WASHINGTON—Acting Comptroller of the Currency Michael J. Hsu today issued the following statement at the Financial Stability Oversight Council (FSOC) meeting:
Madam Secretary, we have seen a number of stresses and challenges in the financial system this past year. I would like to thank you for your strong and committed leadership of the Council during this time. I would also like to commend the work of the Council’s working groups, including the Mortgage Servicing Task Force and the Hedge Fund Working Group, and also the Inter-Agency Working Group on Treasury Market Resilience, for their efforts identifying and monitoring emerging financial stability risks. I also extend my thanks to the Council staff and the staff of the other agencies for their work on the annual report and their efforts throughout the year to support the Council.
I support the issuance of the FSOC annual report and its recommendations. The report takes an appropriately broad view of financial stability risks, striking a balance between highlighting familiar risks like commercial real estate, with longer standing risks like cybersecurity and treasury market functioning, and emerging risks like artificial intelligence and third-party arrangements. I look forward to working with all stakeholders on addressing these recommendations to ensure the safety of the U.S. financial system.
Finally, I would like to acknowledge the important work the FSOC has undertaken this year to strengthen and improve the resilience of the financial system. This includes the updated guidance for nonbank designations and a new risk analysis framework, which are important steps toward a more durable, fair, and transparent process for the analysis of threats to the financial system. The process improvements the FSOC has made are important and portend substantive benefits in how we can address financial stability risks. I am looking forward to continuing to work with my FSOC colleagues to continue our productive and collaborative discussions to address current and emerging risks in the financial system in 2024.