A GAO report released today found that two powerful regulatory organizations created by the Dodd-Frank Act lack an effective level of accountability and transparency. The GAO report found the new organizations—the Financial Stability Oversight Council (FSOC) and Office of Financial Research (OFR)—face challenges in achieving their missions.
Key FSOC missions—to identify risks and respond to emerging threats to financial stability—are inherently challenging, in part, because risks to financial stability often do not arise in similar manners. In addition, collaboration among FSOC members can also be challenging, as most represent independent agencies that retained existing authorities.
The OFR faces challenges of trying to establish and build a world-class research organization while meeting shorter-term goals and responsibilities.
The GAO report concluded the FSOC and OFR could be enhanced by providing greater accountability and transparency and made ten recommendations to aid the organizations.
The report is the result of an extensive, nine-month audit by the GAO at the request of the Financial Services Committee Chairman Spencer Bachus and Oversight and Investigations Subcommittee Chairman Randy Neugebauer.
Read the full report.