On March 28, the House Oversight and Investigations Subcommittee held a hearing that examined the processes used by the Financial Stability Oversight Council to designate nonbank financial companies under Section 113 of Dodd-Frank. As discussed in a memorandum issued prior to the hearing by the House Financial Services Committee, the hearing was also scheduled to go over the findings of a recent Financial Services Committee Staff Report, including concerns over whether FSOC has acted inconsistently in exercising its power to designate certain nonbank companies as “too big to fail.” During the hearing, the subcommittee heard from the following witnesses:

In a press release available on the Financial Services Committee webpage following the hearing, the majority members of the subcommittee identified the “Key Takeaways from the Hearing,” as: (i) “[t]he Dodd-Frank Act created an arbitrary threshold that the FSOC uses to designate systemically important financial institutions (SIFIs); (ii) “FSOC’s process for designating SIFIs in essence codifies "too big to fail" and poses a threat to the U.S. economy”; (iii) “[t]he Financial CHOICE Act, the Republican plan to replace Dodd-Frank and promote economic growth” would “end[] ‘too big to fail’ and bank bailouts.”