GAO: Fed’s Large Bank Guidance Constitutes a Rule

The Government Accountability Office this week found that the two of the Federal Reserve’s guidance documents on large bank supervision—which were issued in 2012 and 2014 by the Fed’s Large Institution Supervision Coordinating Committee—are considered rules for the purposes of the Congressional Review Act.

The GAO conducted its review at the urging of Sens. David Perdue (R- Ga.), Kevin Cramer (R-N.D.) and Thom Tillis (R-N.C.). With this finding, Congress—should it choose to take the issue up—would be able to overturn the guidance within 60 legislative days using the Congressional Review Act.

The GAO also concluded that the Fed’s 2011 guidance on model risk management also constitutes a rule under the CRA. The guidance was flagged in a separate letter by Sen. Tillis.