This story appeared in Bank Digest.
The Treasury Department has released a report to President Donald Trump regarding the designation processes of the Financial Stability Oversight Council. The memorandum responds to the Presidential Memorandum issued on April 21, 2017, and makes recommendations on ways to improve the FSOC's processes for nonbank financial company and financial market utility designations.
The report identifies five policy goals that should be achieved by the FSOC's designation processes: (1) leveraging the expertise of primary financial regulatory agencies; (2) promoting market discipline; (3) maintaining a level playing field among firms; (4) appropriately tailoring regulations to minimize burdens; and (5) ensuring the FSOC's designation analyses are rigorous, clear, and transparent.