Washington, D.C. – This week, Congressman Tom Emmer (MN-06) introduced H.R. 3340, the Financial Stability Oversight Council Reform Act. This legislation would enhance congressional oversight of an unchecked, isolated and nontransparent governmental organization that has the power to force new regulations on financial institutions.
“American businesses and consumers are frustrated by an out of control federal bureaucracy,” said Emmer. “By restoring a transparent, constitutional process, Congress would have the opportunity to verify that the Financial Stability Oversight Council (FSOC) is performing its duties and not harming access capital for families and businesses. The financial services industry is incredibly important to Minnesota and while regulators certainly have their place, Congress must ensure that the appropriate checks and balances are in place to oversee the power of regulators in order to protect consumers and the rights of Americans.
The Financial Stability Oversight Council (FSOC) was created in 2010 under the Dodd-Frank Act. FSOC has the power to designate financial institutions as “systemically important” which results in greater regulatory burdens. Unfortunately, the designation process has lacked transparency thus far.
The legislation would give Congress the power to approve the budget for FSOC and the Office of Financial Research (OFR), create quarterly reporting requirements for OFR, and require OFR to provide at least a 90 day public notice and comment period before issuing any report, rule, or regulation. This increased oversight and transparency would ensure safe and competitive, financial markets, to help Americans purchase homes, cars and have access to higher education.
Congressman Tom Emmer represents Minnesota’s Sixth Congressional District and is a member of the Financial Services Committee.
The Financial Stability Oversight Council Reform Act is H.R. 3340. Click here to read the full text.