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Dodd-Frank's Financial Monster Council: The FSOC 

July 8, 2014
Norbert Michel, Forbes

Criticism of the Financial Stability Oversight Council (FSOC) has been quietly building inside the financial industry.  Most of the criticism has centered on the FSOC’s lack of transparency and clear standards with respect to designating large financial firms as systemically important financial institutions, the so-called SIFIs.

AEI’s Peter Wallison has just given a terrific recap of these issues and Treasury’s feeble defense of FSOC, but many outsiders still aren’t familiar with the FSOC.  That’s most unfortunate because it’s one of the 2010 Dodd–Frank Wall Street Reform and Consumer Protection Act’s worst creations.  Given the calamity that is Dodd-Frank, such a distinction can’t be given out too lightly.

Think of the Dodd–Frank Act as a giant squid.  Both creatures use about a dozen appendages to trap their victims.  The much publicized Consumer Financial Protection Bureau has a slightly longer reach than Dodd-Frank’s other tentacles, but it is by no means the beast’s most dangerous feature.

Read more: Forbes

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