AEI Launches Offensive Against Financial Stability Oversight Council
On May 6, the American Enterprise Institute (AEI) hosted a luncheon meeting in the Rayburn Building of the House of Representatives titled "The FSOC's Regulation of SIFIs," an intense hour and a half session designed mainly to brief congressional staff, evidently predominantly Republican, on the message of elements of the financial services industry that are opposed to the implementation of title I of the Dodd-Frank Act, which created several new entities to help manage the next episode of the ongoing, permanent financial crisis, including the Financial Stability Oversight Council (FSOC).
Civilians are not usually privileged to attend meeting like this, so AEI has done a service by opening and broadcasting this one.
Composed of the heads of the financial regulators, the FSOC is empowered to identify risks to the stability of the financial system and to subject the largest, "too big to fail" banks and a group of nonbank financial institutions to be determined as systemically important financial institutions (SIFIs) to enhanced supervision by the Federal Reserve Board.
Readers may recall that the official narrative of the financial crisis from the Ministry of Truth is that the agencies that failed to prevent the 2008 episode lacked sufficient powers over nonbanks to prevent the crisis from having a devastating impact on the economy that lingers to this day. This narrative is the moral equivalent of the argument that the reason the nation was attacked on 9/11 was that it didn't have a Department of Homeland Security.
The theme of this week's articles will be to sketch out details of the industry campaign to discredit the FSOC, then report on the so-called "open meeting," at which the 2014 edition of the annual report of the FSOC was unveiled, and conclude with a report of the most recent testimony of Treasury Secretary Jack Lew, at which the industry objections were raised and repeated by a succession of Republican members of the House Financial Services Committee.
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http://www.moneynews.com/robert-feinberg/aei-fsoc-sifi-government/2014/05/12/id/570746/