One of the most important parts of Dodd-Frank is the creation of the Financial Stability Oversight Council and Office of Financial Research. One of FSOC’s most important responsibilities is the question of systemic risk, including the definition of which financial institutions are systemically important.
Because this issue is so important to the ability of financial institutions to continue to finance America’s economy, the Financial Services Roundtable today published a report that provides informtion and guidance to the FSOC on what it should consider as its regulatory process continues. The report is based upon three broad goals:
• To ensure that the resources of the Council, the Office, and the financial services industry are directed toward risks that have the greatest consequences for our financial system as a whole;
• To promote policy responses by the Council that balance financial stability against economic growth and innovation; and
• To focus data collection efforts of the Office on information most relevant to the identification and monitoring of systemic risk.
A copy of the report, ”Systemic Risk Implementation: Recommendations to the Financial Stability Oversight Council and the Office of Financial Research,” is available by clicking on the link.
Comments on what the Roundtable is recommending are welcome and encouraged.