ABA Dodd-Frank Tracker

Fed Calculates Aggregate Liabilities

2017-06-30T10:45:00.000-04:00

The Federal Reserve announced that aggregate financial sector liabilities amounted to approximately $21.01 trillion, meaning that – under Section 622 of the Dodd-Frank Act, which prohibits the combination of financial companies if the resulting company’s liabilities account for more than 10% of the aggregate consolidated liabilities of all financial firms – financial companies cannot combine unless their aggregate liabilities amount to less than $2.1 trillion.

The limit applies to all insured depository institutions, bank and S&L holding companies, foreign banks and nonbanks subject to FSOC supervision. Liabilities are defined as the difference between risk-weighted assets – adjusted to reflect exposures deducted from regulatory capital – and total regulatory capital.

Read more.

Trump Orders Reviews of Dodd-Frank Liquidation Authority, SIFI Designation

2017-04-24T10:00:00.000-04:00

President Trump has ordered the Treasury Department to conduct reviews of the Dodd-Frank Act’s Orderly Liquidation Authority and its process for designating nonbanks as systemically important financial institutions.

The OLA memorandum calls for a review of whether OLA is consistent with the president’s “core principles” for regulating the financial system, whether employing OLA could cause losses to taxpayers, whether it leads to excessive risk-taking and whether a new chapter in the Bankruptcy Code would be a superior method of resolving a failing financial firm, among other topics.

The second memo calls for Treasury to review the Financial Stability Oversight Council’s processes for designating nonbank SIFIs and to pause any further designations of nonbanks pending completion of the review. Both reviews are to be completed within 180 days.

ABA EVP Wayne Abernathy said:

ABA has welcomed and embraced the administration’s thorough review of financial regulations. We appreciate the administration’s efforts to understand how financial regulations are working in practice and how to refine them to make them more supportive of economic growth. ABA and our member banks are actively participating in the process.

Read the OLA memo.
Read the SIFI designation memo.

Regulators Clear Living Wills for Regional, Card Banks

2017-03-27T10:20:00.000-04:00

The FDIC and Federal Reserve have announced that they had reviewed resolution plans submitted in December 2015 by 16 regional and credit card banks and that none were found “not credible” or inadequate to facilitate an orderly resolution under the Bankruptcy Code, the statutory standard under the Dodd-Frank Act.

So-called living wills submitted for fifteen of the banking firms – American Express, Ally Financial, BB&T, Capital One, Comerica, Discover, Fifth Third, Huntington, KeyCorp, M&T Bank, PNC, Regions, SunTrust, U.S. Bancorp and Zions Bancorporation – had no shortcomings, according to regulators. As a result, these institutions will be able to submit less information as part of the resolution plans due in December 2017. The agencies identified shortcomings in the plan submitted by Northern Trust Corporation that the company must address in its next filing.

Meanwhile, the agencies provided feedback to the U.S. affiliates of four overseas banking firms – Barclays, Credit Suisse, Deutsche Bank and UBS – to address vulnerabilities associated with governance, capital and liquidity. All four have “significantly restructur[ed]” their U.S. operations to comply with Dodd-Frank, the agencies said. The four firms will have until July 2018 to submit revised living wills.

The resolution plan process – which applies to U.S. bank holding companies with assets of more than $50 billion, nonbanks designated as systemically important by the Financial Stability Oversight Council and large foreign banks with U.S. operations – requires these large institutions to describe their strategy for a rapid and orderly wind-down in the event of stress. Planning requirements are tiered based on a firm’s level of complexity.

Read more.

Trump Orders Review of Dodd-Frank, Fiduciary Rule

2017-02-06T10:00:00.000-05:00

President Trump has issued orders to reevaluate several provisions of the Dodd-Frank Act and the Department of Labor’s controversial fiduciary rule. An executive order outlines seven core principles for regulation of the financial system: promoting independent consumer choices, preventing bailouts, fostering economic growth, promoting international competitiveness, advancing U.S. interests in international negotiations, tailoring regulations and ensuring regulatory accountability.

It directs the treasury secretary to meet with the heads of the member agencies of the Financial Stability Oversight Council to conduct a thorough review of how existing regulations and policies support or inhibit these core principles, with a report on the findings due to the president in 120 days.

