Replies to post #322883 on Fannie Mae-No Politics (FNMA)

[955]

MUST SEE! Rep. Ann Wagner (R-MO) exposes INTERNATIONAL counterparts of FSOC that seek to take over American bank and non-bank businesses by designating them as GLOBAL SIFI's. FSOC board simply goes along with it without objection, international counterparts allowed to make decisions for us.

FSOC (Financial Stability Oversight Council) testifies before House Financial Services Committee 8 Dec 2015

Exchange between Rep. Ann Wagner, (R-MO) and Roy Woodall, FSOC Independent Member with Insurance Expertise

Rep. Ann Wagner, (R-MO): "Due to the non-transparent nature in which FSOC conducts it's business, it can cause one to question whether our US regulators are really fighting on behalf of the interest of the United States of America when they are at the international negotiating table or whether they are simply letting international counterparts make important decisions for us. Mr. Woodall, in your decent to Prudential's SIFI designation, you made the point that the international and domestic designation processes are not entirely separate and distinct. Specifically sir, specifically, you noted that an un-named US national authority agreed to the international designation of Prudential before the company's hearing and finanical determination before FSOC. Would you please be specific and elaborate, who is that, national authority"

Roy Woodall, FSOC Independent Member with Insurance Expertise: "At FSB, there are 3 national authorities, TREASURY, the FED (Federal Reserve) and the SEC."

Wagner: "And who is the un-named authority that agreed to the international designation of Prudential before the company's hearing and final determination before FSOC?"

Woodall: "Well that's hard to say. As far as I know, actually before the hearing in Prudential, the Treasury notified Prudential that they had been designated as a global SIFI.

Wagner: "Before their hearing, before their final determination before FSOC, TREASURY, if I understand your testimony, let them know that they had been designated.

Woodall: "That's my understanding."

Wagner: "This seems questionable, as you've stated the US representatives on the FSB, the TREASURY, the FED, the SEC, they're not insurance regulators as has been pointed out by so many of my colleges, phi beta kapas from Kentucky. Meanwhile, FSB membership is dominated by banking regulators who know little about the insurance industry. Does it concern you that those regulators are the only US representatives in the room when decisions are made about insurance issues sir?

Woodall: Yes, I think that the CFTC and the FDIC should be in the room at the meetings of the FSB and I think that insurance regulators should be in the room if they're making decisions that are going to affect the businesses that they regulate.

Wagner: Given the sequencing of FSB designations and then later FSOC SIFI designations, how can US based insurers be confident that their designations are the result of a domestic decision rather than an international process that isn't accountable to US policy makers like us?"

Woodall: Well, they are technically separate things, but they're not.

Wagner: They're not. They're not accountable to US policy makers. Can you describe what attention or consideration FSOC gives to designations by the FSB?

Woodall: No direct, it's not mentioned in the discussions because we try to base it on what Dodd-Frank says.

Wagner: Do you believe that your colleges would feel comfortable disagreeing with the decision or challenging the decision made by the FED, the TREASURY and the SEC at the Financial Stabilities Board?

Woodall: Well of course they're just still 3 votes on the board. The Financial Stability Board is not an organization that this Congress created by a treaty or any other statutory thing, it's kind of an ad-hoc group.

Wagner: Absolutely it's an ad-hoc group. Do you believe that your colleges would vote to de-designate any of the insurance companies if such companies were still designated by the FSB?

Woodall: I would hope so.

Wagner: One last question, since everyone has said that they rely on FSOC's staff for info, is there a memo or analysis that is distributed to members before a vote? Who writes this, is it Treasury, is it the Fed which allow the committee to review any of these documents?

Woodall: It goes through a committee called the non-banks designation committee and it goes to the secretariat which is within TREASURY and you're looking at 600-700 pages sometimes in these memos, they're more than memo's. It's quite extensive, with a lot of good work done by top economists at the Fed and other agencies.

Wagner: Thank you sir.

Hensarling: The time for the lady has expired.

BEGINNING AT 2:37:20
http://www.c-span.org/video/?401650-1/hearing-financial-stability-oversight-council-operations

TREASON by any other name. FSB (Financial Stability Board) is an "AD-HOC GROUP" -Roy Woodall, FSOC Independent Member with Insurance Expertise.

ad hoc
?ad 'häk/
adjective & adverb
formed, arranged, or done for a particular purpose only.
"an ad hoc committee"


Thank you Dollars1 for bring attention to Rep. Wagner's remarks!

2:37:20 into hearing, Rep Wagner's remarks

http://www.c-span.org/video/?401650-1/hearing-financial-stability-oversight-council-operations

[Dollars1]

Thank you for the transcript, 955! I agree, it is a must read, and watch the clip also if possible.

go to 2:37:20 into the hearing

http://www.c-span.org/video/?401650-1/hearing-financial-stability-oversight-council-operations