Financial Stability Oversight Council
Section 111 of the Act creates a new Financial Stability Oversight Council composed of voting
and non-voting members whose task it will be to mitigate systemic risk and the maintenance
of system-wide financial stability. The stated purpose of the Council is: “to identify risks
to the financial stability of the United States that could arise from the material financial
distress or failure, or ongoing activities of large, interconnected bank holding companies or
that could arise outside the financial services marketplace”.26 The council will focus on the
interconnection of highly leveraged firms and will have the authority to force companies to
divest holdings if their structure poses a grave threat to US financial stability.