Center for American Progress
See all topics
See all states
See all topics
The Center for American Progress submitted comment letters to the Financial Stability Oversight Council on their proposed analytic risk framework and guidance on nonbank financial company designations.
Building an Economy for All, Economic Development and Governance, Finance Reform, Trump Administration+1 More
Associate Director, Media Relations
Director, Federal Affairs
Associate Director, State and Local Government Affairs
On April 21, 2023, the Financial Stability Oversight Council (FSOC) issued two proposals that will improve the FSOC’s ability to manage threats to the financial system. The first proposal establishes a framework for how the council identifies, assesses, and addresses risks to financial stability. The second proposal clarifies the FSOC’s procedures for designating certain nonbank financial companies for enhanced oversight by the Federal Reserve. The proposed guidance would also remove the inappropriate barriers to the designation process imposed under the Trump administration.
The FSOC was established by Congress under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) following the financial crisis of 2007–2008. Dodd-Frank granted the FSOC broad authority to monitor and respond to financial stability risks. The ability to designate nonbanks is among the council’s most powerful tools authorized by the statute and proved critical in the aftermath of the crisis. As financial actors endure economic shocks, such as those from climate disasters and the COVID-19 pandemic, the financial system must be more resilient than ever, and the FSOC must have access to its full set of tools to maintain financial stability. CAP commends the FSOC for issuing these important proposals.
Click here to read CAP’s comment letter on the FSOC analytic framework.
Click here to read CAP’s comment letter on the FSOC’s nonbank designations.
The positions of American Progress, and our policy experts, are independent, and the findings and conclusions presented are those of American Progress alone. A full list of supporters is available here. American Progress would like to acknowledge the many generous supporters who make our work possible.
Associate Director, Financial Regulation
We are focused on building an inclusive economy by expanding worker power, investing in families, and advancing a social compact that encourages sustainable and equitable growth.
on Inclusive Economy