On July 18th, the Financial Stability Oversight Council published its report to Congress regarding the feasibility, benefits, costs, and structure of a contingent capital requirement for nonbank financial companies supervised by the Federal Reserve Board and for large, interconnected bank holding companies. The Council recommends that contingent capital instruments remain an area for continued private sector innovation, and encourages the Federal Reserve and other financial regulators to continue to study the advantages and disadvantages of including contingent capital and bail-in instruments in their regulatory capital frameworks.