Patrick McHenryChairman

Washington, October 18, 2018 -

Financial Services Committee Chairman Jeb Hensarling (R-TX) released the following statement after the Financial Stability Oversight Council (FSOC) de-designated Prudential Financial Inc. as a Systemically Important Financial Institution (SIFI):

“I’m pleased to see FSOC finally acknowledge that there needs to be an off-ramp from Dodd-Frank Act’s permanent and cumbersome control over those financial institutions that were not to blame for the financial crisis ten years ago. Time and again, as we witnessed with its evisceration of G.E. Capital or the court’s ruling that its MetLife decision was ‘arbitrary and capricious,’ FSOC proved its one-size-fits-all SIFI designation process can harm our economy. Basing judgments on size of institutions alone rather than on the risk they assume continues to expose FSOC’s flawed theory of regulation. While the FSOC's de-designation of Prudential is an encouraging sign that we are moving towards more sensible financial regulations, there is still much to be done to fix the arbitrary SIFI designation process to make it more transparent.”