U.S. Rep. Tom Emmer (R-MN) reintroduced this week a bill that would bring the Financial Stability Oversight Council (FSOC) under congressional appropriations and oversight.
The Financial Stability Oversight Council Reform Act would give Congress the authority to approve the budget for the FSOC and the Office of Financial Research (OFR). It would also create quarterly reporting requirements for the OFR and require the OFR to provide at least 90 days for a public notice and comment period before issuing any report, rule or regulation.
Emmer said the increased transparency would ensure FSOC’s independence and support safe and competitive financial markets.
“Under President Biden, the Financial Stability Oversight Council has morphed into a political weapon for the administrative state,” Emmer said. “Strong financial markets require transparent regulators. By restoring the congressional oversight process, we will ensure that the FSOC is acting in the best interest of the American economy and not on the political whims of the Biden administration.”
The Financial Stability Oversight Council Reform Act is cosponsored by Reps. French Hill (R-AR), Young Kim (R-CA), Bill Posey (R-FL), Pete Sessions (R-TX), Blaine Luetkemeyer (R-MO), Scott Fitzgerald (R-WI), Barry Loudermilk (R-GA), Byron Donalds (R-FL), Andy Barr (R-KY), and John Rose (R-TN).
FSOC was established in 2010 under the Dodd-Frank Wall Street Reform and Consumer Protection Act as an interagency body made up of the heads of United States’ financial regulators. Its purpose is to identify and address potential threats to U.S. financial stability.
FSOC has the authority to designate both banks and nonbanks as systemically important financial institutions (SIFI) and subject them to greater regulatory scrutiny by the Federal Reserve. The Office of Financial Research (OFR) is an independent bureau tasked with supporting the FSOC and its member agencies with research.
The Financial Stability Oversight Council Reform Act is supported by the Small Business & Entrepreneurship Council, the Bank Policy Institute and the Securities Industry and Financial Markets Association.