Senate Banking Committee Chairman Tim Johnson highlighted areas of progress noted in the Financial Stability Oversight Council’s annual report, saying “all indicators point to a well-coordinated FSOC.”
“But more needs to be done to improve our nation’s financial stability, and some high priority rules await completion by prudential regulators,” Johnson said. “These include enhanced prudential standards for large, systemic firms required by Wall Street Reform, the Basel III agreements, and the Volcker Rule. FSOC itself also continues to work on the nonbank SIFI designations. We also expect additional reforms and action from the regulators on money market funds, the tri-party repo market, and other proposals to curtail systemic risk and ensure no firm is ‘too big to fail.”
Johnson said that while it is important to get Dodd-Frank rules right, the three-year anniversary of the legislation is fast-approaching.
“The remaining pieces of Wall Street reform must be finalized soon so that Congress can appropriately assess whether it is necessary to do more,” Johnson said.
The FSOC is composed of several different agencies, including the OCC, FDIC, Federal Reserve and CFTC, and is headed by U.S. Treasury Secretary Jack Lew.