Financial Regulation

Transcript

Too Big to Get Wrong: Getting Financial Regulatory Reform Right

Speaker: Robert E. Diamond
Presider: Maria Bartiromo

This meeting is part of the CEO Speaker Series. This series provides a forum for leading global CEOs to share their priorities and insights before a high-level audience of CFR members. The series aims to educate the CFR membership on the private sector's important role in the policy debate by engaging the global business community's top leadership. Members benefit from hearing CEOs' perspectives as well as interacting with them in an informal setting; in turn, CEOs have the opportunity to highlight the work of their organization and strengthen their relationship with CFR.

See more in Global; Financial Regulation; International Finance

Audio

C. Peter McColough Series on International Economics: The Global Financial Crisis: Causes and Consequences (Audio)

Speaker: Alan Greenspan
Presider: Peter G. Peterson

Listen to Alan Greenspan, president of Greenspan Associates LLC and former chairman of the Federal Reserve Board, outline the causes of the financial crisis and what the outcomes have been, including large fiscal deficits and new financial reforms.

See more in Financial Crises; Financial Regulation; United States

Other Report

Credit Default Swaps, Clearinghouses, and Exchanges

Author: Squam Lake Working Group on Financial Regulation

Credit default swaps (CDS) are contracts that provide protection against the risk of default by borrowers. The failure of one important participant in the CDS market can destabilize the financial system by inflicting significant losses on many trading partners simultaneously. A clearinghouse could in theory reduce counterparty risk by standing between the buyer and seller of protection, insulating the counterparties’ exposure to each other’s default. This Working Paper, the fifth in the Squam Lake Working Group series distributed by the Center for Geoeconomic Studies, analyzes the market for credit default swaps and makes specific recommendations about appropriate roles for clearinghouses and about how they should be organized.

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Other Report

A Systemic Regulator for Financial Markets

Author: Squam Lake Working Group on Financial Regulation

Financial regulations in almost all countries are designed to ensure the soundness of individual institutions, principally commercial banks, against the risk of loss on their assets. This focus on individual firms ignores critical interactions between institutions and can also cause regulators to overlook important changes in the overall financial system. The solution: One regulatory organization in each country should be responsible for overseeing the health and stability of the overall financial system. This Working Paper, the fourth in the Squam Lake Working Group series distributed by the Center for Geoeconomic Studies, argues that the central bank should be charged with this important new responsibility.

See more in Financial Regulation; Financial Markets; Global

Other Report

Reforming Capital Requirements for Financial Institutions

Author: Squam Lake Working Group on Financial Regulation

This Working Paper, the second in a series from the Squam Lake Working Group distributed by the Center for Geoeconomic Studies, argues that regulators consider systemic effects when setting bank capital requirements. Everything else the same, capital requirements should be proportionately higher for larger banks, banks that hold more illiquid assets, and banks that finance more of their operations with short-term debt. But capital requirements are not free. When designing capital requirements that address systemic concerns, regulators must weigh the costs such requirements impose on banks during good times against the benefit of having more capital in the financial system when a crisis strikes.

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Op-Ed

A Risky 'Systemic' Watchdog

Author: Sebastian Mallaby
Washington Post

Sebastian Mallaby writes that the Frank proposal for a new "systemic risk regulator" is dubious. The sad truth is that crowded trades are near-impossible for the government to identify.

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Op-Ed

Testing Time for a Young Administration

Author: Roger M. Kubarych
Nikkei

In this Nikkei op-ed, Roger Kubarych analyzes the early challenges facing the Obama administration with regards to the economic crisis. He writes that the ugly stock market response to the Geithner plan will make it all the harder to recapitalize the U.S. financial system without taxpayers footing the bill.

See more in Financial Crises; Financial Regulation; United States

Audio

McKinsey Executive Roundtable Series in International Economics: Beyond Firefighting: Rethinking Financial Market Regulation (Audio)

Speakers: William H. Donaldson, Stephen Friedman, and Ernest Patrikis
Presider: John Gapper

Listen to experts including former Securities and Exchange Commission Chairman William Donaldson discuss what implications the 2008 financial crisis is likely to have for securities regulation.

See more in Global; Financial Markets; Financial Regulation