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FSOC’s De-designation of GE Capital as a Systemically Important Nonbank Proves Financial Reform is Working and its Critics Are Wrong

FOR IMMEDIATE RELEASE
Wednesday, June 29, 2016
Contact: Nick Jacobs, 202-618-6430 or njacobs@bettermarkets.com

Washington, D.C. – Dennis Kelleher, President and CEO of Better Markets, issued this statement on the rescission by the Financial Stability Oversight Council (FSOC) of GE Capital’s status as a systemically significant nonbank:

“FSOC’s actions today rescinding the designation of GE Capital as a systemically significant nonbank proves that the Dodd-Frank financial reform law is working as designed both for taxpayers and for the financial system.  Contrary to the nonstop, hysterical claims of industry and its political allies, FSOC has been thorough, deliberative, and fair throughout the designation process, focusing carefully on a rigorous data-driven analysis and clear systemic threats.  As a result, it has only designated four institutions in five years, which is actually too few, not too many.

“Proving it is only interested in designating and regulating actual threats, FSOC annually reviews every designation and has made clear it would rescind any designation that was no longer necessary.  Its actions today regarding GE Capital establish that beyond any doubt.  FSOC must now quickly analyze and designate the many other nonbank systemic threats to the jobs, homes and livelihoods of the American people.   De-designation is important, but designation is just as important and FSOC still has a lot of work to do.”

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Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies – including many in finance – to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.com.

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