"Isn't it true that there has never been a major crisis that resulted from excessive exposures to what was considered risky, and that these have always resulted from excessive exposures to what was perceived as not risky?"
PricewaterhouseCoopers failed to warn shareholders and the public about increased risk at Barclays. The auditor gave the British bank a clean report card on internal controls over financial reporting. We now know those controls were seriously deficient.
The Office of Financial Research is not yet fully operational. Critics on the Hill want to gut the agency. Its forthcoming annual report presents a chance to win over lawmakers.
Neither the FSOC nor the OFR is up and running well enough to address systemic risk. The Systemic Risk Council, a new private-sector nonprofit group, will likely change that.
Though banks must show they are resolvable, a financial institution can also use its resolution plan to advocate preferred solutions to issues on the horizon. And other lessons from the process so far.
You've probably heard of the Office of Financial Research's database for tracking financial companies like barcodes. It's also tasked with building another system that's equally critical - and a much greater technical challenge.
Much time and energy was spent on a campaign to regulate an optional service consumers could avoid paying for. Meanwhile, mortgage securitization was going gangbusters. Priorities were perhaps misplaced.
