The U.S. Government Accountability Office (GAO) released a study that found the financial regulatory structure in the U.S. is complex and inefficient, with responsibilities fragmented among multiple agencies with overlapping authorities. According to the report, Congress should consider whether changes to the financial regulatory structure are needed to reduce or better manage these inefficiencies.
Furthermore, the report suggests Congress should consider whether legislative changes are needed to align the Financial Stability Oversight Council’s authorities with its mission to respond to systemic risks.
The GAO also recommends that the Office of Financial Research (OFR) and the Federal Reserve jointly articulate individual and common goals for their systemic risk monitoring activities and engage in collaborative practices to support those goals. Additionally, the OFR and Federal Reserve should regularly and fully incorporate their monitoring tools, assessments or results of monitoring activities into Systemic Risk Committee deliberations.