Today, Congresswoman Maxine Waters (D-CA), Ranking Member of the Committee on Financial Services, and Congressman Randy Hultgren (R-IL), introduced a bipartisan bill to make a technical correction to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank), and address an issue regarding the term of the Financial Stability Oversight Council (FSOC) independent member with insurance expertise.
Under current law, it is unclear if the FSOC member with insurance expertise, who is nominated by the President and confirmed by the Senate to serve six years, can continue serving in this position as an acting official once the member’s term expires. The term of Roy Woodall, the current FSOC independent member with insurance expertise, expires on September 30 of this year. His successor has not yet been nominated. This legislation allows the FSOC independent member with insurance expertise to remain in the position past his or her term for the earlier of (1) 18 months or (2) when a successor is confirmed. This is similar to the term of a Commissioner at the Securities and Exchange Commission.
“This legislation is an example of cooperation across the aisle in order to make a commonsense technical correction to improve Dodd-Frank,” said Ranking Member Waters. “I am pleased to join with Congressman Hultgren in leading this effort.”
FSOC was created by Dodd-Frank for the purpose of identifying risks to financial stability that could arise from the material financial distress, failure, or ongoing activities, of large, interconnected bank holding companies, as well as nonbanks; promoting market discipline by eliminating expectations on the part of market participants that the government will shield such participants from losses; and responding to emerging threats to financial stability. The FSOC is composed of ten voting members and five nonvoting members.
Read the bill here. The bipartisan bill is cosponsored by Representatives Carolyn Maloney (D-NY), Ed Royce (R-CA), Brad Sherman (D-CA), David Scott (D-GA), Peter King (R-NY), Nydia Velazquez (D-NY), Steven Pearce (R-NM), Gregory Meeks (D-NY), Dennis Ross (R-FL), William Lacy Clay (D-MO), Gwen Moore (D-WI), Robert Pittenger (R-NC), Emanuel Cleaver (D-MO), Luke Messer (R-IN), Ed Perlmutter (D-CO), Bill Foster (D-IL), Daniel Kildee (D-MI), Joyce Beatty (D-OH), Bruce Poliquin (R-ME), Josh Gottheimer (D-NJ), Lee Zeldin (R-NY).