FIO/FSOC Update as of July 29, 2013

Below are recent activities on the FIO/FSOC front.

• The Financial Stability Oversight Council (FSOC) announced that they were designating AIG and General Electric Capital Corp as systemically important.
  • You can read the FSOC press release here.
  • You can read the AIG statement here.
  • To read our previous blog post on this topic, click here.
  
  
• The House of Representatives passed legislation requiring the FSOC to study how differences in the international implementation of Basel III capital rules related to derivatives will affect the U.S. financial system.  H.R. 1341, the Financial Competitiveness Act of 2013, passed the House by a vote of 353-24 and now awaits action in the Senate.
  • You can read the House Financial Services Committee press release on its passage here.
  • You can read the press release from the main sponsor of the legislation, Congressman Stephen Fincher (R-TN), here.
  
  
• The Ranking Member of the Senate Banking Committee, Mike Crapo (R-ID), wrote a letter asking the Government Accountability Office to study how the FSOC determines which companies should face additional oversight.  Specifically, Senator Crapo asked for information on government criteria as well as any communication with the affected companies.
  
  
• MetLife announced that the FSOC voted to advance the company to the final stage for designation as a systemically important financial institution (SIFI).
  • You can read the statement from MetLife here.