Letter to the Hon. Steven Mnuchin, Secretary of the Treasury - Support of President Trump's Executive Order Setting Core Principles for Regulating the United States Financial System

Letter

We write in strong support of President Trump's Executive Order setting core principles for regulating the United States financial system. As part of your review and report on the existing laws, regulations, guidance and government policies "that inhibit Federal regulation of the United States financial system in a manner consistent with the Core Principles," we hope that you will review the policies and procedures underlying the Financial Stability Oversight Council's (FSOC) determination that a nonbank financial company shall be subject to supervision by the Board of Governors of the Federal Reserve System and subject to enhanced prudential standards.

The FSOC's process for designating non-bank systemically important financial institutions lacks transparency and accountability, insufficiently tracks data, and does not have a consistent methodology for determinations. Consequently, the designation process has created substantial new regulatory costs while putting taxpayers on the hook for any future bailout to these firms. It frustrates the ability of American companies to be competitive with foreign firms, while thwarting economic growth.

Please know you have our strong support for using all the tools available as Secretary of Treasury to end "Too Big To Fail' and ensure that hard-working Americans are not responsible for any new bailouts.