June 20, 2014

Lew delivers FSOC annual report this week

June 23, 2014 – This week, the House Financial Services Committee and the Senate Banking Committee will hear from Treasury Secretary Jack Lew on the Financial Stability Oversight Council's annual report, which covers milestones in financial reform and emerging threats.

The FSOC, chaired by Lew, includes as voting members the top regulators at NCUA, the Federal Reserve Board, FDIC, Office of the Comptroller of the Currency, CFPB, Securities and Exchange Commission and Commodity Futures Trading Commission. Lew testifies Tuesday before the House Financial Services Committee and Wednesday before the Senate Banking Committee.

NAFCU has urged Lew to encourage better coordination of rulemaking among federal financial institution regulators and sharing of information about domestic financial services policy development, examinations, reporting requirements and enforcement since the council's inception.

In its annual report, the council notes "a number of key milestones in financial reform implementation, including finalization of the Volcker Rule, bank capital rules, a supplementary leverage ratio for the largest banks," among other items this past year. The council also identified emerging threats and reforms, including developments in financial products, services and business practices; risk-taking incentives; interest-rate volatility; and operational risks.

In related news, two bills addressing transparency at the FSOC were reported out by the House Financial Services Committee last week.