Sunday, June 4, 2017

FSB Publishes its Sixth Annual Shadow Banking Survey

Sector Remains Robust and Growing Despite New Regulation

Author: David Schwartz J.D. CPA

The Financial Stability Board’s (FSB) sixth annual shadow banking survey found that the shadow banking market remains robust and growing, equivalent to 13 percent of total financial system assets and 70 percent of the GDP of 28 covered jurisdictions. The report published May 10, 2017 presents the results of the FSB’s annual monitoring exercise to assess global trends and risks in the shadow banking system, reflecting data up to the end of 2015. It covers 28...

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Categories: All, Change Overview and Rationale, Formal Regulatory Remedies

Tags: FSB, Shadow Banking

Tuesday, May 30, 2017

Is Final Basel III Just Around the Corner?

"The output floor is the final piece of the jigsaw”

Author: David Schwartz J.D. CPA

In speeches on April 5 and May 25, 2017, William Coen, Secretary General of the Basel Committee, hinted that final Basel III standards are “just around the corner.” Despite a setback in January 2017 in which the Committee members could not reach accord on the calibration of the aggregate output floor, Coen signaled optimism for the upcoming meeting the Committee in June. In a May 25 speech, Coen announced that ‘based on feedback from the consultative process...

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Categories: All, Change Overview and Rationale, Formal Regulatory Remedies

Tags: Basel III

Wednesday, May 24, 2017

FDIC's Hoenig Offers Market-Based Cure for Regulatory Ills

Urges Openness to Regulatory Alternatives

Author: David Schwartz J.D. CPA

In a keynote address before the Systemic Risk and Organization of the Financial System Conference in California on May 12, 2017 FDIC Vice Chairman Tom Hoenig announced his novel market-based proposal to strengthen the financial system and provide regulatory relief and foster long-term economic growth. According to Hoenig, even after the financial crisis, "the U.S. financial system remains heavily subsidized, increasingly concentrated, and, despite a host of new efforts to...

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Categories: All, Change Overview and Rationale, Formal Regulatory Remedies

Tags: Reconsideration

Sunday, May 21, 2017

CFTC Chair Highlights Effect of Regulation on Liquidity

Urges Regulatory Recalibration and More Comity

Author: David Schwartz J.D. CPA

In a May 10, 2017 address, acting Chairman of the Commodity Futures Trading Commission (CFTC) J. Christopher Giancarlo highlighted some unintended consequences regulation is having on the swaps markets. In his speech before the International Swaps and Derivatives Association 32nd Annual Meeting in Lisbon, Portugal Giancarlo talked about the changes to swaps trading liquidity, market fragmentation and regulatory comity in the post-reform global swaps markets. After...

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Categories: All, Formal Regulatory Remedies

Tags: CFTC, Swaps, swaps clearing

Tuesday, May 16, 2017

Fed General Counsel Addresses the New Compliance Landscape

Compliance is More Important than Ever, but Approach May Be Too “Rules Based”

Author: David Schwartz J.D. CPA

In a May 9th Address, Michael Held, Executive Vice President and General Counsel of the Federal Reserve Bank of New York, gave his thoughts on the new compliance landscape. Held told his audience at SIFMA’s Compliance and Legal Society Monthly Luncheon that in recent years the role of compliance within supervised financial institutions has grown dramatically in size, scope, and relevance. He also said that since the financial crisis, risk and...

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Categories: All, Formal Regulatory Remedies

Tags: Risk Management, FRB, Compliance

Commentary

FSB Publishes its Sixth Annual Shadow Banking Survey

Sector Remains Robust and Growing Despite New Regulation

Is Final Basel III Just Around the Corner?

"The output floor is the final piece of the jigsaw”

FDIC's Hoenig Offers Market-Based Cure for Regulatory Ills

Urges Openness to Regulatory Alternatives

CFTC Chair Highlights Effect of Regulation on Liquidity

Urges Regulatory Recalibration and More Comity

Fed General Counsel Addresses the New Compliance Landscape

Compliance is More Important than Ever, but Approach May Be Too “Rules Based”

Journal Commentaries

Keep Regulation Functional (October 2008)

The Bear Market Posse, or Counterparty Risk Management during the Recent Turmoil (Sept. 2008)

Searching for New Paradigms at BIS (July 2008)

Will Basel II Affect The Competitive Landscape? (September 2003)