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Minutes of the Financial Stability Oversight Council
Held February 13, 2014
PRESENT:
Jack Lew, Secretary of the Treasury and Chairperson of the Financial Stability Oversight
Council (Council)
Janet Yellen, Chair, Board of Governors of the Federal Reserve System (Federal Reserve)
Martin J. Gruenberg, Chairperson, Federal Deposit Insurance Corporation (FDIC)
Mary Jo White, Chair, Securities and Exchange Commission (SEC)
Mark P. Wetjen, Acting Chairman, Commodity Futures Trading Commission (CFTC)
Richard Cordray, Director, Consumer Financial Protection Bureau (CFPB)
Melvin Watt, Director, Federal Housing Finance Agency (FHFA)
Debbie Matz, Chairman, National Credit Union Administration (NCUA)
Thomas J. Curry, Comptroller of the Currency, Office of the Comptroller of the Currency (OCC)
Roy Woodall, Independent Member with Insurance Expertise
Richard Berner, Director, Office of Financial Research, Department of the Treasury (non-voting
member)
Michael McRaith, Director, Federal Insurance Office, Department of the Treasury (non-voting
member)
John P. Ducrest, Commissioner, Louisiana Office of Financial Institutions (non-voting member)
John Huff, Director, Missouri Department of Insurance, Financial Institutions, and Professional
Registration (non-voting member)
David Massey, Deputy Securities Administrator, North Carolina Department of the Secretary of
State, Securities Division (non-voting member)
GUESTS:
Department of the Treasury
Christopher J. Meade, General Counsel
Amias Gerety, Deputy Assistant Secretary for FSOC
Patrick Pinschmidt, Executive Director of the Council
Board of Governors of the Federal Reserve System
Daniel K. Tarullo, Governor
Nellie Liang, Director, Office of Financial Stability Policy and Research
Federal Deposit Insurance Corporation
Jason Cave, Special Advisor to the Chairman for Supervisory Matters
Securities and Exchange Commission
Jennifer B. McHugh, Senior Advisor to the Chair
Commodity Futures Trading Commission
Scott Reinhart, Co-Chief of Staff and Co-Chief Operating Officer

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Consumer Financial Protection Bureau
Steven Antonakes, Deputy Director
Federal Housing Finance Agency
Mario Ugoletti, Special Advisor to the Director
National Credit Union Administration
John Worth, Chief Economist
Office of the Comptroller of the Currency
John Lyons, Senior Deputy Comptroller and Chief National Bank Examiner
Office of the Independent Member with Insurance Expertise
Chris Ledoux, Senior Advisor
Federal Reserve Bank of New York
William Dudley, President and Chief Executive Officer
Office of Financial Research
Patricia Mosser, Deputy Director for Research and Analysis
Federal Insurance Office
John Nolan, Deputy Director (Financial Stability)
Louisiana Office of Financial Institutions
James Cooper, Senior Vice President, Conference of State Bank Supervisors
Missouri Department of Insurance, Financial Institutions, and Professional Registration
Mark Sagat, Counsel and Manager, Financial Policy and Legislation, National Association of
Insurance Commissioners
North Carolina Department of the Secretary of the State, Securities Division
Joseph Brady, General Counsel, North American Securities Administrators Association
PRESENTERS:
Nonbank Financial Company Designations
• Felton Booker, Senior Advisor, Banking Supervision & Regulation, Federal Reserve
• John Nolan, Deputy Director (Financial Stability), Federal Insurance Office
• Todd Cohen, Policy Advisor, Treasury
• Diane Fraser, Senior Policy Advisor, Office of the Independent Member with
Insurance Expertise

