WASHINGTON (9/22/14)--The Financial Stability Oversight Council (FSOC) "still lacks a comprehensive, systematic approach to identify emerging threats to financial stability," according to a Government Accountability Office (GAO) report released last week.
The report was done as a follow-up to recommendations given by the GAO to the council in September 2012.
The FSOC was created by the Dodd-Frank Act to identify and address threats to financial stability. The council consists of 10 voting and five nonvoting members. The 10 voting members include nine federal regulators and an independent insurance expert.
In September 2012, the GAO gave the council nine recommendations involving three areas: emerging threats and risks identification; transparency and accountability; and collaboration and coordination.
The recent report states that:
According to its report, the GAO "maintains that action is needed as its past work has shown that the lack of clear roles and coordination can lead to duplication, confusion and regulatory gaps."
Information for the GAO's study was obtained from June through September from staff and documents relating to the GAO's 2012 recommendations.
Use the resource link to access the complete report.