A separate memorandum targets the fiduciary rule, which expanded the definition of “fiduciary” under the Employee Retirement Income Security Act and the Internal Revenue Code. The memo calls for the secretary of labor to review thoroughly the rule to examine its effect on Americans’ ability to access financial advice.

The rule is scheduled to take effect in April, but the acting secretary said DOL “will now consider its legal options to delay the applicability date as we comply with the president’s memorandum.” ABA has strongly advocated for changes to the fiduciary rule, as well as a longer implementation period to give banks of all sizes time to comply.

ABA President and CEO Rob Nichols welcomed Trump’s action to bring much-needed regulatory relief for banks, helping them to better serve their customers and communities. Nichols said:

We appreciate the administration’s support for pro-growth policies so banks can go even further in helping their communities and our economy thrive. A sensible and careful review of Dodd-Frank and other financial regulations can and should strengthen those goals while unleashing the power of the banking industry — from small towns and communities to our nation’s financial centers — to fuel the increase in economic prosperity that we all seek.

Read the Dodd-Frank order.
Read the fiduciary rule memorandum.

Agencies Issue Report and Propose Action to Limit Bank Activities

2016-09-09T10:20:00.000-04:00

The Federal Reserve, FDIC and OCC have issued a long-awaited report mandated by Section 620 of the Dodd-Frank Act in which they called for sweeping changes to banks’ powers. Notably, the Fed recommended that Congress repeal the following: merchant banking authority for financial holding companies; grandfathered authority for physical commodities activities for certain FHCs; regulatory exemptions for industrial loan companies; and regulatory exemptions for grandfathered unitary savings and loan holding companies.

The Fed said it believes that “the existing statutory merchant banking authority enables FHCs to engage in activities that pose risks to the organizations’ safety and soundness,” adding in a footnote that it is “considering regulatory measures” to limit risks it associates with merchant banking authority independent of any action Congress might take.

ABA and other financial trade groups roundly opposed the “unfortunate and ill-considered” merchant banking recommendation. The groups said:

For the last 15 years, bank holding companies have successfully used the merchant banking authority granted to them by law to finance startups and growing companies, fueling jobs and economic growth. The regulators have made these recommendations without pointing to any evidence that these activities have ever posed any problem, and have made no attempt to assess the costs to businesses and jobs.

As part of its Section 620 review, the OCC issued a proposed rule that would prohibit national banks from dealing or investing in industrial and commercial metal. The rule – which would exempt the buying and selling of exchange, coin and bullion – would principally target bank involvement in the copper market, which was permitted under an OCC interpretive letter issued two decades ago. Comments are due on the proposal 60 days after it is published in the Federal Register.

The OCC also said it would clarify minimum prudential standards for national banks engaged in swap dealing, review risks posed to banks by membership in clearinghouses, update its investment securities regulations to reflect restrictions in the Volcker Rule, issue guidance or propose regulations to address concentration in mark-to-model assets and liabilities and reconsider whether to allow national banks to hold asset-backed securities as Type III securities. ABA staff will thoroughly review the recommendations and provide appropriate feedback to the agencies.

Read the report.
Read the OCC’s proposed rule.

Fed, FDIC Delay Deadline for Most ‘Living Wills’ to 2017

2016-08-03T10:00:00.000-04:00

The Federal Reserve and FDIC have announced that they are delaying the deadline to file resolution plans, or “living wills,” from Dec. 31, 2016, to Dec. 31, 2017, for 36 large banking organizations and two systemically important nonbanks. Meanwhile, the agencies said they will provide feedback on the 2015 round of resolution plans in time for the 2017 filing.

The delay does not apply to the eight U.S. institutions designated as “global systemically important banks”: Bank of America, Bank of New York Mellon, Citigroup, Goldman Sachs, J.P. Morgan Chase, Morgan Stanley, State Street and Wells Fargo.

The resolution plan process – which applies to U.S. bank holding companies with assets of more than $50 billion, nonbanks designated as systemically important by the Financial Stability Oversight Council and large foreign banks with U.S. operations – requires these large institutions to describe their strategy for a rapid and orderly wind-down in the event of stress. Planning requirements are tiered based on a firm’s level of complexity.

Read more.

The Week Ahead: July 11 - 15

2016-07-08T11:30:00.000-04:00

Monday

Effective Date FINCEN: Uniform Interagency Consumer Compliance Rating System Read more.

