There is broad agreement that stronger capital requirements will give us a much more resilient financial system and tame risk taking by forcing financial institutions to put more of their own ‘skin in the game’. This will help reduce volatility, sustain growth, and keep employment high. While we applaud recent efforts by US and international […]

The Systemic Risk Council is committed to addressing regulatory and structural issues relating to systemic risk in the United States. The goal is to help ensure a financial system in which we can all have confidence.  It is essential that policymakers show leadership through a strong and coordinated rule-writing process that promotes the development of […]

Money market funds are used as “cash management” products – often as bank deposit substitutes – that, like deposits, are redeemable on demand.  Unlike deposits, however, they have no capital, no insurance, no access to Federal Reserve liquidity and no legal requirements that their parent companies operate as a “source of strength.”  While the value […]

To provide direct support to the FSOC, Congress created the Office of Financial Research (OFR) and instilled in it vital responsibilities for systemic data collection and analysis. The OFR was specifically given responsibility for, among other things, collecting information from agencies represented by the FSOC members, other federal and state regulatory agencies, the Federal Insurance […]

To help avoid a repeat of the 2008 financial crisis where risk-taking in the “shadow sector” caused widespread damage to the financial system, the Dodd-Frank Act charges the FSOC with identifying systemically important nonbank financial institutions (SIFIs) for heightened oversight by the Federal Reserve.  In addition, the Act charges the FSOC with making recommendations to the Federal […]