SIFMA CEO Promotes Options For Sound Regulation Of Systemic Risk

The Securities Industry and Financial Markets Association's (SIFMA) president and CEO, Tim Ryan, testified before the Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises in support of the creation of a financial stability regulator, but raised a number relevant

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The Securities Industry and Financial Markets Association’s (SIFMA) president and CEO, Tim Ryan, testified before the Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises in support of the creation of a financial stability regulator, but raised a number relevant policy questions surrounding its proposed implementation.

“Although our members continue to consider this issue, there seems to be consensus that we need a financial markets stability regulator as a first step in addressing the challenges facing our overall financial regulatory structure, says Ryan.

“There are a number of options for who might be the financial markets stability regulator. One option is to create a new independent federal agency, possibly within Treasury. Another option is a panel of regulators such as the President’s Working Group.”

“Yet another option is to make the Federal Reserve the financial markets stability regulator. Each of these options has advantages and disadvantages. We have identified a number of questions and tradeoffs that will confront policymakers in trying to mitigate systemic risk.

L.D.

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