Today, U.S. Secretary of the Treasury Janet L. Yellen convened a meeting of the Financial Stability Oversight Council (Council) in executive and public sessions at the U.S. Department of the Treasury (Treasury).
During the executive session, the Council heard a presentation from staff of the Federal Reserve Bank of New York on market developments related to digital assets. Council members stated that they continue to monitor developments related to digital assets and that spillovers to the traditional financial system have remained limited.
The Council also received an update from Treasury staff on work by the Inter-Agency Working Group on Treasury Market Surveillance (IAWG). Council members discussed steps agencies are taking to enhance the resilience of the U.S. Treasury market, as described in the staff progress report issued by the IAWG on November 10, 2022.
Additionally, the Council heard a presentation from staff of the Securities and Exchange Commission (SEC) on its proposed rule on open-end funds, which is intended to address the underlying structural liquidity mismatch in these funds. Council members discussed the importance of reforms to address the potential risks to financial stability from liquidity transformation in open-end funds.
During the public session, the Council received an update from the Federal Reserve Board on the transition from LIBOR to alternative reference rates, highlighting the importance of remediating legacy contracts before the publication of LIBOR ends.
The Council also received a presentation from the Federal Reserve Board on its work on climate-related financial risks, including the Federal Reserve Board’s pilot climate scenario analysis exercise and proposed principles for the management of climate-related financial risks for large banking organizations.
Additionally, the Council heard a presentation on the Council’s 2022 annual report and voted unanimously to approve the report.
The Council also voted to approve the minutes of its previous meeting on November 4, 2022.
In attendance at the Council meeting at Treasury or virtually were the following members:
- Janet L. Yellen, Secretary of the Treasury (Chairperson of the Council)
- Jerome H. Powell, Chair, Board of Governors of the Federal Reserve System
- Michael J. Hsu, Acting Comptroller of the Currency
- Rohit Chopra, Director, Consumer Financial Protection Bureau
- Gary Gensler, Chair, Securities and Exchange Commission
- Martin Gruenberg, Acting Chairman, Federal Deposit Insurance Corporation
- Rostin Behnam, Chairman, Commodity Futures Trading Commission
- Sandra L. Thompson, Director, Federal Housing Finance Agency
- Todd M. Harper, Chairman, National Credit Union Administration
- Thomas Workman, Independent Member with Insurance Expertise
- Steven Seitz, Director, Federal Insurance Office (non-voting member)
- Charles G. Cooper, Commissioner, Texas Department of Banking (non-voting member)
- Elizabeth K. Dwyer, Superintendent of Financial Services, Rhode Island Department of Business Regulation (non-voting member)
- Melanie Lubin, Securities Commissioner, Office of the Attorney General of Maryland, Securities Division (non-voting member)
Additional information regarding the Council, its work, and the recently approved annual report and meeting minutes is available at http://www.fsoc.gov.
