SEC Chair Gensler on Registration of Security-Based Swap Execution Facilities

By Gary Gensler November 3, 2023 by renholding

Today [November2], the Commission adopted final rules to create a framework for the registration of security-based swap execution facilities (security-based SEFs). I support today’s adoption because, through fulfilling Congress’s mandate, it increases the transparency and integrity of the security-based swap …

SEC Chair Gensler Talks Security-Based Swaps Market to ISDA

By Gary Gensler May 12, 2022 by renholding

Thank you for the kind introduction. It’s good to be back with the International Swaps and Derivatives Association (ISDA) again.

As is customary, I’d like to note that I’m not speaking on behalf of my fellow Commissioners or the SEC

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Why We Need a Guarantor of Last Resort

By Kathryn Judge May 15, 2019 by renholding

More than a decade has passed since the worst of the 2007-2009 financial crisis. In that time, we have learned that some of the gravest consequences of the crisis were not the economic fallout, but the political backlash it triggered. …

Why Dismantling Nonbank SIFI Regulation Is a Serious Mistake

By Jeremy C. Kress, Patricia A. McCoy and Daniel Schwarcz December 19, 2018 by renholding

The unnerving events of fall 2008 removed all doubt that investment banks and other nonbank financial firms can propagate systemic risk and endanger the world’s financial system. In response, Congress instituted a robust system for regulating systemic risk posed by …

The Unwise and Illegal Deregulation of Prudential Financial

By Jeremy C. Kress November 26, 2018 by renholding

On October 18, federal regulators released the largest U.S. insurance group, Prudential Financial, Inc., from enhanced government oversight. Prudential had been the last remaining systemically important financial institution (SIFI)—a designation Congress created in the Dodd-Frank Act for nonbank financial companies …

Lehman Brothers: How Good Policy Can Make Bad Law

By Kathryn Judge September 11, 2018 by renholding

As we approach the 10-year anniversary of the failure of Lehman Brothers, the news is again awash in a debate about whether policymakers could have saved the investment bank. That the issue remains so deeply contested reflects how fundamentally flawed …

A Retrospective on the Demise of Long-Term Capital Management

By Paul L. Lee September 10, 2018 by renholding

The 10th anniversary of the harrowing financial events of September 2008 is nearly upon us. The anniversary will undoubtedly be marked by various retrospectives analyzing those events. For a longer-term perspective, though, it may be helpful to consider another anniversary …

The Case Against Activity-Based Financial Regulation

By Jeremy Kress November 16, 2017 by renholding

An October 2017 Treasury Department report on the asset management and insurance industries includes an important—and fundamentally flawed—recommendation that could change the way U.S. regulators monitor risk in the financial system. The Treasury report recommends that regulators focus on identifying …

What’s the Value of a TBTF Guaranty? Evidence from the G-SII Designation for Insurance Companies

By Kathryn L. Dewenter and Leigh A. Riddick July 20, 2015 by ilyabeylin

Since AIG’s bailout in September 2008, the role of large, complex insurance firms in the global financial system has received much attention. Concern about the global operations, interconnectedness, and non-traditional activities of these large firms prompted the Financial Stability Board …

A Different Take on the AIG Case: The Dangers of Invoking 19th Century Principles to solve 21st Century Problems

By Kathryn Judge June 23, 2015 by ilyabeylin

Bagehot, as in Walter Bagehot, was mentioned no less than seven times in the decision splitting the baby in the AIG trial.[1] A nineteenth century British commentator, Bagehot was among the first to recognize that too little liquidity could …

The AIG Case: Moral Hazard on Steroids!

By John C. Coffee, Jr. June 17, 2015 by ilyabeylin

The AIG decision (actually, Starr International Co. v. The United States[1]) has shocked many but for the wrong reason. Some commentators have focused on the ingratitude of Maurice Greenberg, AIG’s former CEO and the “architect” of its international …

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