Financial Stability Oversight Council

DEFINITION of 'Financial Stability Oversight Council'

A committee led by the U.S. Treasury Secretary that is charged with monitoring the financial system, including identifying potential threats to the country's financial stability. The Financial Stability Oversight Council is composed of 10 voting and five non-voting members. The voting members include Treasury officials, Federal Reserve Board members and insurance experts.

BREAKING DOWN 'Financial Stability Oversight Council'

In response to the financial crisis that began in 2007, the FSOC was formed as part of the Dodd-Frank Act, which was signed into law by President Barack Obama on July 21, 2010. The council aims to promote market discipline and bring greater efficiency and transparency to the financial services industry.

RELATED TERMS
  1. Thrift Institutions Advisory Council

    A council that advises the Federal Reserve board of governors ...
  2. Treasury Secretary

    The Secretary of the Treasury is a member of the Presidential ...
  3. Federal Advisory Council

    A group of 12 banking executives - one from each Federal Reserve ...
  4. Voting Shares

    Shares that give the stockholder the right to vote on matters ...
  5. Dodd-Frank Wall Street Reform and ...

    A compendium of federal regulations, primarily affecting financial ...
  6. American Council Of Life Insurance

    An association of American life insurance carriers based in Washington ...
Related Articles
  1. Forex

    European Euro

    A closer look at the European euro
  2. Economics

    The Federal Reserve: What Is The Fed?

    The Federal Reserve was created by the U.S. Congress in 1913. Before that, the U.S. lacked any formal organization for studying and implementing monetary policy. Consequently markets were often ...
  3. Credit & Loans

    Credit Crisis: Government Response

    By Brian PerryThe credit crisis has represented the gravest threat to the global financial system since the 1930s. Fortunately, policymakers have been proactive in their efforts to mitigate the ...
  4. Economics

    How Automatic Stabilizers Work

    Many economists claim that automatic stabilizers only work in the short term and question their effect on government spending. In truth, automatic stabilizers do not always have enough impact ...
  5. Economics

    Top 4 Central Banks Dominating the World Economy

    Central banks play an integral role in market economies by maintaining the stability and credibility of national currencies used in those economies.
  6. Economics

    What's the 1913 Federal Reserve Act?

    The 1913 Federal Reserve Act was a pivotal congressional act that helped establish the Federal Reserve System as it exists today. It is one of the United States financial system’s most influential ...
  7. Options & Futures

    20 Investments: Treasuries

    What Is It? Also known as "government securities", treasuries are a debt obligation of a national government. Because they are backed by the credit and taxing power of a country, they are regarded ...
  8. Professionals

    Common Stock Benefits

    NASAA Series 65: Section 9 Common Stock Benefits. In this section voting rights and types of voting systems.
  9. Economics

    A Brief History of U.S. Banking Regulation

    From the establishment of the First Bank of the United States to Dodd-Frank, American banking regulation has followed the path of a swinging pendulum.
  10. Economics

    What is the International Monetary Fund?

    The International Monetary Fund fosters global monetary cooperation and sustainable economic growth.
RELATED FAQS
  1. What are the major laws (acts) regulating financial institutions that were created ...

    Read about the major federal responses to the financial crisis of 2008, such as the Dodd-Frank Wall Street Reform Act and ... Read Answer >>
  2. If I own a stock in a company, do I get a say in the company's operations?

    You don't get a direct say in a company's day-to-day operations, but, depending on whether you own voting or non-voting stock, ... Read Answer >>
  3. What is the Dodd-Frank Act? How does it affect me?

    The Dodd-Frank Wall Street Reform and Consumer Protection Act is a massive piece of financial reform legislation passed by ... Read Answer >>
  4. How did the financial crisis affect the banking sector?

    Learn how the financial crisis impacted the U.S. and global banking sectors both immediately and with far reaching long-term ... Read Answer >>
  5. What is the structure of the U.S. Federal Reserve Bank?

    Wonder how the U.S. Federal Bank began and how it works today? Learn how this complex system is structured and how it works ... Read Answer >>
  6. How do externalities affect equilibrium and create market failure?

    Learn about the responsibilities of the International Monetary Fund and its functions regarding the international monetary ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center