U.S. regulators to unveil blueprint to tackle financial climate risks

WASHINGTON, Oct 21 (Reuters) – A top U.S. regulatory panel is scheduled on Thursday to unveil recommendations for ensuring the financial system can withstand risks created by climate change, a development that could ultimately lead to new rules and stricter oversight for Wall Street.

The report by the Financial Stability Oversight Council (FSOC), which comprises the heads of the top financial agencies and is chaired by Treasury Secretary Janet Yellen, is part of President Joe Biden’s plan to aggressively tackle climate change and will be released ahead of his trip to Glasgow, Scotland, for a United Nations climate summit.

While the report is unlikely to mandate specific rule changes, it is expected to provide a roadmap for integrating climate risk management into the everyday fabric of the financial regulatory system.

With Biden’s climate agenda stalling in a divided Congress, the report will also send a signal to the rest of the world that the United States is serious about tackling systemic climate risks.

“This is the first time that all of the banking and financial regulators will come out in one document and talk about what they can do on climate change,” said Todd Phillips, director of financial regulation at the Center for American Progress, a liberal think-tank.

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Source: Reuters