This story appeared in Bank Digest.
The Republican staff of the House Financial Services Committee has released a report entitled "The Arbitrary and Inconsistent FSOC Nonbank Designation Process," which contends that the Financial Stability Oversight Council acts inconsistently and arbitrarily in exercising its power to designate certain nonbank companies as "too big to fail." The report is based on documents requested by the committee nearly two years ago and the sworn testimony of Treasury Department officials.
According to a committee press release, the report details the non-public analysis associated with the FSOC's processes to designate certain firms as "systemically important financial institutions" and therefore "too big to fail." Committee Chairman Jeb Hensarling said, "The release of this staff report brings some much-needed transparency and oversight to FSOC, and the information contained in the documents clearly demonstrates the need for the accountability reforms Republican have proposed in the Financial CHOICE Act."