H.R.4248 - FSOC Designation Review Act114th Congress (2015-2016)
|Sponsor:||Rep. Westmoreland, Lynn A. [R-GA-3] (Introduced 12/15/2015)|
|Committees:||House - Financial Services|
|Latest Action:||House - 12/15/2015 Referred to the House Committee on Financial Services. (All Actions)|
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Summary: H.R.4248 — 114th Congress (2015-2016)All Information (Except Text)
Introduced in House (12/15/2015)
FSOC Designation Review Act
This bill amends the Financial Stability Act of 2010 to revise requirements for reevaluation and reaffirmation of determinations by the Financial Stability Oversight Council (FSOC) that the Board of Governors of the Federal Reserve System supervise and regulate U.S. or foreign nonbank financial companies.
The FSOC shall reevaluate such a determination not only annually (as under current law) but also upon the request of a nonbank financial company based on its representation that there has been a material change in its operations or activities or a material change in regulatory or market conditions.
FSOC must give the company as part of a reevaluation:
- a confidential written analysis of the specific elements of the company's exposures or activities that would be relevant to the FSOC's reevaluation; and
- opportunity to submit written materials in response, including a plan to obtain rescission of the determination or other materials relevant to the assessment.
The FSOC's written analysis must assess with particularity the company's vulnerability to financial distress, including consideration of its leverage, liquidity risk, and maturity mismatch, and existing regulatory scrutiny of the company.
Following a reevaluation the FSOC shall vote whether to reaffirm the determination; but if two-thirds of the voting members do not vote in favor of reaffirmation, the determination in question shall be rescinded immediately, subject at company option to judicial review. (Currently a determination is automatically reaffirmed upon reevaluation unless by a two-thirds vote the FSOC rescinds it.)