Systemic Risk Council Comments on the Treasury Departments October 2017 Reports

On February 23, 2018, the Systemic Risk Council submitted a comment letter to the United States Department of Treasury (UST) regarding the UST reports issued last October, entitled A Financial System That Creates Economic Opportunities: Capital Markets (Oct. 2, 2017) and A Financial System That Creates Economic Opportunities: Asset Management and Insurance (Oct. 26, 2017).

The Council believes that the UST Reports make a number of welcome recommendations that are broadly relevant to the stability of the financial system, but is concerned that they “do not give enough attention to the importance of resilience in capital markets, asset management and insurance.”

Rebuilding and maintaining a resilient financial system has been the central objective of the reform program since the global collapse in 2008. In light of the lack of attention given to resilience issues in the Reports, however, “there is a risk that stability issues will be neglected in any reforms pursued via Congress or the regulatory agencies.” The Council’s letter therefore focuses on outlining “an approach to thinking about stability beyond the core banking system” that “includes identifying markets on whose resilience the economy relies, and giving all relevant US agencies a statutory mandate to preserve a stable financial system.”

Read the full letter here: Systemic Risk Council Letter to Treasury October 2017 Report