Senators Call for GAO Review of Fed’s Large Bank Guidance

A group of five senators — including Senate Banking Committee Chairman Mike Crapo (R-Idaho) — last week wrote to the Government Accountability Office calling for a review of Federal Reserve guidance on large bank supervision. The lawmakers asked GAO to determine if the guidance — which was issued by the Fed’s Large Institution Supervision Coordinating Committee — constitutes a rule for purposes of the Congressional Review Act.

The guidance outlines the Fed’s approach to large bank examination, and “imposes substantive requirements relating to capital, liquidity, corporate governance, and recovery and resolution planning,” the lawmakers noted. They added that “determining whether the LISCC guidance is a ‘rule’ under CRA is particularly important because the Federal Reserve has never revealed the criteria by which certain supervised institutions become subject to (or may avoid becoming subject to) the LISCC designation and associated requirements.”