Category Archives: Dodd-Frank

Can Prudential Regulation Help the Transition to a Green Economy?

By | February 22, 2019

Courtesy of Lorenzo Esposito[1], Giuseppe Mastromatteo[2] and Andrea Molocchi[3] Among the many lessons learned by the financial industry, central banks, and economists in the wake of the global financial crisis, the most important may be the relevance of systemic risk. In a market dominated by multinational financial conglomerates, developments and disruptions in one country can… Read More »

Will a Failed Megabank Be Liquidated? Don’t Bet On It

By | April 17, 2018

A vast literature has arisen discussing the tortured issue of taxpayer-funded bail-outs and the intimately related concept of ‘Too Big to Fail’ (TBTF). The idea behind it is relatively simple. TBTF describes a financial institution whose failure would cause such a tremendous level of harm to the economy that the responsible government will attempt to… Read More »

Signs of Life for Transatlantic Regulatory Cooperation

By | October 9, 2017

Courtesy of Barbara C. Matthews Implementing post-crisis reforms has created strains for the transatlantic regulatory policy community.  The large number of technical standards across all major areas of the financial system collided with increased efforts to assert national policy priorities.  Policy discord particularly dominated discussion of derivatives regulation, regulatory capital for banks, securitization, and cross-border… Read More »

Banks’ Progress in Capital Stress Testing Confronts Uncertain Future

By | January 3, 2017

Courtesy of Holly Presley Donald Trump’s surprise election has led many to believe that regulatory relief is on the way for large banks. This optimism has led to a surge in bank stock prices, with the KBW bank index up over 20% since the election. While Treasury Secretary designee Steve Mnuchin has said the new… Read More »

New Regulation Aims to Make Banking Fraud Less Lucrative

By | November 10, 2016

Carrie Tolstedt, the former head of Wells Fargo’s community banking division, was required to forfeit $19 million in compensation after the company came under intense public scrutiny for opening over 2 million unauthorized customer accounts. From 2011 to 2016, while the bank was firing over 5,000 low-level branch employees for engaging in this fraud, it… Read More »

Carmen Segarra and Competing Visions of Bank Supervision

By | October 25, 2016

The below are edited remarks from a speech I delivered at the Rethinking Regulation Seminar hosted by Duke University’s Kenan Institute for Ethics on October 25th, 2016. Today I will talk about an episode that occurred early in my tenure at the New York Fed.  And I tell this story not simply because it is… Read More »