U.S. Secretary of the Treasury Janet L. Yellen convened a meeting of the Financial Stability Oversight Council (Council) on December 6, 2024, at the U.S. Department of the Treasury. The meeting was held in both executive and open sessions.
In the executive session, updates were provided by staff from the Treasury and Federal Reserve Bank of New York regarding hedge fund market developments, specifically noting an increase in overall leverage across the industry. The staff also discussed efforts to enhance counterparty credit risk management practices at institutions that finance hedge funds and proposed potential policy responses to mitigate identified risks.
The Council also received insights from Treasury staff, along with representatives from the National Association of Insurance Commissioners and the Board of Governors of the Federal Reserve System, on developments within the life insurance sector. This included discussions on affiliations with offshore reinsurers and private equity firms, as well as ongoing regulatory efforts to strengthen sector resilience.
An update was presented by member agency staff and a senior official from Ginnie Mae on vulnerabilities in the nonbank mortgage servicing sector since the Council’s report issued in May 2024. The update included descriptions of state and federal agencies’ efforts to implement recommendations from this report.
During the open session, there was a presentation on the Council’s 2024 annual report, which was unanimously approved by vote. Additionally, minutes from its previous meeting held on October 18, 2024, were approved.
Members present at this meeting either in person or virtually included Janet L. Yellen; Jerome H. Powell; Michael J. Hsu; Rohit Chopra; Gary Gensler; Martin Gruenberg; Rostin Behnam; Sandra L. Thompson; Todd M. Harper; Thomas Workman; James Martin (non-voting); Steven Seitz (non-voting); Elizabeth K. Dwyer (non-voting); Adrienne A. Harris (non-voting); and Melanie Lubin (non-voting).
Further details about the Council’s activities and recent approvals can be found at http://www.fsoc.gov.
