The Financial Stability Oversight Council (FSOC) would be subjected to congressional oversight to bolster transparency under legislation reintroduced by U.S. Rep. Tom Emmer (R-MN) on Friday.
Established under the Dodd-Frank Act of 2010, the FSOC can subject financial institutions to added regulatory burdens by declaring them “systemically important” institutions.
The Financial Stability Oversight Council Reform Act, H.R. 1459, would subject the FSOC to the congressional appropriations process and would streamline coordination and communication among regulators, Congress, financial institutions and consumers.
“Regulators in Washington need to be accountable to the American people,” Emmer said. “A recent review conducted by the Financial Services Committee highlighted the ‘arbitrary and inconsistent’ nature of FSOC actions and reiterated the need for improved oversight and review of our federal regulators.”
In addition to giving Congress authority to approve the budgets of the FSOC and the Office of Financial Research (OFR), H.R. 1459 would require OFR to generate quarterly reports. The measure would also establish a 90-day public notice period before releasing any reports, rules or regulations.
“The financial services industry plays a critical role in creating the capital and opportunities that drives Minnesota’s, and the nation’s, economy forward,” Emmer said. “I look forward to building on the progress this legislation made in the 114th Congress and ensuring federal overreach does not limit the ability of Minnesotan businesses to grow and thrive.”