<p><span>Thank you, Chairman Brown, Ranking Member Toomey, and Members of the Committee. I am pleased to speak with you today about the Financial Stability Oversight Council’s (Council) 2021 annual report. The report is a collaborative effort of the Council member agencies. It is a vehicle for providing Congress and the public with the Council’s collective assessments of potential risks to U.S. financial stability. Today, I will highlight a few topics in the report and provide an update on the Council’s activities since the report’s publication.</span></p>
U.S. Treasury Secretary Janet Yellen said on Monday the U.S. financial system was functioning in an orderly manner despite the current stock market sell-off, and valuations of some assets remain high.
Financial Stability Oversight Council Statement on Nonbank Financial Intermediation February 4, 2022 marketswired.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from marketswired.com Daily Mail and Mail on Sunday newspapers.
<p><span>Nonbank financial institutions (NBFIs) are an essential source of capital in financial markets and provide vital funding to the U.S. economy. In 2016, the Financial Stability Oversight Council (Council) issued a statement describing risks to financial stability that may arise from certain asset management products and activities.</span><span> The market dislocations of March 2020 demonstrated that some NBFIs remain vulnerable to acute financial stresses and may amplify or transmit stress in the financial system. In 2021, the Council made it a priority to evaluate and address the risks to U.S. financial stability posed by three types of NBFIs: hedge funds, open-end funds, and money market funds (MMFs). At its meeting on February 4, 2022, the Council received updates from member agency staff on progress over the past year regarding these three types of NBFIs through working groups and Council member agency rulemakin