House FinServ today heard testimony again from Secretary Lew on the FSOC’s annual report. As always, the session included coverage of issues unrelated to financial services, including several testy exchanges over payments made to Iran. Mr. Lew strongly defended the CFPB following the Wells Fargo case and indicated that FSOC will monitor the impact of the SEC’s MMF rules – doubtless recognition of the trends evident in OFR data analyzed for clients earlier today and growing market jitters. However, in the Q&A he made clear that these rules are necessary and that he has not seen signs that they have led to dislocations or significant funding problems. Mr. Lew also strongly defended the FSB and the U.S.’s role on it, suggesting this is necessary to ensure high-quality global action. This report analyzes today’s session.

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