WASHINGTON, D.C. – Today, Senators Thom Tillis (R-NC), Mike Crapo (R-ID), David Perdue (R-GA), Mike Rounds (R-SD), and Kevin Cramer (R-ND) sent a letter to the U.S. Government Accountability Office (GAO) Comptroller General Gene Dodaro to seek clarification on if guidance letters issued by the Federal Reserve imposing the framework for consolidated supervision of large financial institutions constitutes a “rule” for the purposes of the Congressional Review Act (CRA).
 
“The Federal Reserve has issued several guidance letters that impose a framework for consolidated supervision of large financial institutions, particularly those in Large Institution Supervision Coordinating Committee (LISCC). This framework imposes substantive requirements relating to capital, liquidity, corporate governance, and recovery and resolution planning,” wrote the senators.
 
“Determining whether the LISCC Guidance is a “rule” under the CRA is particularly important because the Federal Reserve has never revealed the criteria by which certain supervised institutions become subject to (or may avoid becoming subject to) the LISCC designation and associated requirements,” the senators continued. “For these reasons, we respectfully request that you evaluate whether or not the guidance is a “rule” under the CRA.”

“For too long, Federal regulatory agencies have used rules masquerading as guidance to improperly regulate financial institutions,” said Senator Tillis. “All government agencies should abide by the Administrative Procedure Act to remain transparent and accountable to Congress.” 

The Large Institution Supervision Coordinating Committee (LISCC) is the Board of Governors of the Federal Reserve System’s enhanced regulatory and supervisory framework for large and complex financial institutions.
 
Read the letter HERE.

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