1

Minutes of the Financial Stability Oversight Council

Held March 27, 2014

PRESENT: 

Sarah Bloom Raskin, Deputy Secretary of the Treasury (acting pursuant to delegated authority)

Janet Yellen, Chair, Board of Governors of the Federal Reserve System (Federal Reserve)

Martin J. Gruenberg, Chairperson, Federal Deposit Insurance Corporation (FDIC) 

Mary Jo White, Chair, Securities and Exchange Commission (SEC) 

Mark P. Wetjen, Acting Chairman, Commodity Futures Trading Commission (CFTC) 

Richard Cordray, Director, Consumer Financial Protection Bureau (CFPB)

Melvin Watt, Director, Federal Housing Finance Agency (FHFA)

Thomas J. Curry, Comptroller of the Currency, Office of the Comptroller of the Currency (OCC)

Roy Woodall, Independent Member with Insurance Expertise

Richard Berner, Director, Office of Financial Research, Department of the Treasury (non-voting 

member)

Michael McRaith, Director, Federal Insurance Office, Department of the Treasury (non-voting 

member)

John P. Ducrest, Commissioner, Louisiana Office of Financial Institutions (non-voting member)

John Huff, Director, Missouri Department of Insurance, Financial Institutions, and Professional 

Registration (non-voting member)

David Massey, Deputy Securities Administrator, North Carolina Department of the Secretary of 

State, Securities Division (non-voting member) 

GUESTS: 

Department of the Treasury 

Mary J. Miller, Under Secretary for Domestic Finance

Christopher J. Meade, General Counsel

Amias Gerety, Deputy Assistant Secretary for FSOC

Patrick Pinschmidt, Executive Director of the Financial Stability Oversight Council

Board of Governors of the Federal Reserve System 

Daniel K. Tarullo, Governor

Federal Deposit Insurance Corporation 

Jason Cave, Special Advisor to the Chairman for Supervisory Matters

Securities and Exchange Commission 

Lona Nallengara, Chief of Staff

Commodity Futures Trading Commission

Joseph Cisewski, Co-Chief Operating Officer and Co-Chief of Staff
2

Consumer Financial Protection Bureau

Steven Antonakes, Deputy Director

Federal Housing Finance Agency 

Mario Ugoletti, Special Advisor to the Director

National Credit Union Administration 

John Worth, Chief Economist

Office of the Comptroller of the Currency 

John Lyons, Senior Deputy Comptroller and Chief National Bank Examiner

Office of the Independent Member with Insurance Expertise

Chris Ledoux, Senior Advisor

Federal Reserve Bank of New York

William Dudley, President and Chief Executive Officer (by telephone)

Office of Financial Research

Patricia Mosser, Deputy Director for Research and Analysis

Federal Insurance Office

John Nolan, Deputy Director (Financial Stability)

Louisiana Office of Financial Institutions

Michael Stevens, Senior Executive Vice President, Conference of State Bank Supervisors

Missouri Department of Insurance, Financial Institutions, and Professional Registration 

Mark Sagat, Counsel and Manager, Financial Policy and Legislation, National Association of 

Insurance Commissioners

North Carolina Department of the Secretary of the State, Securities Division

Joseph Brady, General Counsel, North American Securities Administrators Association
3

PRESENTERS:

2014 Annual Report 

• João Santos, Vice President and Function Head, Federal Reserve Bank of New York

• Trent Reasons, Senior Policy Advisor, Treasury

Nonbank Financial Company Designations Stage 3 Analysis Update

• Felton Booker, Senior Advisor, Banking Supervision & Regulation, Federal Reserve

• John Nolan, Deputy Director (Financial Stability), Federal Insurance Office

• Todd Cohen, Policy Advisor, Treasury

• Diane Fraser, Senior Policy Advisor, Office of the Independent Member with 

Insurance Expertise

Nonbank Financial Company Designations Stage 2 Analysis Update

• John Nolan, Deputy Director (Financial Stability), Federal Insurance Office

• Randall Dodd, Senior Policy Advisor, Federal Insurance Office

• Todd Cohen, Policy Advisor, Treasury

• Scott Alvarez, General Counsel, Federal Reserve

Markets Update Relating to Developments in Ukraine

• David S. Cohen, Under Secretary for Terrorism and Financial Intelligence, Treasury

• Nathan Sheets, Counselor to the Secretary, Treasury

Executive Session 

The Deputy Secretary called the executive session of the meeting of the Financial Stability 

Oversight Council (Council) to order at approximately 1:05 P.M. (EDT). She outlined the 

meeting agenda, which had been previously distributed to the members together with copies of 

the resolution and other materials. The agenda for the meeting included the following subjects: 

(1) the Council’s 2014 annual report; (2) an update on the nonbank financial company 

designations stage 3 analysis; (3) an update on the nonbank financial company designations stage 

2 analysis; (4) a markets update relating to developments in Ukraine; and (5) consideration of, 

and a vote on, a resolution approving the minutes of the Council’s meeting on February 13, 

2014. 

