A group of lawmakers are seeking clarity with regard to the Federal Reserve’s framework for consolidated supervision of large financial institutions.
Sens. Thom Tillis (R-NC), Mike Crapo (R-ID), David Perdue (R-GA), Mike Rounds (R-SD) and Kevin Cramer (R-ND) have forwarded correspondence to Government Accountability Office (GAO) Comptroller General Gene Dodaro as a means of determining if guidance letters issued constitute a rule for the purposes of the Congressional Review Act (CRA).
“This framework imposes substantive requirements relating to capital, liquidity, corporate governance, and recovery and resolution planning,” the senators wrote. “Determining whether the LISCC Guidance is a rule under the CRA is particularly important because the Federal Reserve has never revealed the criteria by which certain supervised institutions become subject to the Large Institution Supervision Coordinating Committee (LISCC) designation and associated requirements.”
The LISCC is the Board of Governors of the Federal Reserve System’s enhanced regulatory and supervisory framework for large and complex financial institutions.
Tillis said the legislators are also seeking transparency.
“For too long, federal regulatory agencies have used rules masquerading as guidance to improperly regulate financial institutions,” Tillis said. “All government agencies should abide by the Administrative Procedure Act to remain transparent and accountable to Congress.”