Applications Requested FRB: Solicitation of Applications for Membership on the Community Advisory Council Read more.

Tuesday

Meeting OCC: Minority Depository Institutions Advisory Committee Read more.

House Hearing: Making a Financial Choice: More Capital or More Government Control? Read more.

House Hearing: Examining the Opportunities and Challenges with Financial Technology (“FinTech”): The Development of Online Marketplace Lending Read more.

Wednesday

Comments Due CFTC: Position Limits for Derivatives: Certain Exemptions and Guidance Read more.

House Hearing: HUD Accountability Read more.

Thursday

Effective Date CFPB: Civil Penalty Inflation Adjustments Read more.

Meeting SEC: Investor Advisory Committee Meeting Read more.

Senate Hearing: Evaluating the Financial Risks of China Read more.

House Hearing: The Financial Stability Oversight Council and the Designation of Non-Bank Financial Companies Read more.

Friday

Comments Due CFPB: Evaluation of Financial Empowerment Training Program (PRA) Read more.

Comments Due FDIC: Agency Information Collection Activities: Submission for OMB Review; Charter and Federal Deposit Insurance Application; Interagency Guidance on Funding and Liquidity Risk Management; Appraisals for Higher-Priced Mortgage Loans; Interagency Guidance on Leveraged Lending Read more.

Comments Due OCC: Lending Limits Read more.

All times in Eastern Standard Time. See future events on the Dodd-Frank Calendar.

Federal Reserve Releases Annual Determination of Aggregate Consolidated Liabilities

2016-07-05T11:45:00.000-04:00

The Federal Reserve has released its annual determination of the aggregate consolidated liabilities of financial companies as required by the Dodd-Frank Act. The act prohibits a financial company from combining with another company if the resulting company's liabilities would exceed 10% of the aggregate consolidated liabilities of all financial companies.

As of July 1, 2016, aggregate consolidated liabilities equal $21,786,571,865,000. This number, which is the average of the year-end financial sector liabilities of the preceding two years, will be the measure of aggregate consolidated liabilities for the time period from July 1, 2016 through June 30, 2017.

Financial companies subject to the limit include insured depository institutions, bank holding companies, savings and loan holding companies, foreign banking organizations, companies that control insured depository institutions, and nonbank financial companies designated for board supervision by FSOC.

Read more.

U.S. Chamber’s Donohue Calls for Financial Reg Relief

2016-06-23T11:15:00.000-04:00

Thomas Donohue, president and CEO of the U.S. Chamber of Commerce, issued a full-throated defense of the banking industry and its role in helping American businesses grow. In a speech at the Nasdaq Stock Market in New York, Donohue called for Congress and regulators to lighten the regulatory burden on banks of all sizes that he said has limited financing for all kinds of companies and stymied growth. “Don’t forget that Wall Street and Main Street are inextricably linked,” he said. “They depend on each other.”

Donohue pointed out that the financial system is much more stable today, with higher levels of capital and “needed reforms” to derivatives. He said,

But Dodd-Frank, in combination with Basel III, got too much wrong – and we’re paying a steep price. Our economic engine is sputtering. The last eight years of restrictive, punitive, redundant, and overlapping regulations have undermined our system’s ability to finance the growth of companies large and small.

Dodd-Frank’s costs have spread into the broader economy, he said, with one-third of corporate finance executives saying they had to increase customer prices to comply with Dodd-Frank and 20% saying that had delayed or canceled investments. To address the burden, Donohue called for reforms to the CFPB and FSOC; relief from systemic risk regulation for regional and midsize banks; transparency for global regulatory negotiations in Basel, Switzerland; and stopping the Labor Department’s controversial fiduciary rule and the CFPB’s arbitration rule.

Read the speech.
Read a related Chamber report.

FSOC Highlights Risks of Blockchain, Marketplace Lending

2016-06-23T11:00:00.000-04:00

In its annual report and during its public session, the Financial Stability Oversight Council trained scrutiny on the potential risks posed by the growing use of new financial products and delivery mechanisms, including marketplace lending and distributed ledger or blockchain technology.

The council said:

[R]isks embedded in new products and practices may be difficult to foresee. Financial regulators will need to continue to be vigilant in monitoring new and rapidly growing financial products and business practices, even if those products and practices are relatively nascent and may not constitute a current risk to financial stability.

