READOUT: Financial Stability Oversight Council Meeting on December 6, 2024

WASHINGTON – Today, U.S. Secretary of the Treasury Janet L. Yellen convened a meeting of the Financial Stability Oversight Council (Council) in executive and open sessions at the U.S. Department of the Treasury (Treasury).During the executive session, the Council heard an update from Treasury and Federal Reserve Bank of New York staff on recent hedge fund market developments, including the recent growth of overall leverage across the industry. Staff also described regulators’ efforts to improve counterparty credit risk management practices at supervised institutions that provide financing to hedge funds, and presented on potential policy responses to mitigate identified risks.The Council also received a presentation from staff of Treasury, the National Association of Insurance Commissioners, and the Board of Governors of the Federal Reserve System on developments in the life insurance sector, including affiliations with offshore reinsurers and private equity firms, and regulators’ ongoing efforts to enhance the sector’s resilience.In addition, the Council received an update from member agency