The FSOC said it would not be using its authority to designate shadow banks for Federal Reserve supervision, said it would eliminate work related to climate-related financial risk, and cut its budget which will hamper all its workstreams going forward.

In a historic dereliction of duty, the FSOC voted on several changes that will abandon its statutory mandate to protect the economy, banking system, and American people from financial risk. First, it said that it would not be using its designation authority to oversee shadow banks’ activities. Second, it eliminated work and committees to oversee climate-related financial risk, a known threat to banks, the economy, and all Americans. Third, it cut its operating budget, which will further prevent it from fulfilling its legislatively mandated mission.