Proposals for a supplemental leverage ratio would treat cash, and the safest cash-like assets, like any risky asset. This may discourage banks from keeping their current high levels of liquidity.
With the CFTC on hiatus during the government shutdown, the industry should take the opportunity to consider the potential damage for a market that has become integral to banking.
Janet Yellen shouldn't have needed anyones help to be nominated to lead the Fed. Her tortuous path underscores the importance of rallying around qualified women candidates for industry leadership positions.
The distinguished economist will have to make monetary policy a priority during her tenure as Fed chair. But Yellen wont forget about her financial regulatory role and is likely to support stricter capital requirements along with enhanced nonbank supervision.
Placing the Federal Housing Administration inside the proposed Federal Mortgage Insurance Corporation would provide singular oversight for balancing the post-GSE mortgage market and a fully federal guaranteed market for specified market segments.
If history bears any indication of where this fight will wind up, New Yorks top bank regulator, Benjamin Lawsky, could be headed for a long, slow, expensive defeat.
