Systematic Risk

CMC attended this event last Friday.  Center for Capital Markets Competitiveness (CCMC) hosted an event discussing systemic risk and the designation process. Three main themes surfaced throughout the conversation: designation is not a simple task, regulators need to err on the side of caution when designating, and regulators need to be clear what designation means.  Below is an article from MarketWatch which summarizes the event.  In addition, CCMC filed a letter to FSOC regarding its proposed rule regarding authority to require supervision and regulation of certain nonbank financial companies.  In the letter, we express serious concerns regarding the lack of transparency in the development of the proposal and the failure to provide meaningful guidance for designation.  We also cite the Council for not being fully constituted while continuing to embark on substantive rulemaking.  The CCMC reiterated its position that the Council should err on the side of non-designation as there are consequences of being designated as systemically important.  Click here to read the letter. For more information contact Alice Joe (ajoe@uschamber.com or 202-463-5340).

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