Acting Comptroller of the Currency Michael J. Hsu praised the work of the Financial Stability Oversight Council (FSOC) meeting, according to a news release.
"Thank you, madam secretary, for your strong leadership of the Council on this important project," Hsu said. "I would also like to extend my thanks to the FSOC staff and the staff of the Council members for their hard work on preparing this release."
Hsu said he supports the issuance of the proposed guidance for notice and comments on Nonbank Financial Company Designations.
"Revising the Interpretive Guidance on Nonbank Financial Company Designations is important to improve the balance and transparency of the Council’s work," he said. "In addition, the new proposed Analytical Framework describes the approach the Council would take in identifying, assessing and responding to certain potential risks to U.S. financial stability. In my view, sharing this additional detail would both make it easier for the Council to explain its analysis of potential risks and create an opportunity for richer public input on the analysis. These two proposed documents would make clear that the Council has access to all tools provided to it by the Dodd-Frank Act so that we can monitor and address risks to financial stability effectively."
The proposed guidance "will further the Council’s mission to monitor broadly for risks to the stability of the U.S. financial system and will build on the important work the Council is already doing in that regard through the Hedge Fund Working Group and other initiatives," Hsu said.
The council was created in 2010 under the Dodd-Frank Wall Street Reform and Consumer Protection Act and "is charged by statute with identifying risks to the financial stability of the United States, promoting market discipline and responding to emerging threats to the stability of the U.S. financial system," according to the Department of Treasury website.
It is chaired by the Secretary of the Treasury and has 10 voting members and five nonvoting members, "bringing together the expertise of federal financial regulators, state regulators and an independent insurance expert appointed by the president," the website said.
