Rep. Scott Garrett, R-N.J., chairman of the Financial Services Subcommittee on Capital Markets and Government-Sponsored Enterprises, wants the Financial Stability Oversight Council to be subject to the same transparency and accounting as other government councils.

“Over the last two years, it has become increasingly apparent that the Financial Stability Oversight Council, created by the Dodd-Frank Act, is in serious need of reform,” said Garrett upon introducing the legislation.  “The council meets in secret, refuses to disclose substantive transcripts, and blocks any requests by other regulators or Members of Congress for a more open and transparent process. 

“Last week, I specifically requested that the Department of Treasury allow me to attend the most recent FSOC meeting on March 27, 2014.  Treasury said no. “This follows on public reports of FSOC barring other financial regulators, whose agency principals are members, from attending and participating in these meetings.  This is completely unacceptable.”

Garrett’s bill would subject the FSOC to the government in the Sunshine Act; subject the FSOC to the Federal Advisory Committee Act; require that any vote taken by the principal of a commission or board represented must first be taken by that commission or board and the principal must then in turn vote that same decision at the council; and sllow for Members of Congress on the Congressional oversight committees of FSOC to be able to attend all FSOC meetings.

“The financial regulators, specifically the Federal Reserve—under the guise of FSOC and through its own actions—are in the process of fundamentally altering significant aspects of the way capital and credit are allocated in this country.  These are tremendous changes that will carry a lasting impact on the economic vibrancy of our nation for generations.  It is imperative these changes are not carried out in secret or behind closed doors,” Garrett said.