Department of the Treasury – Budget in Brief

Financial Stability Oversight Council

Program Summary by Budget Activity

Dollars in Thousands

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:

1. to 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. to 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. to 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 

sixth 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FY 2016, the Council rescinded one nonbank 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 2016, the 

Council convened 10 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.

FY 2016 FY 2017 FY 2018

Budget Activity Actual Estimated Estimated $ Change % Change

Column1 Column3 Column32 Column4 Column5 Column6

FSOC $7,157 $8,156 $7,748 ($408) -5.00%

FDIC $6,571 $5,126 $4,499 ($627) -12.23%

Total Cost of Operations $13,728 $13,282 $12,247 ($1,035) -7.79%

FTE 22 23 21 (2) -8.70%

FY 2017 TO FY 2018
Department of the Treasury – Budget in Brief

FSOC FY 2018 Budget Highlights

To align with the Administration’s initiative to 

improve government efficiency and 

effectiveness, the FSOC is implementing a 

staffing streamlining effort to ensure 

appropriate levels for maximum efficiency.

Explanation of Budget Activities

Financial Stability Oversight Council

($7,748,000 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 ($4,499,000 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.

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 2017 Estimated 23 $13,282

Changes to Base:

Total FY 2018 Base 23 $13,282

Program Changes:

Program Decreases (2) ($1,035)

Personeel (2) ($222)

Non-Personeel ($186)

FDIC Reimbursement ($627)

Total FY 2018 Estimated 21 12,247

Dollars in Thousands