Overview
- The council approved changes outlined in Bessent’s letter and annual report to review and scale back “undue burdens” seen as restraining credit and innovation.
- New interagency groups will target resilience in Treasury and related funding markets, household finances, artificial intelligence use and oversight, and cyber crisis preparedness.
- Regulators have begun easing requirements, including recalibrated leverage ratios, simpler capital rules for smaller banks, and a narrowed supervisory use of “reputational risk.”
- FSOC says it will keep tracking specific vulnerabilities, citing commercial real estate, hedge‑fund leverage in Treasury trades, nonbank mortgage lenders, and payment stablecoins.
- Democrats and consumer advocates, including Sen. Elizabeth Warren, warn the overhaul weakens safeguards as recent bankruptcies and other stress signals emerge.