Republican members of the Senate Banking Committee sent a letter to Secretary of the Treasury Steven Mnuchin urging him to review the procedures by which the Financial Stability Oversight Council ("FSOC") determines that non-bank financial companies should be supervised by the Fed (i.e., designated as systemically important financial institutions or "SIFIs").
The Senators said that the FSOC designation process lacks "transparency and accountability, insufficiently tracks data, and does not have a consistent methodology for determinations." As such, the letter asserts that the FSOC process has created "substantial new regulatory costs" while putting taxpayers on the hook for future bailouts.
The letter was signed by ten of the twelve Republican members of the Senate Banking Committee. (Bob Corker (R-TN) and Dean Heller (R-NV) did not sign the letter.)
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