Bessent calls for overhaul of regulator tasked with spotting systemic financial risks | Metals Mine

  • Bessent calls for overhaul of regulator tasked with spotting systemic financial risks

    From cbsnews.com

    Treasury Secretary Scott Bessent wants to overhaul a federal regulatory group, launched following the 2008 housing bust, that is tasked with safeguarding the U.S. financial system. The 15-member panel, known as the Financial Stability Oversight Council (FSOC), was established by the 2010 Dodd-Frank Act to help spot and defuse systemic financial risks. The council is chaired by the Secretary of the Treasury and includes the leaders from other financial regulatory agencies, such as the director of the Consumer Financial Protection Bureau and the head of the Board of Governors of the Federal Reserve System. In a letter ... (full story)

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Vancarbon
Dec 12, 2025 4:04am — Edited
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So , a committee that was set up after the biggest financial crisis ever known is now being overhauled ( read : obsolete) for this :

In a letter released Thursday, Bessent called for looser FSOC regulations, saying that "too often in the past, efforts to safeguard the financial system have resulted in burdensome and often duplicative regulations."

The Treasury Secretary wants to remove many of the safeguards for looser regulation .

At a time when we have :-

A huge AI bubble ( potentially)

A Fiscal Deficit of $37 Trillion dollars which is unprecedented and only just serviceable

An asset market bubble

Commodity bubble

Yield curve control

Long Bonds screaming “ INFLATION AHEAD “

A Fed mandate in tatters

……and the greatest President the US has ever known ( his words, not mine)

Have I missed anything ?

Really ! What could go wrong

I’m all for stripping away the layers of bureaucracy -but hey, this is Kamikaze .
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wizzytech100
Dec 12, 2025 5:02am
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Quoting mattbbaby
{quote} What, you don’t like a cherry on top of your fudge sundae?
I want to make sure my cherry stays on top for infinity
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Schultz
Dec 12, 2025 6:24am
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Quoting Vancarbon
So , a committee that was set up after the biggest financial crisis ever known is now being overhauled ..Have I missed anything ?
I don't know anything about the FSOC except that it "was established by the 2010 Dodd-Frank Act to help spot and defuse systemic financial risks."

So, after the 2008 crisis which may have been caused, according to some, by the low Fed interest rates (and of course some other weird policies).

With the new Fed Chair, the Fed Rate may be again lowered unnecessarily (being the operative word) to a level which may otherwise spark the interest of the FSOC.

Maybe something missing is the desire to remove such an impediment for any future Fed decision. Bessent could be playing the game.
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mattbbaby
Dec 12, 2025 4:54am
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Quoting Vancarbon
So , a committee that was set up after the biggest financial crisis ever known is now being overhauled ( read : obsolete) for this : In a letter released Thursday, Bessent called for looser FSOC regulations, saying that "too often in the past, efforts to safeguard the financial system have resulted in burdensome and often duplicative regulations." The Security to the Treasury wants to remove many of the safeguards for looser regulation . At a time when we have :- A huge AI bubble ( potentially) A Fiscal Deficit of $37 Trillion dollars...
What, you don’t like a cherry on top of your fudge sundae?
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Vancarbon
Dec 12, 2025 5:12am
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Quoting mattbbaby
{quote} What, you don’t like a cherry on top of your fudge sundae?
Sometimes , yeah . We’re always guaranteed plenty of fudge with this administration .
Reply
Shiham
Dec 12, 2025 12:14am
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not to work against financial bust rather than tariff bust
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Trader#9305
Dec 12, 2025 12:57am
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Snatch of the century is coming. Question - why ?
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