FSOC’s comments on blockchain technology represent the first time the body overseeing U.S. financial stability has raised the concern. While distributed ledgers are viewed by many in the financial industry as a secure way to reduce third-party transaction costs and risk exposures, FSOC warned that “operational vulnerabilities associated with such systems may not become apparent until they are deployed at scale” and that some systems may be vulnerable to fraud executed through collusion among a significant fraction of participants in the system.

As it has in the past, the FSOC report also highlighted risks associated with capital and liquidity, wholesale funding, housing finance and interest rate shifts, noting that regulators are seeking to address these through existing supervision or, in the case of housing finance, waiting for action from Congress on the future of the government-sponsored enterprises.

Read the report.

GAO Study on Regulatory Fragmentation and Inefficiency

2016-03-29T12:36:00.001-04:00

The U.S. Government Accountability Office (GAO) released a study that found the financial regulatory structure in the U.S. is complex and inefficient, with responsibilities fragmented among multiple agencies with overlapping authorities. According to the report, Congress should consider whether changes to the financial regulatory structure are needed to reduce or better manage these inefficiencies.

Furthermore, the report suggests Congress should consider whether legislative changes are needed to align the Financial Stability Oversight Council’s authorities with its mission to respond to systemic risks.

The GAO also recommends that the Office of Financial Research (OFR) and the Federal Reserve jointly articulate individual and common goals for their systemic risk monitoring activities and engage in collaborative practices to support those goals. Additionally, the OFR and Federal Reserve should regularly and fully incorporate their monitoring tools, assessments or results of monitoring activities into Systemic Risk Committee deliberations.

Read more.

The Week Ahead: December 7 - 11

2015-12-04T11:30:00.000-05:00

Monday

Comments Due FDIC: Annual Stress Test Reporting Template and Documentation for Covered Banks With Total Consolidated Assets of $10 Billion to $50 Billion Under Dodd-Frank (PRA) Read more.

Comments Due FDIC: FDIC Small Business Lending Survey (PRA) Read more.

Comments Due OCC/FDIC/CFPB/SEC: Joint Standards for Assessing the Diversity Policies and Practices of Entities Regulated by the Agencies Read more.

Tuesday

House Hearing: Oversight of the Financial Stability Oversight Council Read more.

All times in Eastern Standard Time. See future events on the Dodd-Frank Calendar.

Fed, FDIC Provide Guidance on Resolution Plans

2015-07-29T10:17:00.000-04:00

Following their review of resolution plans submitted last year, the Federal Reserve and FDIC said they are providing additional guidance — including areas for improvement in some cases — to 119 financial firms that will be expected to file updated resolution plans in December. The agencies also released an updated template for institutions filing tailored resolution plans.

The resolution plan process — which applies to U.S. bank holding companies with assets of more than $50 billion, nonbanks designated as systemically important by the FSOC and large foreign banks with U.S. operations — requires these large institutions to describe their strategy for a rapid and orderly wind-down in the event of stress. Planning requirements are tiered based on a firm’s level of complexity.

Yesterday's guidance applies to banks that submit resolution plans in December. Bank holding companies with more than $100 billion in assets submit resolution plans each year in July.

Read more.
View the tailored resolution plan template.

Appellate Court: Legal Challenge to CFPB May Proceed

2015-07-27T09:01:00.000-04:00

Reversing a lower court decision, a three-judge panel of the D.C. Circuit Court of Appeals allowed key parts of a constitutional challenge to certain provisions of the Dodd-Frank Act to proceed. The appellate court held that State National Bank, Big Spring, Texas, has standing to challenge the constitutionality of the CFPB and President Obama’s original recess appointment of CFPB Director Richard Cordray and that both of these claims are "ripe" for being heard.

The court upheld the district court’s determination that State National Bank does not have standing to challenge the constitutionality of the FSOC, which does not oversee or regulate it. The court also affirmed the lower court’s determination that a group of 11 states that joined the lawsuit do not have standing to challenge the “orderly liquidation authority” granted to regulators by the Dodd-Frank Act and that their claim is not ripe.

With Friday's decision, the claims for which State National Bank has standing may now return to the lower court for further proceedings.

Read the opinion.

