Financial Stability Oversight Council Improvement Act of 2021
The bill requires the Financial Stability Oversight Council, prior to determining that a U.S. nonbank financial company shall be supervised by the Federal Reserve Board and therefore subject to certain prudential standards, to first determine that certain alternative actions would not mitigate the threat the company may pose to U.S. financial stability.
To amend the Financial Stability Act of 2010 to require the Financial 
 Stability Oversight Council to consider alternative approaches before 
 determining that a U.S. nonbank financial company shall be supervised 
by the Board of Governors of the Federal Reserve System, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Financial Stability Oversight 
Council Improvement Act of 2021''.

SEC. 2. FINANCIAL STABILITY OVERSIGHT COUNCIL.

    Section 113 of the Financial Stability Act of 2010 (12 U.S.C. 5323) 
is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``The Council'' 
                and inserting ``Subject to paragraph (3), the 
                Council''; and
                    (B) by adding at the end the following:
            ``(3) Initial determination.--The Council may not vote on a 
        proposed determination with respect to a U.S. nonbank financial 
        company under paragraph (1) unless the Council first 
        determines, in consultation with the company and the primary 
        financial regulatory agency with respect to the company, that a 
        different action by the Council or the agency (including the 
        application of new or heightened standards and safeguards under 
        section 120), or by the company under a written plan that is 
        submitted promptly to the Council, is impracticable or 
        insufficient to mitigate the threat that the company could pose 
        to the financial stability of the United States.''; and
            (2) in subsection (f)(1), by striking ``subsection (e)'' 
        and inserting ``subsections (a)(3) and (e)''.
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Financial Stability Oversight Council Improvement Act of 2021
To amend the Financial Stability Act of 2010 to require the Financial Stability Oversight Council to consider alternative approaches before determining that a U.S. nonbank financial company shall be supervised by the Board of Governors of the Federal Reserve System, and for other purposes.
Financial Stability Oversight Council Improvement Act of 2021
Rep. Foster, Bill