The Financial Stability Oversight Council’s (FSOC) methods of designating certain non-bank institutions as systemically-important, and therefore “too big to fail,” are inconsistent and arbitrary, according to a staff report recently published by the House Financial Services Committee.
The report’s findings are based on documents the committee requested almost two years ago, as well as sworn testimony by Treasury Department officials, both of which were obtained by congressional subpoena.
Read on to find out more about the report’s findings and what House Financial Services Committee Chairman Rep. Jeb Hensarling (R-Texas) has to say about them.