US policymakers worried about “unelected European bureaucrats” at the helm of Financial Services Board!

Talk about deep double standards. For a country which has pushed its own unelected bureaucrats in all kinds of institutions, it is worried that FSB is doing the same.

Financial Services Commitee held a hearing on FSB. Pot the hearing, its press release said:

The Monetary Policy and Trade Subcommittee held a hearing to examine concerns with the work and transparency of the Financial Stability Board (FSB), an international organization largely controlled by European central bankers and financial regulators.

“It is very troubling that American regulators would relinquish any regulatory authority to unelected European bureaucrats who meet behind closed doors in a secretive fashion to determine the fate of U.S. financial institutions,” said Subcommittee Chairman Bill Huizenga (R-MI), “Because very little is known about the FSB, I have very serious concerns about its arbitrary decision-making process used to formulate policy that is devoid of any and all public participation.”

While the FSB’s decisions are not legally binding on its members, “the organization operates by moral suasion and peer pressure,” according to the FSB.  To ensure domestic implementation of its standards, the FSB has adopted measures to pressure jurisdictions to comply. 

Key Takeaways from the Hearing:

  • The Financial Stability Oversight Council (FSOC) has largely outsourced its authority to designate non-bank SIFIs to the FSB, with potentially harmful consequences for the competitiveness of the U.S. financial sector and the customers of U.S. financial institutions.
  • The FSB lacks basic transparency, accountability, and stakeholder participation.

I mean it is not even laughable. Most so called global institutions are manned and run similarly but the mighty US just does not care.

The quotes from witnesses suggest US has its own unique markets and one cannot apply standard policy. Really? What else has been happening all these years in other countries?

 

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