WASHINGTON–Treasury Secretary Steven Mnuchin told Congress yesterday that his primary focus is currently on passage of financial regulatory relief legislation, increasing the U.S. debt limit, and cybersecurity.
Providing testimony on the Financial Stability Oversight Council, of which he is chair, Mnuchin told the House Financial Services Committee he is concerned the financial system’s “heavy and increasing reliance” on technology also means increased risk from a cybersecurity breach that could "disrupt the financial sector and potentially impact U.S. financial stability.”
Mnuchin noted that the FSOC annual report calls for creation of a private sector council of senior financial services executives to “collaborate with regulators in order to mitigate cybersecurity threats.”
Meanwhile, Mnuchin urged the Senate and House to continue to move forward with financial regulatory reform legislation, including the Financial CHOICE Act, which has already passed the House and which has the support of the credit union trade groups.
That bill brings the CFPB and NCUA under the congressional appropriations process (which the trade groups oppose) and places a number of restrictions on the CFPB.
In terms of the federal debt limit, Mnuchin said Congress needs “to act as soon as possible to protect the full faith and credit of the United States by increasing the statutory debt limit.”
In addition:
* Mnuchin said the indefinite conservatorship of Fannie Mae and Freddie Mac is “neither a sustainable nor a lasting solution.”
* Mnuchin said he is not “overly concerned” with the tumult in the stock market and that the fundamentals of the economy remain quite strong.