(1)
In general
The purposes of the Council are—
(A)
to identify risks to the financial stability of the United States that could arise from the material financial distress or failure, or ongoing activities, of large, interconnected bank holding companies or nonbank financial companies, or that could arise outside the financial services marketplace;
(B)
to promote market discipline, by eliminating expectations on the part of shareholders, creditors, and counterparties of such companies that the Government will shield them from losses in the event of failure; and
(C)
to respond to emerging threats to the stability of the United States financial system.
(2)
Duties
The Council shall, in accordance with this subchapter—
(A)
collect information from member agencies, other Federal and State financial regulatory agencies, the Federal Insurance Office and, if necessary to assess risks to the United States financial system, direct the Office of Financial Research to collect information from bank holding companies and nonbank financial companies;
(B)
provide direction to, and request data and analyses from, the Office of Financial Research to support the work of the Council;
(C)
monitor the financial services marketplace in order to identify potential threats to the financial stability of the United States;
(D)
to
1
So in original. The word “to” probably should not appear.
monitor domestic and international financial regulatory proposals and developments, including insurance and accounting issues, and to advise Congress and make recommendations in such areas that will enhance the integrity, efficiency, competitiveness, and stability of the U.S. financial markets;
(E)
facilitate information sharing and coordination among the member agencies and other Federal and State agencies regarding domestic financial services policy development, rulemaking, examinations, reporting requirements, and enforcement actions;
(F)
recommend to the member agencies general supervisory priorities and principles reflecting the outcome of discussions among the member agencies;
(G)
identify gaps in regulation that could pose risks to the financial stability of the United States;
(H)
require supervision by the Board of Governors for nonbank financial companies that may pose risks to the financial stability of the United States in the event of their material financial distress or failure, or because of their activities pursuant to
section 5323 of this title;
(I)
make recommendations to the Board of Governors concerning the establishment of heightened prudential standards for risk-based capital, leverage, liquidity, contingent capital, resolution plans and credit exposure reports, concentration limits, enhanced public disclosures, and overall risk management for nonbank financial companies and large, interconnected bank holding companies supervised by the Board of Governors;
(J)
identify systemically important financial market utilities and payment, clearing, and settlement activities (as that term is defined in subchapter IV);
(K)
make recommendations to primary financial regulatory agencies to apply new or heightened standards and safeguards for financial activities or practices that could create or increase risks of significant liquidity, credit, or other problems spreading among bank holding companies, nonbank financial companies, and United States financial markets;
(L)
review and, as appropriate, may submit comments to the Commission and any standard-setting body with respect to an existing or proposed accounting principle, standard, or procedure;
(M)
provide a forum for—
(i)
discussion and analysis of emerging market developments and financial regulatory issues; and
(ii)
resolution of jurisdictional disputes among the members of the Council; and
(N)
annually report to and testify before Congress on—
(i)
the activities of the Council;
(ii)
significant financial market and regulatory developments, including insurance and accounting regulations and standards, along with an assessment of those developments on the stability of the financial system;
(iii)
potential emerging threats to the financial stability of the United States;
(vi)
recommendations—
(I)
to enhance the integrity, efficiency, competitiveness, and stability of United States financial markets;
(II)
to promote market discipline; and
(III)
to maintain investor confidence.