Presidential Memorandum Regarding the Financial Stability Oversight Council

April 21, 2017

On Friday, April 21, 2017, President Trump issued a memorandum directing the Secretary of the Treasury to conduct a review of the Financial Stability Oversight Council (FSOC), specifically the determination and designation processes, and provide a written report to the President within 180 days of the date of the memorandum. The Treasury Secretary will review the following: whether the determination and designation processes are sufficiently transparent, whether these processes provide entities with adequate due process, whether these processes give market participants the expectation that the Federal Government will shield supervised or designated entities from bankruptcy, whether these processes adequately consider the costs of any determination or designation, whether entities subject to an FSOC determination or designation are provided a meaningful opportunity to have their determinations or designations reevaluated in a timely and appropriately transparent manner, and whether prior to being subject to an FSOC determination or designation, the entity should be provided with information on how to reduce perceived risk, so as to avoid being subject to FSOC rulings. Additionally, the Treasury Secretary is directed to evaluate and report if the activities of the FSOC are consistent with Executive Order 13772 the President signed in early February of 2017; Core Principles for Regulating the US Financial System.