Congressional Committees to Mark Dodd-Frank Anniversary

2015-07-20T09:46:00.000-04:00

With the fifth anniversary of the Dodd-Frank Act tomorrow, the House Financial Services Committee will meet on Thursday to discuss ending “too big to fail.”

The Senate Banking Committee will look at systemically important institutions this week, holding hearings on the FSOC on Wednesday and on how to measure the systemic importance of bank holding companies on Thursday.

The Week Ahead: July 20 - 24

2015-07-17T11:37:00.000-04:00

Monday

Meeting FRB: Sunshine Meeting Notice Read more.

Wednesday

Meeting OCC: Mutual Savings Association Advisory Committee Meeting Read more.

Thursday

Comments Due CFTC: Exemptions from Speculative Limits (Paperwork Reduction Act) Read more.

Final Rule FRB: Regulation D: Reserve Requirements for Depository Institutions Read more.

Meeting TREAS: Open Meeting of the Financial Research Advisory Committee Read more.

House Hearing: Ending ‘Too Big to Fail’: What is the Proper Role of Capital and Liquidity? Read more.

Senate Hearing: Measuring the Systemic Importance of U.S. Bank Holding Companies Read more.

Senate Hearing: Oversight of the Financial Stability Oversight Council Designation Process Read more.

All times in Eastern Standard Time. See future events on the Dodd-Frank Calendar.

FSOC Issues 2015 Annual Report

2015-05-20T16:00:00.000-04:00

The Financial Stability Oversight Committee released its annual report for 2015. The committee was established by the Dodd-Frank Act, with the purpose of identifying risks and responding to threats to U.S. financial stability.

This year’s report highlights two new topics that have received increased regulatory attention: changes in financial market structure and their impact on the provision of liquidity and market function, and central counterparties (CCP’s) and the importance of having robust frameworks for risk management.

Read more.

ABA to FSOC: Bank CITs Not Source of Financial Instability

2015-03-27T09:45:00.000-04:00

Bank collective investment trusts are not a significant source of risk to U.S. financial stability, ABA told the FSOC in response to FSOC’s inquiry into potential risks associated with the asset management industry. FSOC’s inquiry particularly focused on liquidity, redemptions and leverage of pooled investment vehicles, as well as operational risks and resolution of asset managers.

Bank CITs do not pose financial stability risks because of the fiduciary duties of the bank trustee, the limitations on participating accounts and the comprehensive regulatory regime to which they are subject, ABA said. In its letter, ABA also described briefly the rarely used process for resolving failed national and state-chartered trust companies that do not participate in the Deposit Insurance Fund to highlight that there is a regulator in place to methodically and quickly move assets held in fiduciary accounts to a receiving fiduciary bank.

Read the letter.

The Week Ahead: March 23 - 27

2015-03-20T12:34:00.000-04:00

Monday

Comments Due CFPB: Amending the Electronic Fund Transfer Act and the Truth in Lending Act Regarding Prepaid Financial Products Read more.

Tuesday

Hearing: Examining the SEC’s Agenda, Operations, and FY 2016 Budget Request Read more.

Hearing: The Federal Deposit Insurance Corporation’s Role in Operation Choke Point Read more.

Hearing: Capital Formation and Reducing Small Business Burdens Read more.

Hearing: Examining the Regulatory Regime for Regional Banks Read more.

Wednesday

Hearing: FSOC Accountability: Nonbank Designations Read more.

Thursday

Hearing CFPB: Payday Lending RSVP.

ABA Webcast: ATR/QM: Minimizing Examination Risk and Calculating Points and Fees RSVP.

All times in Eastern Standard Time. See future events on the Dodd-Frank Calendar.

Obama Nominates Gerety to Treasury Post

2015-02-26T11:15:00.001-05:00

President Obama said he would nominate Amias Gerety to serve as assistant Treasury secretary for financial institutions. Gerety served last year in the post on an acting basis and previously worked with the FSOC.

Read more.

FSOC Designates Nonbank Financial Company for Enhanced Supervision

2014-12-19T11:07:00.000-05:00

The FSOC announced that it voted to designate a nonbank financial company to consolidated supervision by the Board of Governors of the Federal Reserve System and enhanced prudential standards. Treasury Secretary Jacob J. Lew, Chairperson of the Council said:

After a year and a half of extensive and in-depth analysis — including significant engagement with the company — the Council has determined that material financial distress at MetLife could pose a threat to U.S. financial stability. Designation of a nonbank financial company is a critical tool for the Council to address potential threats to U.S. financial stability. Consistent with its mandate, the Council remains focused on protecting the broader economy from the types of risk that contributed to the financial crisis.

