Source: United States House of Representatives – Congressman Bill Foster (11th District of Illinois)
Washington, DC – Today, the U.S. House of Representatives passed Rep. Bill Foster’s (D-IL) bipartisan FSOC Improvement Act. This legislation would make the Financial Stability Oversight Council (FSOC) more responsive to emerging threats by clarifying the process of determining whether a financial firm is systemically important to the financial system.
Specifically, this legislation requires FSOC to work with a company and its primary regulator to mitigate risks associated with its business activities before designating the company in its entirety as a Systemically Important Financial Institution (SIFI)—a lengthy and resource-intensive process that may delay a more immediate regulatory response.
“Since FSOC was created, lawmakers and administration officials have debated the process of determining if a firm poses a risk to our financial system,” said Rep. Foster. “Past efforts by FSOC to designate firms’ risk levels have been controversial or short-lived. This bipartisan legislation strengthens FSOC’s ability to identify and address emerging threats to financial stability and consumers by promoting a more consistent, accountable, and effective approach to oversight.”
The FSOC Improvement Act is cosponsored by Representatives Bill Huizenga (R-MI), Josh Gottheimer (D-NJ), Young Kim (R-CA), Brad Sherman (D-CA), Brittany Pettersen (D-CO), Ritchie Torres (D-NY), Frank Lucas (R-OK), Daniel Meuser (R-PA), Emanuel Cleaver (D-MO), Chrissy Houlahan (D-PA), David Scott (D-GA), Brad Schneider (D-IL), Vicente Gonzalez (D-TX), Ann Wagner (R-MO), Janelle Bynum (D-OR), Troy Downing (R-MT), Monica De La Cruz (R-TX), Mike Lawler (R-NY), Jim Himes (D-CT), and Zach Nunn (R-IA). The bill now heads to the Senate for consideration.
A copy of the legislation can be found here.
###