Revving up another issue for his legislative package, Senate Banking Chairman Shelby (R-AL) today called Treasury Secretary Lew to account for FSOC process and actions. As has become typical, Democrats defended the need for designation, but several – including Sen. Warren (D-MA) – also expressed interest in making de-designation more straightforward and/or restructuring the FSOC to give it an independent chairman. Sen. Shelby pressed on the extent to which FSOC acts in lock-step with the Financial Stability Board, but Ranking Member Brown (D-OH) countered that FSOC has designated too few SIFIs, specifically citing the need to act on clearinghouses. Reflecting pending Congressional work to alter the dollar threshold at which banks are subject to increased prudential regulation, Secretary Lew reiterated Administration opposition to change.
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