And it will operate a new resolution regime for failing financial firms. The monitoring efforts of the Financial Stability Oversight Council in the United States are already well under way. Staff members from the member agencies have established working groups with responsibility for specific sectors or aspects of the financial system and are making regular presentations to the council.
This work will also be reflected in the council’s required annual report to the Congress on financial stability, which is expected to be released in the summer. Of course, the identification of threats to financial stability must be followed by appropriate remedies. The powers of the council itself are relatively limited in this regard, at least under most circumstances.