June 23, 2014

Lew testifies today on reforms, FSOC

June 24, 2014 – Treasury Secretary Jack Lew is expected to field questions from lawmakers today on financial reform and emerging threats during a House Financial Services Committee hearing today on the state of the Financial Stability Oversight Council, which Lew chairs.

Lew will go over the council's annual report, which also addresses the state of housing finance reform and the potential impact of student-loan debt on home and car buying.

NAFCU Senior Vice President of Government Affairs and General Counsel Carrie Hunt wrote the committee leaders to reiterate the association's call for better coordination of rulemaking among federal financial institution regulators and sharing of information about domestic financial services policy development, examinations, reporting requirements and enforcement.

The FSOC 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 will also testify tomorrow before the Senate Banking Committee.

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.