Publication: Wall Street Journal Author: Sheila Bair 4/01/2013 —The recent Senate report on the J.P. Morgan Chase “London Whale” trading debacle revealed emails, telephone conversations and other evidence of how Chase managers manipulated their internal risk models to boost the bank’s regulatory capital ratios. Risk models are common and certainly not illegal. Nevertheless, their use in bolstering […]
Today, Systemic Risk Council (SRC) chair Sheila Bair welcomed Alice M. Rivlin as the newest member of the Council: “Alice Rivlin is a leading voice on financial policy, with a breadth of experience which is second to none. I am pleased and honored that she has agreed to join the SRC,” Bair stated. Alice Rivlin […]
Publication: Politico Author: Brooksley Born and William Donaldson 3/10/2013 —Washington has been abuzz with the automatic, across-the-board spending cuts taking effect, known as the sequester. While many have been focused on the impact on education, law enforcement and transportation safety, another important area that deserves attention is the impact on our financial market regulators: the […]
Publication: Yahoo! Finance Author: John Rogers 12/20/2012 —I watched the movie “Contagion” on a recent flight to Asia. It tends to dampen the enthusiasm for culinary adventures. In reality, it’s a lot more likely that our next global contagion will come from financial markets, and not from some butcher shop in Asia. Everything we know about financial systems points […]
Publication: New York Times Author: Edward Wyatt 11/13/2012 – WASHINGTON — A council of top financial regulators, upset with the Securities and Exchange Commission for failing to strengthen rules governing money market mutual funds since the financial crisis, is trying to force the S.E.C. to adopt stricter regulations. The Financial Stability Oversight Council, a group of 10 regulators that includes the S.E.C. chairwoman, […]
Publication: Reuters Author: Ross Kerber 11/01/2012– Former financial regulator Sheila Bair voiced worries about a new industry compromise plan for money market mutual funds, including implementing a fee for withdrawals during times of stress, saying it could worsen a crisis. Fund companies met with regulators last week in Washington, hoping they would accept limited new rules for stabilizing the funds if necessary. But Bair […]
Publication: Yahoo! Finance Author: Simon Johnson 10/24/2012 —Prior to September 2008, few officials focused on “systemic risk” — the idea that a single firm or a particular asset class could create a vulnerability that would bring down the financial system and do great damage to the real economy. Then Lehman Brothers failed and the repercussions threatened to shut down […]
Publication: Financial Times Author: Shahien Nasiripour and Tom Braithwaite 11/13/2012– A group of former senior US financial regulators has urged authorities to drastically cap big banks’ borrowings, adding to a growing chorus of sceptics who are challenging the international response to the financial crisis. In a letter on Thursday, the Systemic Risk Council recommended to US bank regulators that […]
Publication: New York Times Author: Peter Eavis and Nathaniel Popper 08/23/2012 —After the failure of one effort to overhaul a major part of the mutual fund industry, top government officials worked on Thursday to find alternative ways to rein in what they see as a systemic threat to the financial system. Treasury Secretary Timothy F. Geithner and other top […]
Publication: Yahoo! Finance Author: Sheila Bair 07/20/2012 —The late Gilda Radner played an endearing character named Roseanne Roseannadanna on Saturday Night Live in the 1970s. The character would provide hilarious commentary on current events (usually accompanied by gross out observations on bodily functions) then conclude by saying “It’s always something — if it ain’t one thing, it’s another.” […]