The FSOC rescinded the SIFI label from one firm—but continues to fight a judge's removal of the SIFI tag from another.
Read More »Counsel’s Corner: Why Removing MetLife’s ‘SIFI’ Tag Doesn’t Make Sense
Robert C. Hockett of the Cornell Law Faculty breaks down a judge's recent decision to remove the "systemically important" designation from MetLife—and the implications for Dodd-Frank and the economy if the decision stands.
Read More »Fed Proposal Addresses Key Cause of Financial Distress Between Banks
During the crisis, excessive credit exposures between financial institutions resulted in the spread of financial distress and undermined financial stability. How will the Fed's new proposal solve this problem?
Read More »Lawmakers Revisit Concern Over Potential Repeat of GSE Bailout
Will Fannie Mae and Freddie Mac require another taxpayer-funded bailout as a result of their zero capital requirement?
Read More »Is the Financial Stability Oversight Council Enabling ‘Too Big to Fail’?
The FSOC has the authority to designate institutions as "systemically important," which opponents say leaves the door open for taxpayer-funded bailouts.
Read More »Lawmakers Debate ‘Too Big to Fail’ and Criteria for ‘Systemically Important’ Tag
Some members of the Subcommittee contended at the hearing that Dodd-Frank is codifying "too big to fail" by continuing to designate firms (both banks and non-banks) as SIFIs, therefore guaranteeing those firms a federal backstop should a financial crisis occur.
Read More »House Subcommittee to Hold Hearing On Banks Designated as ‘Systemically Important’
"Since the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, there has been much discussion by members of Congress, regulators, and academic experts related to the designation and regulatory standards for bank holding company SIFIs," the Committee wrote in a memorandum about Wednesday's hearing.
Read More »Fed Vice Chairman Speaks On Evolution of Supervisory Stress Tests
Even though the Fed's approach to stress testing has evolved in the last six years, some elements of the original SCAP remain in the stress tests conducted by the Fed today, such as supervisory stress scenarios applicable to all firms; defined consequences for firms that are deemed to be insufficiently capitalized; and public disclosure of the stress test results, according to Fischer.
Read More »