Question

1. The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) established the Financial Stability Oversight Council. The purposes of the Council includes the following items except:

• To promote market discipline, by eliminating expectations on the part of shareholders, creditors, and counterparties of such companies that the Government will shield them from losses in the event of failure

• To respond to emerging threats to the stability of the United States financial system

• To identify those corporations who ongoing solvency is so critical to national security that they are classified as ‘too big to fail’

• 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 nonbank financial companies

Answer 1

The answer is To identify those corporations who ongoing solvency is so critical to national security that they are classified as ‘too big to fail’

the reason is the intention of the Financial Stability Oversight Council is to to eliminate expectations that any American financial firm is "too big to fail";