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H.R. 3682 · House bill · 119th Congress
This 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.
This Act may be cited as the “Financial Stability Oversight Council Improvement Act of 2025”.
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 material financial distress at the company, or the nature, scope, size, scale, concentration, interconnectedness, or mix of the activities of 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)”.