U.S. Rep. Tom Emmer (R-MN) on Jan. 11 sponsored legislation that aims to increase transparency and support safe and competitive financial markets by increasing congressional oversight of the Financial Stability Oversight Council (FSOC) and the Office of Financial Research.
Rep. Emmer sponsored the Financial Stability Oversight Council Reform Act, H.R. 6962, with 10 Republican cosponsors, including U.S. Reps. French Hill (R-AR), Young Kim (R-CA), and Andy Barr (R-KY) to place the FSOC under the regular appropriations process and require certain quarterly reporting and public notice and comment requirements for the Office of Financial Research.
“Under President Biden, the Financial Stability Oversight Council has morphed into a political weapon for the administrative state,” Rep. Emmer said. “Strong financial markets require transparent regulators. By restoring the congressional oversight process, we will ensure that the FSOC is acting in the best interest of the American economy and not on the political whims of the Biden administration.”
The purpose of the FSOC is to identify and address potential threats to America’s financial stability. The FSOC has the authority to designate both banks and nonbanks as systemically important financial institutions (SIFI) and subject them to greater regulatory scrutiny by the Federal Reserve, according to a bill summary provided by Rep. Emmer’s staff.
If enacted, H.R. 6962 would give Congress the authority to approve the budget for the FSOC and the Office of Financial Research (OFR), create quarterly reporting requirements for the OFR, and require the OFR to provide at least 90 days for a public notice and comment period before issuing any report, rule, or regulation, the summary says.
The measure has garnered support from the Small Business & Entrepreneurship Council, the Bank Policy Institute, and the Securities Industry and Financial Markets Association.