Department of the Treasury – Budget in Brief 

Financial Stability Oversight Council 

Program Summary by Budget Activity 

Dollars in Thousands 

 FY 2017 FY 2018 FY 2019 FY 2018 TO FY 2019 

Budget Activity Actual Estimated Estimated $ Change % Change 

FSOC $5,655 $6,892 $6,892 0 0.00% 

FDIC $5,126 $4,162 $4,162 0 0.00% 

Total Cost of Operations $10,781 $11,054 $11,054 0 0.00% 

 

FTE 17 18 18 0 0.00% 

Summary 

The Financial Stability Oversight Council 

(Council) is chaired by the Secretary of the 

Treasury and consists of 10 voting members 

and five nonvoting members who serve in an 

advisory capacity. The Council brings 

together the expertise of the federal financial 

regulators, an insurance expert appointed by 

the President, and state regulators. 

The Council’s three statutory purposes are to: 

1. 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; 

2. 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 

3. respond to emerging threats to the stability 

of the U.S. financial system. 

Over the last year, the Council continued to 

identify and monitor potential risks to U.S. 

financial stability; fulfilled its statutory 

requirements, including transmission of its 

seventh annual report to Congress; and served 

as a forum for discussion and coordination 

among member agencies. 

The Council continues to evaluate its nonbank 

financial company determinations and 

financial market utility designations. In 

FY 2017, the Council rescinded one nonbank 

financial company determination. 

Over the next year, the Council will continue 

to monitor the financial system for emerging 

risks and facilitate interagency cooperation to 

identify and analyze potential emerging 

threats. The Council will also continue to 

facilitate information sharing and interagency 

coordination with respect to various regulatory 

initiatives. 

By law, the Council is required to convene no 

less than quarterly, but the Council has 

convened on a more frequent basis to share 

information on key financial developments, 

coordinate regulatory implementation, and 

monitor progress on recommendations from 

the Council’s annual reports. In FY 2017, the 

Council convened 7 times. The Council will 

remain focused on identifying near-term 

threats and addressing structural vulnerabilities 

in the financial system. Transparency into 

Council work has routinely been provided 

through an annual report to Congress, periodic 

Congressional testimony on Council activities 

and emerging threats to financial stability, and 

regular communications to the public about 

Council activities and decisions. 
Department of the Treasury – Budget in Brief 

FSOC supports Treasury’s Strategic Plan for 

FY 2018-2022 as follows: 

 Goal 1: Boost U.S. Economic Growth 

 Objective 1.2: Strong Economic 

Fundamentals 

FSOC FY 2019 Budget Highlights 

Explanation of Budget Activities 

Financial Stability Oversight Council 

($6,892,000 from Assessments) 

The Council has a statutory duty to facilitate 

information sharing and coordination among 

member agencies. The Council will continue 

to monitor the financial system for emerging 

risks and facilitate interagency cooperation to 

identify and analyze emerging threats. The 

Council is not an office or bureau of the 

Department of the Treasury. However, by 

law, the Council’s expenses (and, indirectly, 

Federal Deposit Insurance Corporation (FDIC) 

reimbursements) are considered expenses of 

the Office of Financial Research, an office 

within the Department of the Treasury. 

FDIC Reimbursement ($4,162,000 from 

Assessments) 

By law, the Council’s expenses also include 

reimbursement of certain reasonable 

implementation expenses incurred by the 

FDIC in implementing Orderly Liquidation 

Authority. The FDIC must periodically 

submit requests for reimbursement to the 

Chairperson of the Council, who shall arrange 

for prompt reimbursement to the FDIC. FDIC 

expenses are for rule writing and resolution 

planning. 

Legislative Proposals 

The Budget proposes to impose appropriate 

Congressional oversight of these functions by 

subjecting Council and Office of Financial 

Research activities to the normal 

appropriations process.

Description of Performance 

There are no measures specified for managing 

Council performance at this time. Information 

on the Council is provided on 

www.treasury.gov, www.fsoc.gov, and 

member agency websites to provide 

transparency and accountability. 

Financial Stability Oversight Council FTE Amount

FY 2018 Estimated 18 $11,054

Changes to Base:

Total FY 2019 Base 18 $11,054

Program Changes:

Program Decreases: 0 ($77)

Administrative Cost Savings 0 ($77)

Program Increases: 0 $77

Pay Annualization 0 $77

Subtotal Program Changes 0 0

Total FY 2019 Estimated 18 11,054

Dollars in Thousands