One feature of the Dodd-Frank Act is the authority given to the Financial Stability Oversight Council (FSOC) to designate certain nonbank firms as systemically important, subjecting them to "stringent" regulation by the Federal Reserve Board. Could the exercise of this authority change the very nature of our financial system? Is the FSOC Dodd-Frank provision based on accurate information about what actually happened in the financial crisis, or does information only more recently available argue in another direction? Should this authority Dodd-Frank confers not be exercised until Congress has had an opportunity to reconsider the underlying facts?
The paper discussed by our experts is available here.
- Hon. Peter J. Wallison, Arthur F. Burns Fellow in Financial Policy Studies, American Enterprise Institute
- Hon. Wayne A. Abernathy, Executive VP for Financial Institutions Policy and Regulatory Affairs, American Bankers Association