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Commentary by Steven Lofchie

Eight of ten voting members of the Financial Stability Oversight Council ("FSOC") testified at a House Financial Services Committee oversight hearing on FSOC's agenda, operations and structure. In opening remarks, Representative Jeb Hensarling (R-TX) observed that FSOC has earned "bipartisan condemnation" through measures such as (i) its designation of non-bank financial institutions as "systemically important financial institutions" ("SIFIs") and (ii) its annual report, that was intended to identify emerging threats to financial stability, but "omit[ted] any references to specific government

The Senate Banking Committee held a hearing entitled "Measuring the Systemic Importance of U.S. Bank Holding Companies." The discussion centered on the regulatory framework and $50 billion threshold for the designation of a bank holding company as a systemically important financial institution ("SIFI"). The majority of witnesses advocated an increase in the $50 billion threshold, since they agreed that regulatory relief is warranted for smaller banks that do not pose a systemic risk. C lick here to view a summary by the Delta Strategy Group .

The House Judiciary Subcommittee on Regulatory Reform, Commercial and Antitrust Law held a hearing on "H.R. 2947, the "Financial Institution Bankruptcy Act of 2015." The bill, which is sponsored by Representative Dave Trott (R-MI) would, among other things, create a new Subchapter V of Chapter 11 of the Bankruptcy Code to facilitate the liquidation, reorganization or recapitalization of a "covered financial corporation." Additionally, the bill would suspend customer early termination rights for qualified contracts. The following witnesses testified: Mr. Donald S. Bernstein Esq., Partner, Davis

The Senate Committee on Banking, Housing and Urban Affairs held a hearing focusing on the role of the Financial Stability Board ("FSB") in the U.S. regulatory framework. The following witnesses testified: The Honorable Dirk Kempthorne, President and CEO, American Council of Life Insurers (view testimony); Mr. Eugene Scalia, Partner, Gibson, Dunn, Crutcher (view testimony); Mr. Paul Schott Stevens, President and CEO, Investment Company Institute (view testimony); The Honorable Peter Wallison, Arthur F. Burns Fellow in Financial Policy Studies American Enterprise Institute (view testimony); and