About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

GAO-24-107295 1 (2024-05-24)

handle is hein.gao/gaoqdw0001 and id is 1 raw text is: U.S. GOVERNMENT ACCOUNTABILITY OFFICE 441 G St. N.W. Comptroller General Washington, DC 20548 of the United States May 24, 2024 The Honorable Jerome H. Powell Chair Board of Governors of the Federal Reserve System 20th St. & Constitution Ave., NW Washington, D.C. 20551 Priority Open Recommendations: Board of Governors of the Federal Reserve System Dear Chair Powell: The purpose of this letter is to provide an update on the overall status of the Board of Governors of the Federal Reserve System's (Federal Reserve) implementation of GAO's recommendations and to call your continued personal attention to open recommendations that should be given high priority.' In November 2023, we reported that, on a government-wide basis, 75 percent of our recommendations made 4 years ago were implemented.2 The Federal Reserve's recommendation implementation rate was 75 percent. As of May 2024, the Federal Reserve had 13 open recommendations. Fully implementing these open recommendations could significantly improve the Federal Reserve's efforts to oversee risks to consumers and the safety and soundness of the U.S. banking system. In our August 2023 letter, we noted that four of the open recommendations were priority recommendations. Since that time, the Federal Reserve has implemented two of our four open priority recommendations. Specifically, in March 2024, the Federal Reserve finalized a process to communicate information about the uncertainty surrounding stress test capital ratio estimates to the Board. Also in March 2024, the Federal Reserve implemented a process for the Board and senior staff to articulate tolerance levels for key risks and for the degree of uncertainty in projected capital ratios.3 By taking these two actions, the Federal Reserve will enhance its ability to effectively evaluate and manage its model risk and ensure that the Board is informed of significant model risks when making decisions based on stress test results. We are not adding any new priority recommendations this year. We ask for your continued attention to the remaining two priority recommendations, which are related to blockchain 1Priority recommendations are those that GAO believes warrant priority attention from heads of key departments or agencies. They are highlighted because, upon implementation, they may significantly improve government operations-for example, by realizing large dollar savings; eliminating mismanagement, fraud, and abuse; or making progress toward addressing a high-risk or duplication issue. 2GAO, Performance and Accountability Report: Fiscal Year 2023, GAO-24-900483 (Washington, D.C.: Nov. 15, 2023). 3GAO, Federal Reserve: Additional Actions Could Help Ensure the Achievement of Stress Test Goals, GAO-1 7-48 (Washington, D.C.: Nov. 15, 2016). GAO-24-107295 Federal Reserve Priority Recommendations Page 1

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most