Dodd-Frank

Bond Rating Agency Reform

Update 547 — Bond Rating Agency Reform:Hearing on “Unfinished Title” of Dodd-Frank Long-regarded as the unfinished business of Dodd-Frank, reform of the credit rating agencies central to the financial crisis of 2008 was the subject of Wednesday’s House Financial Services Subcommittee hearing. Chair Waters condemned bond rating agencies for giving AAA ratings to worthless mortgage-backed …

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A Round with the Regulators

Update 532 — A Round with the Regulators:Financial Policy Issues Left, Front and Center These are flush times for banks — lending volume, interest rates, and share prices are on the rise and the economy is primed for a vertical recovery. What could go wrong? This week, Congress heard from the heads of the financial …

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Yellen Moves Markets

Update 527 — Yellen Moves MarketsAnd Can Remove FSOC Roadblocks The Federal Reserve surprised no one last Wednesday by continuing its near-zero interest rate policy and large-scale asset purchases. But markets tumbled Tuesday after Treasury Secretary Janet Yellen mentioned the possibility of raising rates, at some point, to prevent the economy from overheating.  In the …

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Additional Testing Required

Update 450 — Additional Testing Required:What to Expect from the Fed’s Stress Tests In a month, we will celebrate the 10th anniversary of the signing of the Dodd-Frank Act, which codified annual Federal Reserve stress testing of major financial institutions to see if they can withstand various hypothetical macroeconomic hardships. No one contemplated COVID then, …

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Amid Market Viral and Spiral

Update 417: Amid Market Viral and Spiral,A Survey of Business and Consumer Debt In the midst of the coronavirus panic, the Dow plummeted 1,191 points yesterday — the biggest single-day point drop in history. This past week, the S&P 500 dropped 12 percent, making this a full-blown market correction from nowhere in just six trading …

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HFSC Hearing on S. 2155

Update 400 — HFSC Hearing on S. 2155, The (Stop) Wall Street Looting Act of 2019 As 2019 draws to a close and Congress moves toward adjournment by December 20, attention in Washington is on the narrowing windows of legislative opportunity.  In the economic policy arena, the focus is on the FY 2020 budget (the current …

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How Stable is Wall Street?

Update 384 —  How Stable is Wall Street:In a Downturn, Would TBTF Be Tested? With the nation’s economy showing signs of cooling off, attention naturally turns to the epicenter of the last financial crisis.  How would the Street — and, as a result, the system — fare if things go much further south? A key …

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The Economic Debate Offstage

Update 362 — The Economic Debate Offstage:Corporate Debt and Emerging Financial Risks All eyes will be on the first Democratic debate tonight in Miami.   Starts 9:00 pm ET and ends at 11:00. Ten — half the qualifying field of candidates — will participate tonight.  The other half will do so at the same venue …

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HFSC Megabank CEO Hearing

Update 345 — HFSC Megabank CEO Hearing:Private Custodians of Public Systemic Risk The CEOs of the nation’s biggest financial institutions will meet on Capitol Hill tomorrow for the first time since the financial crisis for a House Financial Services Committee hearing.  The purpose of this unusual gathering is to hold the firms these CEOs lead …

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Changing of the HFSC Guard (April 2)

Update 343 — Changing of the HFSC Guard:New Members and Majority on Capital Markets Tomorrow, the House Financial Services Subcommittee that considers bills regulating capital markets activities will do so for the first time this Congress.  Gone are the days when the Subcommittee’s majority pursued a deregulatory campaign to undo Dodd-Frank protections against abuses like …

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