The Financial Stability Oversight Council (FSOC) is charged, most notably, with deciding when action should be taken against financial institutions under the provisions of the Kanjorski Amendment. The Federal Reserve would need to propose action but seven out of the 10 FSOC members would need to concur.
This body takes over from the President’s Working Group on Capital Markets which was active under Treasury Secretary Hank Paulson but which, over a longer period, was not able to monitor or control the build-up of financial risks.
This is a committee of 10 regulators at the federal level that was created by the Dodd-Frank financial reform legislation of 2010.
The Treasury Secretary is chair; the other members are the chair of the Federal Reserve Board, the head of the newly created consumer protection agency for financial products (housed within the Fed but fully independent), the Comptroller of the Currency, the head of the SEC (Securities and Exchange Commission), the head of the CFTC (Commodity Futures Trading Commission), the head of the FDIC (Federal Deposit Insurance Corporation), the head of the Federal Housing Finance Agency, the chair of the National Credit Union Administration board, and a person appointed by the president to represent insurance regulators (as there is no such existing federal position).