Dodd-Frank

Assessing Asymmetrics, Crypto and Climate

Update 564 — Emerging Fin. Systemic Risks:Assessing Asymmetrics: Crypto and Climate Feverish negotiations on BIF and BBB continue on the Hill. Elsewhere in Washington, broader issues will get more attention once the big-ticket items are disposed of this fall. The Financial Stability Oversight Council (FSOC), created by the Dodd-Frank Act after the 2008 financial crisis, will face new, growing …

Assessing Asymmetrics, Crypto and Climate Read More »

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 …

Bond Rating Agency Reform Read More »

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 …

Yellen Moves Markets Read More »

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, …

Additional Testing Required Read More »

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 …

Amid Market Viral and Spiral Read More »

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 …

HFSC Hearing on S. 2155 Read More »

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 …

How Stable is Wall Street? Read More »