Acting Comptroller Issues Statement at Financial Stability Oversight Council Meeting
April 23, 2023 / Source: OCC
WASHINGTON—Acting Comptroller of the Currency Michael J. Hsu today issued the following statement at the Financial Stability Oversight Council (FSOC) meeting:
Thank you, Madam Secretary, for your strong leadership of the Council on this important project. I would also like to extend my thanks to the FSOC staff and the staff of the Council members for their hard work on preparing this release.
I support the issuance of the proposed guidance for notice and comment. Revising the Interpretive Guidance on Nonbank Financial Company Designations is important to improve the balance and transparency of the Council’s work. In addition, the new proposed Analytical Framework describes the approach the Council would take in identifying, assessing, and responding to certain potential risks to U.S. financial stability. In my view, sharing this additional detail would both make it easier for the Council to explain its analysis of potential risks and create an opportunity for richer public input on the analysis. These two proposed documents would make clear that the Council has access to all tools provided to it by the Dodd-Frank Act so that we can monitor and address risks to financial stability effectively.
The proposed guidance will further the Council’s mission to monitor broadly for risks to the stability of the U.S. financial system and will build on the important work the Council is already doing in that regard through the Hedge Fund Working Group and other initiatives.
Recent events have underscored the importance to all Americans of having a sound and resilient financial system and make it essential that the Council has access to the broad range of tools that Congress provided it. It is also appropriate that the Council provide transparency to the public about how it might consider using those tools and invite public input. I support the publication of these documents for notice and comment in furtherance of those goals.