Recently released transcripts of Federal Reserve meetings during the last financial crisis reflect how blind policymakers remained to what was unfolding even at its peak. That suggests the Financial Stability Oversight CouncilÂ's efforts to sound an early warning next time around are reminiscent of Charlie Brown hoping Lucy wonÂ't pull away the football.
Continued focus on this single, but complex Dodd-Frank provision will distract bank managers and regulators from finding ways to make the global financial system healthier.
Prohibiting future ownership of unstable CLOs is probably a good thing. Forcing a select group of banks, however, to sell these assets over a short time is not the optimal solution.
I myself am a HMDA wonk, but one with a rather love-hate relationship to the numbers. I love what they reveal, but hate the headaches that come from wrestling with data.
The rule prohibits big foreign banks from allocating capital and liquidity in a manner they deem to be most efficient. This may be an acceptable price to pay if the overall result were enhanced stability, but trapping capital and liquidity in particular jurisdictions is likely to make large banks less resilient in times of crisis.
Before regulators go any further, they should open a public dialogue to make sure they don't do a lot more harm by eliminating the few lenders that remain.
Reforming the multifamily market will lead the way to a future housing finance system where private capital takes first-loss risk and uses ingenuity to responsibly serve all markets at all times.
Nonbank mortgage lenders want to significantly alter a time-tested formula with "membership-lite." Now is not the time to lessen the capital standards for Federal Home Loan Bank membership.
FATCA requirements affect a broad cross section of stakeholders and policies within financial institutions including, but not limited to, client onboarding, investment banking, documentation, treasury and collateral management.
