We have reviewed FSOC’s latest annual report, which continues the Council’s policy under both Presidents Obama and Trump of providing updated facts about global finance, a list of worries, and few concrete recommendations to member agencies or other bodies.  Much in the report reiterates long-pending FSOC issues (e.g., the need for the Legal Entity Identifier, the hunt for aggregate and cross-sectoral data, and the benefits of regulatory monitoring, information-sharing, and coordination).  However, the 2019 report does have two new sections covering nonbank mortgage companies and digital financial products and currencies.  Although virtually nothing is then said about what U.S. agencies are to do with regard to either new risk, FHFA Director Calabria subsequently said that he believes FSOC should use its new systemic activity-and-practice standards (see FSM Report SIFI32) to address nonbank origination and servicing.  A separate in-depth FedFin report discusses how this might be done.

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