Financial Stability Oversight Council

Financial Stability Oversight Council
3rd FSOC Meeting (January 18, 2011)
Agency overview
Formed July 21, 2011 (2011-07-21)
Jurisdiction United States Government
Agency executives Timothy Geithner, FSOC Chairperson & Secretary of the Treasury
Ben Bernanke, FRB Chairman
John Walsh, Acting Comptroller of the Currency
Mary Schapiro, SEC Chairman
Sheila Bair, FDIC Chairperson
Gary Gensler, CFTC Chairman
Edward DeMarco, FHFA Director
Debbie Matz, NCUA Chairman
Website
Treasury.gov/FSOC

The Financial Stability Oversight Council (FSOC) is a United States Federal government organization, established by Title I of the Dodd–Frank Wall Street Reform and Consumer Protection Act, which was signed into law by President Barack Obama on July 21, 2010.[1] The Dodd-Frank Act provides the Council with broad authorities to identify and monitor excessive risks to the U.S. financial system arising from the distress or failure of large, interconnected bank holding companies or non-bank financial companies, or from risks that could arise outside the financial system; to eliminate expectations that any American financial firm is "too big to fail"; and to respond to emerging threats to U.S. financial stability. The Act also designates the Secretary of the Treasury as Chairperson. Inherent to the FSOC's role as a consultative council is facilitation of communication among financial regulators. The FSOC has the authority to set aside certain financial regulations published by the Bureau of Consumer Financial Protection if those rules would threaten financial stability.

Contents

Organization

The Financial Stability Oversight Council has ten voting members:[2]

  1. Secretary of the Treasury (chairs the Council)
  2. Chairman of the Federal Reserve
  3. Comptroller of the Currency
  4. Director of the Bureau of Consumer Financial Protection
  5. Chairperson of the U.S. Securities and Exchange Commission
  6. Chairperson of the Federal Deposit Insurance Corporation
  7. Chairperson of the Commodity Futures Trading Commission
  8. Director of the Federal Housing Finance Agency
  9. the Chairman of the National Credit Union Administration Board
  10. an independent member (with insurance expertise), appointed by the President, with the advice and consent of the Senate, for a term of 6 years.

There are five non-voting members:

  1. Director of the Office of Financial Research (part of the Treasury Department and established by the Dodd-Frank Act) who is the Council's executive director
  2. Director of the Federal Insurance Office (part of the Treasury Department and established in this Act)
  3. a state insurance commissioner, to be designated by a selection process determined by the state insurance commissioners (2-year term)
  4. a state banking supervisor, to be designated by a selection process determined by the state banking supervisors (2-year term)
  5. a state securities commissioner (or officer performing like function) to be designated by a selection process determined by such state security commissioners (2-year term)

See also

Authorities

Activities

On July 26, 2011, the First Annual Financial Stability Oversight Council Report [3] was issued by the Council fulfilling the Congressional mandate to report on the activities of the Council. The Report is intended to describe significant financial market and regulatory developments, analyze potential emerging threats, and make certain recommendations. The July 26, 2011 report warned that the United States faces potential losses connected with the European debt crisis. [4]

References

  1. ^ "Bill Summary & Status - 111th Congress (2009 - 2010) - H.R.4173 - All Information - THOMAS (Library of Congress)". Library of Congress. http://thomas.loc.gov/cgi-bin/bdquery/z?d111:HR04173:@@@L&summ2=m&#major%20actions. Retrieved July 22, 2010. 
  2. ^ H.R. 4173, § 111
  3. ^ "2011 Annual Report". U.S. Department of the Treasury. http://www.treasury.gov/initiatives/fsoc/Pages/annual-report.aspx. Retrieved August 8, 2011. 
  4. ^ The Center for Public Integrity. "U.S. Stock Market Plunge Followed Financial Stability Oversight Council Warning". The National Law Review. http://www.natlawreview.com/article/us-stock-market-plunge-followed-financial-stability-oversight-council-warning. Retrieved August 8, 2011. 

External links