2016 Regulatory Outreach for Student Education

Winter 2016 Program

ROSE 2016 Teams at the Federal Reserve
ROSE Program participants with Diana Hancock and Elizabeth K. Kiser (both front, center), Directors of the Federal Reserve Board's Research and Statistics Division, and Fordham faculty advisor Christopher Meyer (rear row, third from the right), Assistant Prof of Finance at Gabelli School of Business, at the Federal Reserve Bank April 27, 2016. 

The focus of the Winter 2016 ROSE Program was identification and measurement of step-in risk. Step-in risk refers to the risk that a bank will provide financial support to an entity beyond, or in the absence of, its contractual obligations should the entity experience financial stress. The 2016 project required students to formulate cogent and insightful comment responses to the Bank for International Settlement's (BIS) December 2015 consultative document  ("Consultation Paper") proposing a preliminary framework for identifying, assessing and addressing step-in risk potentially embedded in banks' relationships with shadow banking entities. 

Graduate and undergraduate students in economics, finance, accounting, management, and law, at Fordham Unversity formed five working groups and researched and drafted comment letters on the Consultation Paper and submitted their letters to a panel of distinguished industry judges.  After reviewing each excellent submission, the judges then had the difficult task selecting one winning letter to be presented at a visit to the Federal Reserve Bank. The winning team's letter was submitted in full to the BIS, along with a summary of the key ideas from the letters from each of the other four teams, and the submission was published on the organization's website with those of the consultation's other commenters.   

Visits to the Federal Reserve, Treasury Department, and FINRA 

Fordham at the Fed 2016

2016 ROSE Program scholars discuss policy issues with officials at the Federal Reserve in Washington, DC. 

In addition to the comment letter competition, the teams of Fordham students were invited to visit the Board of Governors of the Federal Reserve Bank in Washington, DC.  

At the April 27, 2016 meeting, the winning team presented its paper and findings to Fed officials. The teams of Fordham scholars also had the opportunity to discuss a wide range of issues related to economic policy and regulation. 

Fordham at the US Treasury Department 2016

ROSE Program students at the Treasury Department with Mark J. Mazur, Assistant Treasury Secretary for Tax Policy, in Washington, DC, April 27, 2016 

In addition to a visit to the Fed, the ROSE Program participants were invited to the Treasury Department and met with Mark J. Mazur, Assistant Treasury Secretary for Tax Policy, who described the operations of the Treasury and discussed a wide range of regulaory issues with the Fordham scholars, including  tax Inversions and corporate tax rates in general, transaction taxes, a more progressive tax system, a simpler tax system, and the "Panama List".

FINRA Panel 2016 ROSE Program MeetingROSE Scholars at FINRA

ROSE scholars discussing a variety of regulatory matters with FINRA officials, April 27, 2016.  (from right to left) Brant Brown, Associate General Counsel, Office of the General Counsel; Phillip Shaikun, Associate General Counsel, Office of the General Counsel; Gerri Walsh, President, FINRA Foundation and Senior Vice President, Investor Education; and Richard Vagnoni, Senior Economist, Office of Emerging Regulatory Issues

Officials at the Financial Industry Regulatory Authority (FINRA) graciously invited the ROSE scholars to visit them at their offices where a panel of senior FINRA officials discussed how the broker-dealer community is self-regulated, as well as how FINRA coordinates with the SEC.  In addition, the panel shared their perspectives on electronic trading, exchanges, and the challenges of independent (i.e., non-governmental) self-funding regulators.

CSFME Comment Letter

CSFME submitted a comment letter of its own supporting generally the goals of the Basel Committee to minimize the potential systemic implications resulting from situations where banks may choose to provide financial support during periods of financial stress to entities beyond or in the absence of any contractual obligations. The Center expressed some concerns and offered some suggestions, however, regarding the approach taken by the Consultation. Furthermore, by offering an example from the trade finance sector, the Center suppprted its belief that the nature of step-in risk may be one example of an acceptable, non-diversifiable exposure, given the potential positives for the economy at large.