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Minutes of the Financial Stability Oversight Council

Held February 1, 2012

PRESENT: 

Timothy F. Geithner, Secretary of the Treasury and Chairperson of the Financial Stability 

Oversight Council 

Ben Bernanke, Chairman, Board of Governors of the Federal Reserve System (Federal Reserve)

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

Mary Schapiro, Chairman, Securities and Exchange Commission (SEC) 

Gary Gensler, Chairman, Commodity Futures Trading Commission (CFTC) 

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

Edward DeMarco, Acting Director, Federal Housing Finance Agency (FHFA)

Debbie Matz, Chairman, National Credit Union Administration (NCUA)

John Walsh, Acting Comptroller of the Currency, Office of the Comptroller of the Currency

(OCC) 

Roy Woodall, Independent Member with Insurance Expertise

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

member)

William Haraf, Commissioner, California Department of Financial Institutions (non-voting

member) 

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

Registration (non-voting member) (participating by telephone)

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

State, Securities Division (non-voting member) 

GUESTS: 

Department of the Treasury 

Neal S. Wolin, Deputy Secretary of the Treasury 

Mary J. Miller, Assistant Secretary for Financial Markets

Amias Gerety, Deputy Assistant Secretary for FSOC 

Christopher J. Meade, Principal Deputy General Counsel

Board of Governors of the Federal Reserve System 

Daniel K. Tarullo, Governor, Federal Reserve

Federal Deposit Insurance Corporation 

Jason Cave, Deputy Director for Monitoring, Office of Complex Financial Institutions 

Securities and Exchange Commission 

Jennifer McHugh, Senior Advisor to the Chairman

Commodity Futures Trading Commission

Dan Berkovitz, General Counsel
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Consumer Financial Protection Bureau

Raj Date, 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

Federal Insurance Office

John Nolan, Senior Policy Advisor

California Department of Financial Institutions 

Michael Stevens, Senior Vice President and Director of Regulatory Affairs, Conference of State 

Bank Supervisors 

Missouri Department of Insurance, Financial Institutions, and Professional Registration 

Mark Sagat, Counsel and Manager, Government Relations, National Association of Insurance 

Commissioners 

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

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

PRESENTERS:

Macro-environment Overview: Update on Europe

• Lael Brainard, Under Secretary for International Affairs, Treasury

• Nellie Liang, Director, Office of Financial Stability Policy and Research, Federal 

Reserve
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Money Market Funds Reform Update

• Eileen Rominger, Director, Division of Investment Management, SEC

• Robert Plaze, Associate Director for Regulation, Division of Investment Management, 

SEC

• Matthew Rutherford, Deputy Assistant Secretary for Federal Finance, Treasury

• Patrick McCabe, Senior Economist, Federal Reserve

Public Comments on Notice of Proposed Rulemaking and Proposed Guidance on Nonbank 

Financial Company Designations

• Lance Auer, Deputy Assistant Secretary, Financial Institutions, Treasury

Dodd-Frank Act Update and Update on 2012 Annual Report 

• Amias Gerety, Deputy Assistant Secretary for FSOC, Treasury

Executive Session 

The Chairperson called the executive session of the meeting of the Financial Stability Oversight 

Council (Council) to order at 1:00 P.M. (EST). 

The Chairperson began by welcoming Richard Cordray to the Council. He then 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) a macro-environment overview and update on Europe; (2) an update on money market funds

reform efforts; (3) public comments on the notice of proposed rulemaking and proposed 

guidance on nonbank financial company designations; (4) an update on the Dodd-Frank Act 

and the Council’s 2012 annual report; and (5) consideration of, and a vote on, a resolution 

approving the minutes from the Council’s meetings on December 5, 2011 and December 21,

2011.

1. Macro-environment Overview: Update on Europe

The Chairperson turned to the first agenda item and asked Lael Brainard, Under Secretary for 

International Affairs at the Treasury, and Nellie Liang, Director of the Office of Financial 

Stability Policy and Research at the Federal Reserve Board, to give a macro-environment 

overview and update on Europe. After the presentation, members of the Council asked questions 

and discussed related issues. 

2. Money Market Funds Reform Efforts

The Chairperson then raised the agenda item regarding the SEC’s money market funds reform 

efforts. He called on Eileen Rominger, Director of the Division of Investment Management at 

the SEC; Robert Plaze, Associate Director for Regulation in the Division of Investment 

Management at the SEC; Matthew Rutherford, the Deputy Assistant Secretary for Federal 

Finance at the Treasury; and Patrick McCabe, Senior Economist at the Federal Reserve, to give 

the presentation. The presentation included an update on reform efforts and the SEC’s plans to 

issue a notice of proposed rulemaking. The members of the Council asked questions about the 

presentation.
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3. Public Comments on Notice of Proposed Rulemaking and Proposed Guidance on 

Nonbank Financial Company Designations

The Chairperson turned to the next item on the agenda, which was the public comments received 

in reponse to the notice of proposed rulemaking and proposed guidance on nonbank financial 

company designations. He called on Lance Auer, Deputy Assistant Secretary for Financial 

Institutions at the Treasury, to give the presentation. Mr. Auer gave a presentation on the public 

comments, and explained that there were 41 comments submitted on the notice of proposed 

rulemaking and proposed guidance from a range of companies, trade associations, other groups, 

and individuals. After the presentation, the Council members asked questions and discussed 

related issues.

4. Dodd-Frank Act Update and Update on 2012 Annual Report

The Chairperson then turned to the item on the agenda regarding implementation of the DoddFrank Act. The members of the Council discussed the upcoming year for Dodd-Frank Act 

implementation. Then the Chairperson called on Amias Gerety, Deputy Assistant Secretary for 

FSOC at the Treasury, to give an update on the Council’s 2012 annual report. After the 

presentation, the Council members asked questions.

5. Resolution Approving the Minutes of the Meetings held on December 5, 2011 and 

December 21, 2011

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

minutes attached hereto of the December 5, 2011 and December 21, 2011 meetings of the 

Council are hereby approved.”

The Chairperson asked for a motion to approve the resolution, which was made. The Council 

then approved the resolution by unanimous vote.

The Chairperson asked for a motion to adjourn the meeting, which was made. The Council 

voted to adjourn. The Chairperson adjourned the meeting at approximately 3:13 P.M. (EST).