Financial Stability Oversight Council Holds Meeting Ahead of Anniversary of Dodd-Frank Act
Tuesday, July 19, 2011
U.S. Treasury Department
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FINANCIAL STABILITY OVERSIGHT COUNCIL HOLDS MEETING AHEAD OF ANNIVERSARY OF DODD-FRANK ACT, FINALIZES CRITICAL RULE
WASHINGTON – As the first anniversary of the enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act approaches, the Financial Stability Oversight Council (Council) convened its seventh meeting today at the U.S. Department of the Treasury and approved the following documents and resolutions put forward during today's session: a final rule on the Council's authority to designate financial market utilities as systemically important; asecured creditor haircut study pursuant to section 215 of the Dodd-Frank Act; and the minutes of the May 24, 2011 and July 13, 2011 Council meetings. At today's meeting, members also discussed the Council's 2011 Annual Report, which will be finalized and released in the coming days.
Final Rule on Authority to Designate Financial Market Utilities as Systemically Important
Section 804 of the Dodd-Frank Act gives the Council the authority to designate as systemically important a financial market utility (FMU) if the Council determines that its failure or a disruption to its operations could create or increase the risk of significant liquidity or credit problems spreading among financial institutions or markets and thereby threaten the stability of the U.S. financial system. An FMU designated by the Council as systemically important would become subject to the requirements of Title VIII of the Dodd-Frank Act, including risk management standards and additional examinations.
An advance notice of proposed rulemaking (ANPR) on FMU designations was approved for public comment at the Council's November 2010 meeting. Additionally, the Council approved a Notice of Proposed Rulemaking (NPR) on FMU designations for public comment at its March 2011 meeting.
The final rule on FMU designations, as passed by the Council, is available at www.treasury.gov/FSOC.
Secured Creditor Haircut Study
Section 215 of the Dodd-Frank Act requires Council to conduct a study evaluating the importance of maximizing United States taxpayer protections and promoting market discipline with respect to the treatment of fully secured creditors in the utilization of the orderly liquidation authority authorized by the Dodd-Frank Act.
The study, as passed by the Council, will be available soon at www.treasury.gov/FSOC.
Minutes from the Council's May 24, 2011 and July 13, 2011 Meeting
The minutes, as passed by the Council, are available at www.treasury.gov/FSOC.
In attendance at the Council meeting were:
- Tim Geithner, Treasury Secretary (Chairperson of the Council);
- Ben Bernanke, Chairman of the Board of Governors of the Federal Reserve System;
- Edward DeMarco, Acting Director of the Federal Housing Finance Agency;
- Gary Gensler, Chairman of the Commodity Futures Trading Commission;
- Martin Gruenberg, Acting Chairman of the Federal Deposit Insurance Corporation;
- Debbie Matz, Chairman of the National Credit Union Administration;
- Mary Schapiro, Chairman of the U.S. Securities and Exchange Commission;
- John Walsh, Acting Comptroller of the Currency;
- William Haraf, Commissioner, California Department of Financial Institutions (non-voting member);
- John Huff, Director, Missouri Department of Insurance, Financial Institutions, and Professional Registration (non-voting member);
- David Massey, Deputy Securities Administrator, North Carolina Department of the Secretary of State, Securities Division (non-voting member); and
- Michael McRaith, Director of the Federal Insurance Office (non-voting member)
For more information about each member agency's financial reform implementation efforts, please follow the links below.