Financial Stability Oversight Council
Encyclopedia
The Financial Stability Oversight Council (FSOC) is a United States Federal government
organization, established by Title I of the Dodd–Frank Wall Street Reform and Consumer Protection Act, which was signed into law by President
Barack Obama
on July 21, 2010. Dodd-Frank provides the Council with broad authorities to identify and monitor excessive risks
to the U.S. financial system
arising from the distress or failure of large, interconnected bank holding companies or non-bank financial companies, or from risks that could arise outside the financial system; to eliminate expectations that any American financial firm is "too big to fail
"; and to respond to emerging threats to U.S. financial stability. The Act also designates the Secretary of the Treasury
as Chairperson.
There are five non-voting members:
Federal government of the United States
The federal government of the United States is the national government of the constitutional republic of fifty states that is the United States of America. The federal government comprises three distinct branches of government: a legislative, an executive and a judiciary. These branches and...
organization, established by Title I of the Dodd–Frank Wall Street Reform and Consumer Protection Act, which was signed into law by President
President of the United States
The President of the United States of America is the head of state and head of government of the United States. The president leads the executive branch of the federal government and is the commander-in-chief of the United States Armed Forces....
Barack Obama
Barack Obama
Barack Hussein Obama II is the 44th and current President of the United States. He is the first African American to hold the office. Obama previously served as a United States Senator from Illinois, from January 2005 until he resigned following his victory in the 2008 presidential election.Born in...
on July 21, 2010. Dodd-Frank provides the Council with broad authorities to identify and monitor excessive risks
Systemic risk
In finance, systemic risk is the risk of collapse of an entire financial system or entire market, as opposed to risk associated with any one individual entity, group or component of a system. It can be defined as "financial system instability, potentially catastrophic, caused or exacerbated by...
to the U.S. financial system
Financial system
In finance, the financial system is the system that allows the transfer of money between savers and borrowers. A financial system can operate on a global, regional or firm specific level...
arising from the distress or failure of large, interconnected bank holding companies or non-bank financial companies, or from risks that could arise outside the financial system; to eliminate expectations that any American financial firm is "too big to fail
Too Big to Fail
Too Big to Fail is a television drama film in the United States broadcast on HBO on May 23, 2011. It is based on the non-fiction book Too Big to Fail by Andrew Ross Sorkin. The TV film was directed by Curtis Hanson...
"; and to respond to emerging threats to U.S. financial stability. The Act also designates the Secretary of the Treasury
United States Secretary of the Treasury
The Secretary of the Treasury of the United States is the head of the United States Department of the Treasury, which is concerned with financial and monetary matters, and, until 2003, also with some issues of national security and defense. This position in the Federal Government of the United...
as Chairperson.
Organization
The Financial Stability Oversight Council has ten voting members:- Secretary of the TreasuryUnited States Secretary of the TreasuryThe Secretary of the Treasury of the United States is the head of the United States Department of the Treasury, which is concerned with financial and monetary matters, and, until 2003, also with some issues of national security and defense. This position in the Federal Government of the United...
(chairs the Council) - Chairman of the Federal ReserveChairman of the Federal ReserveThe Chairman of the Board of Governors of the Federal Reserve System is the head of the central banking system of the United States. Known colloquially as "Chairman of the Fed," or in market circles "Fed Chairman" or "Fed Chief"...
- Comptroller of the Currency
- Director of the Bureau of Consumer Financial Protection
- Chairperson of the U.S. Securities and Exchange Commission
- Chairperson of the Federal Deposit Insurance CorporationFederal Deposit Insurance CorporationThe Federal Deposit Insurance Corporation is a United States government corporation created by the Glass–Steagall Act of 1933. It provides deposit insurance, which guarantees the safety of deposits in member banks, currently up to $250,000 per depositor per bank. , the FDIC insures deposits at...
- Chairperson of the Commodity Futures Trading CommissionCommodity Futures Trading CommissionThe U.S. Commodity Futures Trading Commission is an independent agency of the United States government that regulates futures and option markets....
- Director of the Federal Housing Finance AgencyFederal Housing Finance AgencyThe Federal Housing Finance Agency is an independent federal agency created as the successor regulatory agency resulting from the statutory merger of the Federal Housing Finance Board , the Office of Federal Housing Enterprise Oversight , and the U.S...
- the Chairman of the National Credit Union Administration Board
- an independent member (with insurance expertise), appointed by the President, with the advice and consentAdvice and consentAdvice and consent is an English phrase frequently used in enacting formulae of bills and in other legal or constitutional contexts, describing a situation in which the executive branch of a government enacts something previously approved of by the legislative branch.-General:The expression is...
of the Senate, for a term of 6 years.
There are five non-voting members:
- Director of the Office of Financial ResearchOffice of Financial ResearchThe Office of Financial Research is an agency established by the Dodd-Frank Wall Street Reform and Consumer Protection Act within the Treasury Department to improve the quality of financial data available to policymakers and facilitate more robust and sophisticated analysis of the financial...
(part of the Treasury Department and established by the Dodd-Frank Act) who is the Council's executive director - Director of the Federal Insurance Office (part of the Treasury Department and established in this Act)
- a state insurance commissioner, to be designated by a selection process determined by the state insurance commissioners (2-year term)
- a state banking supervisor, to be designated by a selection process determined by the state banking supervisors (2-year term)
- a state securities commissioner (or officer performing like function) to be designated by a selection process determined by such state security commissioners (2-year term)
See also
- Office of Financial ResearchOffice of Financial ResearchThe Office of Financial Research is an agency established by the Dodd-Frank Wall Street Reform and Consumer Protection Act within the Treasury Department to improve the quality of financial data available to policymakers and facilitate more robust and sophisticated analysis of the financial...
- Systemic riskSystemic riskIn finance, systemic risk is the risk of collapse of an entire financial system or entire market, as opposed to risk associated with any one individual entity, group or component of a system. It can be defined as "financial system instability, potentially catastrophic, caused or exacerbated by...
- Dodd-Frank Wall Street Reform and Consumer Protection Act
- Federal Financial Institutions Examination CouncilFederal Financial Institutions Examination CouncilThe Federal Financial Institutions Examination Council, or FFIEC, is a formal interagency body of the United States government empowered to prescribe uniform principles, standards, and report forms for the federal examination of financial institutions by the Board of Governors of the Federal...
- Volcker RuleVolcker RuleThe Volcker Rule is a specific section of the Dodd–Frank Wall Street Reform and Consumer Protection Act originally proposed by American economist and former United States Federal Reserve Chairman Paul Volcker to restrict United States banks from making certain kinds of speculative investments that...