U.S. Rep. Ed Royce (R-CA) released the following statement after questioning witnesses at the House Committee on Financial Services hearing “Examining the Dangers of the FSOC’s Designation Process and its Impact on the U.S. Financial System”:
“Today’s hearing and witnesses further confirm that FSOC’s designation of non-bank financial institutions as systemically important financial institutions (SIFIs) is a process that lacks transparency, appropriate oversight, and bipartisan input. SIFI designations open the door to future taxpayer bailouts at a time when hardworking Americans have tightened their belts. These labels are distortions of a free and competitive market,” said Rep. Royce. “Increased regulatory burdens for midsize banks and asset managers will result in more costly investing for consumers, many of whom are every day Americans saving for their retirement or their child’s college tuition. I’m discouraged by the Council’s lack of bipartisan voices, and think that FSOC would be well-served by a more inclusionary and collaborative operating model.”
Click below to watch video of Rep. Royce’s questions for panel witnesses, and their answers.
The Dodd-Frank Act empowers the Financial Stability Oversight Council (FSOC) to designate non-bank financial institutions as “systemically important financial institutions,” or SIFIs, …read more
Source: U.S. Rep. Ed Royce