November 17, 2016

Brown Urges Trump to Hold Wall Street, Hedge Funds Accountable

WASHINGTON, D.C. — U.S. Sen. Sherrod Brown (D-OH) – ranking member of the U.S. Senate Committee on Banking, Housing, and Urban Affairs – issued the following statement after today’s meeting of the Financial Stability Oversight Council (FSOC) on potential risks to the financial system posed by large hedge funds. During his campaign, President-elect Donald Trump campaigned against Wall Street and hedge funds, criticizing them for “getting away with murder.”

"The Council’s oversight of potential risks posed by massive hedge funds is another example of the work that remains to protect everyday Americans from once again bailing out ‘too-big-to fail’ financial institutions,” Brown said. “The next Treasury secretary should understand that any actions to undermine that vital oversight mission could threaten our ability to address risky Wall Street practices, leaving taxpayers and our economy vulnerable to another crisis. If President-elect Trump is serious about stopping Wall Street and hedge funds from 'getting away with murder,’ he’ll make sure the Council can keep doing its job.”

The Dodd-Frank Wall Street Reform and Consumer Protection Act created FSOC, which the Treasury secretary chairs, to monitor the risks posed by nonbank financial companies, and to address these risks through enhanced rules and supervision. FSOC is authorized to designate nonbank companies as systemically important financial institutions and recommend increased regulation for activities that threaten financial stability.