1. 2014 Annual Report

The Deputy Secretary introduced the first agenda item, regarding the current draft of the 

Council’s 2014 annual report to Congress. She stated that over the next few weeks it will be 

important for the Council and staff to engage and reach final agreement on this year’s annual 

report. She then asked João Santos, Vice President and Function Head at the Federal Reserve 

Bank of New York, and Trent Reasons, Senior Policy Advisor at Treasury, to give a 

presentation. Mr. Santos and Mr. Reasons stated that the 2014 annual report was currently in the 

review stage. They discussed and asked for guidance on the proposed emerging threats to U.S. 

financial stability and proposed recommendations to be included in the report. After the 

presentation, members of the Council asked questions and had a discussion.
4

2. Nonbank Financial Company Designations Stage 3 Analysis Update

The Deputy Secretary then introduced the next agenda item, an update on the ongoing analysis of 

a nonbank financial company that the Council previously had advanced to stage 3 of the 

designations process. Felton Booker, Senior Advisor, Banking Supervision & Regulation, at the 

Federal Reserve, provided an update. Diane Fraser, Senior Policy Advisor in the Office of the 

Independent Member with Insurance Expertise; John Nolan, Deputy Director for Financial 

Stability in the Federal Insurance Office; and Todd Cohen, Policy Advisor at Treasury, were 

available to answer questions. The members of the Council asked questions and had a 

discussion. 

3. Nonbank Financial Company Designations Stage 2 Analysis Update

The Deputy Secretary then introduced the next agenda item, an update on the ongoing analysis of 

a nonbank financial company that is currently in stage 2 of the designations process. John 

Nolan, Deputy Director for Financial Stability in the Federal Insurance Office, provided an 

update on the status of the ongoing analysis of a nonbank financial company in stage 2. Randall 

Dodd, Senior Policy Advisor in the Federal Insurance Office; Todd Cohen, Policy Advisor at 

Treasury; and Scott Alvarez, General Counsel of the Federal Reserve, were available to answer 

questions. The members of the Council asked questions and had a discussion. 

4. Markets Update Relating to Developments in Ukraine

The Deputy Secretary turned to the next agenda item, a discussion of the current market 

environment and recent developments related to Ukraine. She introduced David Cohen, 

Treasury’s Undersecretary for Terrorism and Financial Intelligence, and Nathan Sheets, 

Counselor to the Secretary of the Treasury. Mr. Cohen began the discussion by noting that 

President Obama has issued three Executive Orders this month that provide a set of flexible tools 

to use as a response to Russia’s activities in Ukraine. To date, Treasury’s Office of Foreign 

Asset Control has designated 31 individuals and one Russian bank. Mr. Cohen also stated that 

Treasury is mindful of the impact these actions could have on the global economy, and that the 

United States would continue to respond to Russia’s actions in a proportional way. Mr. Sheets 

then spoke about Russia’s linkages to the global economy. After the presentation, the members 

of the Council asked questions and had a discussion.

5. Other Business

Before moving on to consider approving minutes, the Deputy Secretary noted that the Council 

will soon announce that it will host a conference on the asset management industry and its 

activities. The conference will allow senior staff of Council members to hear directly from

industry participants and other stakeholders, including academics and public interest groups, and 

will further inform the work of the Council. 

6. Resolution Approving the Minutes of the Meeting held on February 13, 2014
5

“BE IT RESOLVED, by the Financial Stability Oversight Council (the “Council”), that the 

minutes attached hereto of the meeting held on February 13, 2014 of the Council are hereby 

approved.” 

The Deputy Secretary asked for a motion to approve the resolution, which was made and 

seconded. The Council approved the resolution by unanimous vote.

The Deputy Secretary adjourned the meeting at approximately 2:25 P.M. (EDT).