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2014 Annual Report
• João Santos, Vice President and Function Head, Federal Reserve Bank of New York
• Trent Reasons, Senior Policy Advisor, Treasury
Markets Update
• Matthew Rutherford, Assistant Secretary for Financial Markets, Treasury
• Nellie Liang, Director, Office of Financial Stability Policy and Research, Federal
Reserve
Update on International Association of Insurance Supervisors (IAIS) Processes
• Michael McRaith, Director, Federal Insurance Office
Executive Session
The Chairperson called the executive session of the meeting of the Council to order at
approximately 1:10 P.M. (EST). The Council convened by teleconference due to a weatherrelated closure of federal offices in the Washington, D.C. area. He began by welcoming Chair
Janet Yellen of the Federal Reserve, who was attending her first Council meeting as Chair of the
Federal Reserve. He then outlined the meeting agenda, which had been previously distributed to
the members together with copies of the resolution and other materials. The agenda for the
meeting included the following subjects: (1) nonbank financial company designations; (2) the
Council’s 2014 annual report; (3) a markets update; (4) an update on the work of the IAIS; and
(5) consideration of, and a vote on, a resolution approving the minutes of the Council’s meeting
on January 9, 2014.
1. Nonbank Financial Company Designations
The Chairperson introduced the first agenda item, an update on the ongoing analysis of a
nonbank financial company that the Council previously had advanced to stage 3 of the
designations process. Felton Booker, Senior Advisor at the Federal Reserve, provided an update.
Diane Fraser, Senior Policy Advisor in the Office of the Independent Member; John Nolan,
Senior Advisor in the Federal Insurance Office at Treasury; and Todd Cohen, Policy Advisor at
Treasury, were available to answer questions. The members of the Council then had a
discussion.
2. 2014 Annual Report
The Chairperson then turned to the next agenda item, regarding plans for the Council’s 2014
annual report to Congress, and asked João Santos, Vice President and Function Head at the
Federal Reserve Bank of New York, and Trent Reasons, Senior Policy Advisor at Treasury, to
give a presentation. Mr. Santos and Mr. Reasons provided an overview of the current progress
on the development of the report, and potential timing for its release. They also presented on
items that could be identified in the report as potential emerging threats to U.S. financial
stability, including revisiting some of the items that were addressed in the Council’s 2013 annual
report in light of subsequent market developments. After the presentation, members of the
Council asked questions and discussed, among other things, issues related to interest rate risk,
data gaps related to short-term funding markets, data standards, and monitoring evolving
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practices in the financial system. The Council also provided guidance to staff on potential
emerging threats to include in subsequent drafts of the annual report.
3. Markets Update
The Chairperson turned to the next agenda item, a discussion of the current market environment,
including the U.S. fiscal situation, municipal markets, and emerging market developments. The
Chairperson began the discussion by noting that Congress had recently passed a suspension of
the U.S. debt limit until March 16, 2015. He then called on Matt Rutherford, Assistant Secretary
for Financial Markets at Treasury, to give a presentation. Mr. Rutherford presented on recent
developments in municipal markets and emerging markets. Nellie Liang, Director, Office of
Financial Stability Policy and Research at the Federal Reserve, then presented on the level of
exposure of financial institutions to emerging markets. After the presentation, members of the
Council asked questions and had a discussion, including regarding the importance of Council
members sharing information regarding any potential risks to U.S. financial stability that could
arise from municipal markets or emerging markets.
4. IAIS Update
The Chairperson then introduced the next agenda item, an update on the work of the IAIS. The
Chairperson noted that the IAIS has been engaged in significant standard-setting work. He
introduced Michael McRaith, Director of the Federal Insurance Office, to discuss the progress of
the IAIS’s efforts and its work to come. Mr. McRaith described the IAIS’s ongoing efforts to
develop an assessment methodology to identify global systemically important insurers (G-SIIs)
and the work the IAIS has undertaken to identify G-SIIs.
5. Resolution Approving the Minutes of the Meeting held on January 9, 2014
“BE IT RESOLVED, by the Financial Stability Oversight Council (the “Council”), that the
minutes attached hereto of the meeting held on January 9, 2014 of the Council are hereby
approved.”
The Chairperson asked for a motion to approve the resolution, which was made and seconded.
The Council approved the resolution by unanimous vote.
The Chairperson adjourned the meeting at approximately 2:57 P.M. (EST).

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