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Minutes of the Financial Stability Oversight Council

Held March 21, 2016

PRESENT: 

Jacob J. Lew, Secretary of the Treasury and Chairperson of the Financial Stability Oversight 

Council (Council)

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)

Timothy Massad, 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) 

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

Roy Woodall, Independent Member with Insurance Expertise 

Richard Berner, Director, Office of Financial Research (OFR), Department of the Treasury 

(nonvoting 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) 

Adam Hamm, Commissioner, North Dakota Insurance Department (non-voting member) 

Melanie Lubin, Securities Commissioner, Maryland Office of the Attorney General, Securities 

Division (non-voting member)

GUESTS: 

Department of the Treasury (Treasury)

Sarah Bloom Raskin, Deputy Secretary of the Treasury 

Antonio Weiss, Counselor to the Secretary

Patrick Pinschmidt, Deputy Assistant Secretary and Executive Director of the Council

Eric Froman, Deputy Assistant General Counsel for the Council 

Board of Governors of the Federal Reserve System

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

Federal Deposit Insurance Corporation

Jason Cave, Special Advisor to the Chairman for Supervisory Matters

Securities and Exchange Commission

Nathaniel Stankard, Deputy Chief of Staff

Commodity Futures Trading Commission

Lawranne Stewart, Special Counsel
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Consumer Financial Protection Bureau

Ron Borzekowski, Assistant Director for Research

Federal Housing Finance Agency

Sandra Thompson, Deputy Director, Division of Housing Mission and Goals

Comptroller of the Currency

Jonathan Fink, Special Counsel to the Comptroller

National Credit Union Administration

Ralph Monaco, Chief Economist

Office of the Independent Member with Insurance Expertise

Charles Klingman, Senior Advisor

Federal Reserve Bank of New York

William Dudley, President and Chief Executive Officer

Office of Financial Research

Stacey Schreft, Deputy Director for Research and Analysis

Federal Insurance Office

Steven Seitz, Deputy Director (Financial Stability)

Louisiana Office of Financial Institutions

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

North Dakota Insurance Department

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

Insurance Commissioners

Maryland Office of the Attorney General, Securities Division

Christopher Staley, Counsel, North American Securities Administrators Association

PRESENTERS:

Update on Review of Asset Management Products and Activities

• Patrick Pinschmidt, Deputy Assistant Secretary and Executive Director of the Council, 

Treasury (available for questions)

• Charles Cohen, Deputy Director of Analysis, Treasury (available for questions)

• Stephen Ledbetter, Director of Policy, Treasury (available for questions)

• Lyndsay Huot, Deputy Director of Policy, Treasury (available for questions)

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

Reserve (available for questions)

Executive Session
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The Chairperson called the executive session of the meeting of the Council to order at 

approximately 4:02 P.M. (EST). The Council convened by teleconference to discuss the 

Council’s review of potential risks to financial stability arising from asset management products 

and activities.

The Chairperson led the discussion. He explained that the purpose of this discussion was to 

discuss a draft public statement on asset management to be issued by the Council. He noted that 

work was ongoing to develop the draft document, which was subject to continuing review and 

revision. He also noted that the analysis had led to a focus on potential financial stability risks 

arising from two areas: liquidity and redemption risk and leverage. Council members then asked 

questions and had a discussion about potential liquidity and redemption risks, including with 

relation to certain ongoing rulemakings by the SEC. Council members then asked questions and 

had a discussion about potential leverage risks, including the importance of sharing data among 

regulators to evaluate potential risks. Council members also discussed potential next steps with 

respect to both liquidity and redemption risk and leverage. The Chairperson noted that the draft 

statement also addressed potential risks to financial stability arising from securities lending, 

operational risks of service provider concentrations, and resolvability and transition planning. 

The Chairperson concluded by noting that the Council’s work in this area is complementary to 

the SEC’s ongoing rulemaking initiatives regarding asset management, with the Council focused 

on potential risks to financial stability. He noted that the Council’s efforts require coordination 

among relevant regulators and expressed appreciation for the agencies’ work.

The Chairperson adjourned the meeting at approximately 4:57 P.M. (EST).