The Council’s designation is the product of a three-stage process, during which the Council (1) applies uniform quantitative thresholds to identify nonbank financial companies for further evaluation, (2) analyzes the companies using a broad range of information available to the Council primarily through existing public and regulatory sources and (3) contacts each company that the Council believes merits further review to collect information directly from the company that was not otherwise available in the prior stages. Each nonbank financial company that is reviewed in Stage 3 is immediately notified that it is under consideration and is provided an opportunity to submit written materials related to the Council’s consideration of the company for a proposed designation.

Read the FSOC press release.

Fed Requests Comment on Regulation of FSOC Designation

2014-12-01T09:56:00.000-05:00

The Federal Reserve Board invited public comment on enhanced prudential standards for the regulation and supervision of General Electric Capital Corporation (GECC), a nonbank financial company that the FSOC has designated for supervision by the Board.

The Board is proposing to apply enhanced prudential standards to GECC that are generally similar to those that apply to large bank holding companies. Those similar standards include requirements for risk-based and leverage capital, capital planning, stress testing, liquidity, and risk management.

Read more.

FSOC Could Improve Nonbank Designation Process

2014-11-20T16:08:00.000-05:00

Further actions could improve the FSOC’s nonbank designation process, according to a GAO study.

Currently, FSOC uses committees comprising of staff from member agencies to help it evaluate nonbank financial companies and determine if they will be designated as systemically important and receive enhanced supervision. FSOC published a final rule and guidance that establish a three-stage process and an analytical framework for evaluating whether nonbank financial companies meet a statutory determination standard and for proposing and finalizing determinations.

GAO found that there are key areas in which FSOC could enhance accountability and transparency to the designation process:

FSOC has not centrally recorded key processing dates, tracked the duration of evaluation stages, or collected information on staff conducting evaluations, limiting FSOC’s ability to effectively monitor the progress and evaluate the quality and efficiency of determination evaluations.
FSOC’s documentation of its transparency has not always included details. FSOC’s public documents have not always fully disclosed the rationales for its determination decisions, which has resulted in questions about the process and may hinder accountability and public and market confidence in the process.
FSOC has evaluated how companies might pose a threat to financial stability using only one of two statutory determination standards (a company’s financial distress, not its activities). Not using the two statutory determination standards may pose a threat to U.S. financial stability.

Read the GAO report.

Fed Amends Reg HH & Payment System Risk Policy

2014-10-29T10:58:00.000-04:00

The Federal Reserve Board issued a final rule to amend the Regulation HH risk-management standards for financial market utilities that have been designated as systemically important by the Financial Stability Oversight Council (FSOC).

The amendments and revisions include establishing separate standards to address credit risk and liquidity risk, new requirements on recovery and orderly wind-down planning, a new standard on general business risk, a new standard on tiered participation arrangements and heightened requirements on transparency and disclosure.

Read more.

GAO: FSOC Lacks Transparency, Accountability, Collaboration

2014-09-18T09:21:00.000-04:00

The FSOC still lacks a comprehensive, systematic approach to identify emerging threats to financial stability, according to a GAO study on the FSOC’s Status of Efforts to Improve Transparency, Accountability and Collaboration. Since the 2012 report, the GAO report continues, the Office of Financial Research (OFR) has made some progress in developing data tools to support FSOC, but GAO’s observations of two of these tools suggest that one tool does not focus on risks to the financial system, while another remains in a prototype phase.

Also, the GAO said that the FSOC could do more to improve transparency and accountability. In May 2014, FSOC staff said they had attempted to provide more information in the minutes of the meetings, but due to the confidential information discussed, they did not intend to keep detailed minutes. Furthermore, FSOC staff said that the impact of designating nonbanks for enhanced supervisions would be assessed as part of a mandated January 2016 study, but they have not begun to prepare for this study.

Regarding the GAO’s recommendations for improved coordination between FSOC, OFR and member agencies, FSOC said they did not plan to clarify the roles and responsibilities of the aforementioned agencies because the overlapping responsibilities for monitoring systemic risk had not been problematic.

Read the GAO study.