FSOC Treads Cautious Middle Path on Climate-Risk Action
As we noted yesterday, the Financial Stability Oversight Council has now complied with President Biden’s executive order (see FSM Report GREEN8), compiling an exhaustive assessment of the financial-stability implications of climate risk and what might best be done about it. Other than administrative action in areas such as procurement, the Biden order actually mandated little specific action, a stance dictated not only by the independent charters of key financial agencies, but also Treasury’s hesitancy to press near-term stress tests, capital buffers, or other hard-wire interventions.