so, it would require this body to act. >> so, that recommendation was made to fsoc, and fsoc has not acted on that recommendation? >> well, we just got the recommendation very recently. we haven't had a meeting since we got the report. i'm not aware of administrative authority that exists to do that, but i'd be happy to check and get back to you. >> so you weren't consulted and you've just received the report, is that what you're saying? >> the report came to us. i forget, a week or ten days ago. and it was done by the regulators independently. >> but you didn't have any prior knowledge -- >> no. >> -- that that was going to be the recommendation? >> i don't believe so. i'm happy to check. >> and so, what will be the process moving forward? when will fsoc take up discussions on that particular recommendation? >> i will have to get back to you, congressman. we haven't had an fsoc meeting since that report came in, and i'm not in a position to respond until we've had a chance to look at it and discuss it. >> so, will fsoc report its findings to congress? >> we're happy to work with thi

so it would require this body to act. >> so that recommendation was made to fsoc, and fsoc has not actedthat recommendation? >> we just got the recommendation very recently. we haven't had a meeting since we got the report. i'm not aware of administrative authority that exists to do that, but i would be happy to check and get back to you. >> so you weren't consulted and just received the report. is that what you're saying? >> the report came to us, i forget if it was a week or ten days ago, and it was done by the regulators independently. >> but you didn't have any prior -- >> no. >> knowledge that that would be the recommendation? >> i don't believe so. i'm happy to check. >> what would be the process in moving forward? when will fsoc take up discussions on that particular recommendation? >> i will have to get back to you, congressman. we haven't had an fsoc meeting since that report came in, and i'm not in a position to respond until we've had a chance to look at it and discuss it. >> so fsoc report its findings to congress. >> we're happy to work with this committee going forward, as

because fsoc, which was created by dodd/frank act is something that i believe is an absolute necessity as a framework so that we can deal with the complex multisector interconnected financial risks and our financial markets. and i encourage fsoc to further embrace greater transparency in its designation process and in how designated entities would be regulated. because it is key, i think, i strongly believe, that we should emphasize and focus on working with the designated firms so that they can derisk. if we work with them, they no longer become risky, it's much letter to eliminate systemic risk as opposed to supervising it is. that not correct? >> congressman, i think that the process that ge went through demonstrates that it's a two-way street. ge for its own business reasons changed its focus to going back to being an industrial as opposed to financial firm. it came and made the showing it was no longer engaged in the activities that caused it to be designated and we quickly responded by dedesignating and we have not -- for the debate about designation, you would think that hundred

sifi designation by fsoc is largely built around connectedness. look at the terms of designation. a lot of connectedness. as a central clearing for the counter-derivatives, the idea is we have to mutualize the losses or we'll have a chain reaction of failure and, certainly, bilateral exposure limits. these were all parts of dodd-frank. now, one can argue that these reforms are desirable as preventive measures generally apart from the experience in 2008, connectedness was not the problem in 2008. so dodd-frank also did something else which was to legislate with respect to contagion. as i said at the outset, three measures were deployed during the cry is sis to stop the -- crisis to stop the runs on banks and nonbanks, lenders of last resort and capital injections in the banks. funder of last resort. the fed was created in 1913 to stop financial panics, the latest of which was in 1907. interestingly, that panic of 1907 started the nonbank sector at the nickel boxer trust -- nickel boxer trust company. the fed discharged its responsibility through a variety of means, a lower penalty