“During the executive session, the council discussed recent market developments, including the possibility of the United Kingdom's separation from the European Union” a summary of the meeting issued by the Treasury Department read.
 
The meeting was scheduled under the Financial Stability Oversight Council, which is made up of the chiefs of the financial regulators and was created to assess potential hazards in order to avoid another crisis on the magnitude of the 2007-09 economic meltdown.
 
Apart from Treasury Secretary Jack Lew, other members at the meeting included Commodity Futures Trading Commission Chair Timothy Massad, who has worked with his European counterparts lately to align derivatives regulation across borders, and Securities and Exchange Commission Chair Mary Jo White.
 
Federal Reserve Chair Janet Yellen is part of the council, but did not attend the closed meeting, which also covered proposed rules for insurance companies and a reevaluation of its determination that a nonbank financial company is “too big to fail”. Yellen gave on Tuesday a regularly scheduled testimony to the U.S. Senate Banking Committee and told Congress that immediate risks, like the potential fallout from Britain's June 23 vote on whether to leave the European Union, could darken the U.S. economic outlook.
 
The council held an open meeting, as well, to discuss its annual report on the U.S. financial system.
 
During another meeting which was open, the Financial Stability Oversight Council discussed its annual report on the U.S. financial system which also found that “concerns related the upcoming United Kingdom referendum on exit from the EU, uncertainty in securing an agreement on Greece and ongoing geopolitical tension between Russia and Ukraine will likely weigh on sentiment in the coming months”, adding that immigration from “conflict-torn countries has also threatened European cohesion”.