Money managers critical of Financial Stability Oversight Council efforts to designate some of their firms as systemically important got bipartisan support from several senators Thursday.
In a letter to Jacob Lew, FSOC chairman and secretary of the Treasury; Sens. Mark Kirk, R-Ill.; Thomas Carper, D-Del.; Patrick Toomey, R-Pa.; Claire McCaskill, D-Mo.; and Jerry Moran, R-Kan.; expressed concern with a September report by the FSOC's Office of Financial Research, which they said “mischaracterizes the asset management industry” and includes “misused or faulty information.”
The FSOC was created by the Dodd-Frank Wall Street Reform and Consumer Protection Act to identify and monitor excessive risks to the U.S. financial system and come up with possible regulatory actions, including designation of systemically important financial institutions warranting enhanced supervision.