The United States’ most powerful financial regulators gathered on March 24 via video conference for an unscheduled closed-door meeting of the Treasury Department’s Financial Stability Oversight Council (FSOC), the department announced in a statement. Treasury Secretary Janet Yellen hosted the meeting.
Details were sparse in the Finance statement, but said the staff of the Federal Reserve Bank of New York gave a presentation on market development. The gist of the presentation is exciting:
“The board discussed the current state of the banking sector and noted that while some institutions are experiencing stress, the US banking system remains sound and resilient.”
In addition, the council discussed the efforts of member agencies to monitor financial developments.
FSOC’s functions under the law are to “identify risks to the financial stability of the United States; promote market discipline; and respond to emerging threats to the stability of the US financial system.”
The market has reacted strongly to almost all his words and the meeting of the Chairman of the Federal Reserve Board Jerome Powell has spoken publicly as concerns about the spread of the American banking crisis.
House Financial Services Subcommittee Chairmen Andy Barr and Bill Huizenga sent a letter to Yellen on March 24 requesting unfinished minutes from the March 12 FSOC meeting and a March 10 special meeting with the board’s “leaders” to discuss the collapse of Silicon Valley Bank and other information.
REVEALED: A 2018 report from the Financial Stability Oversight Board shows regulators are aware of uninsured bank deposits and threats at Silicon Valley Bank.
But then the regulator did nothing.
Story here: https://t.co/WnBok11NjY
See the cigarette gun chart here pic.twitter.com/gqaGHaZipi
— David Sirota (@davidsirota) March 20, 2023
Barr and Huizenga criticized FSOC’s transparency and added, “FSOC’s failure to maintain its own website or issue its own press releases makes a difference between your role as FSOC Chairman and as Treasury Secretary.”
Related: The US Financial Stability Oversight Board identifies stablecoins and cryptos as a threat to the financial system
FSOC has repeatedly urged Congress to enact legislation governing crypto, calling on lawmakers to decide which regulators will oversee the crypto spot market and calling on Congress to close regulatory gaps.
Magazine: Unstablecoins: Depegging, bank runs and other risks loom