Representative Carolyn Maloney, ranking member on the Capital Markets and Government Sponsored Enterprises subcommittee, sent a letter to Treasury Secretary Jack Lew last week regarding the FSOC’s systemically important designation process. While Senator Maloney expressed general support for the FSOC, she suggested four changes to increase transparency and reduce uncertainty:
· The FSOC should provide notice to companies that have been advanced by the FSOC to Stage 2 in the designation process.
· The FSOC should engage companies at Stage 2 instead of Stage 3 to resolve potential misconceptions that may arise through the analysis of publicly available information;
· Upon advancing a company to Stage 3, the FSOC should provide a list of issues that are necessary to review prior to a systemically important designation;
· Upon the request of a company, the FSOC should hold a hearing prior to applying a systemically important designation.