U.S. Rep. Dennis Ross, R-Fla., part of the U.S. House leadership in his role as senior deputy majority whip, teamed up with U.S. Rep. John Delaney, D-Md., to introduce transparency to the Dodd-Frank Act.
Ross and Delaney unveiled the Financial Stability Oversight Council Improvement Act on Tuesday. The bill adds transparency to the Financial Stability Oversight Council (FSOC) set up by Dodd-Frank to discover risks to the economy.
Under Ross and Delaneys bill, financial companies pegged as Systemically Important Financial Institution (SIFI) will be able to identify and eliminate what the FSOC sees as risks. Both congressmen insisted companies would be forced to charge consumers more if they are designated as SIFIs.
Today, I am happy to join my colleague, Rep. John Delaney, in introducing bipartisan, common-sense legislation to increase the transparency of the FSOCs SIFI designation process of nonbanks, Ross said on Tuesday. Since its inception, the FSOC has been broadly criticized for its lack of transparency, flawed research and inadequate designation process. This legislation will codify a number of guidances to increase transparency issued by FSOC in February 2015. It will also create a path for a company to eliminate risk rather than being designated and ensure a companys primary regulator has a meaningful role in the SIFI designation process.
I introduced this legislation to make sure FSOCs decisions are not placing the cost of extra red tape on the backs of American families, Ross added.
To protect investors, consumers and taxpayers it is important that we identify systemic risk, Delaney insisted. I support the mission of the Financial Stability Oversight Council and want FSOC to operate in an effective, transparent and accountable way. This bipartisan legislation clarifies agency procedures, creates a more open process and provides additional paths to mitigate systemic risk for taxpayers."
Sources told Sunshine State News on Tuesday that the plan is to get the bill out of committee and to the House floor for a vote before sending it to the Senate. Currently, there is no sponsor on the Senate side.
Reach Kevin Derby at kderby@sunshinestatenews.com or follow him on Twitter: @KevinDerbySSN
