Department until 16:30 ET. nn** MNI Washington Bureau: 202-371-2121 **