Main Content

Supervision and Enforcement

  • For the Record

    Paul Saltzman

    This issue examines the issues that affect FBOs doing business in the U.S.
  • The Art of the Possible: Prospects for Financial Services Legislation in the 114th Congress

    Samuel Woodall III

    With a Republican-controlled Congress and a Democratic president, the conventional wisdom is that the next two years will portend an extended and partisan political stalemate that will stymie any prospect for enactment of meaningful financial services legislation. However, real opportunities for the advancement of financial services legislation are in play. In fact, if recent history is any indicator, Congressional Republicans will have the chance to do something that has been off limits for the last several years: amend Dodd-Frank.

  • My Perspective

    Rob Ceske

    As banks and other market participants were under-prepared for the liquidity challenges of the crisis, heightened focus on liquidity is justified. However, regulators should be wary of how new liquidity regulations interact with capital rules, impact greater risk management practices, and drive liquidity risk to the shadows.
  • Macroeconomic Modeling and Financial Stability: Lessons from the Crisis

    Andrew W Lo

    The dynamic stochastic general equilibrium model (DSGE) marked a major milestone by capturing the dynamic change of economic variables over time. However, many DSGE models were exposed as having omitted critical structural linkages relevant to the financial crisis. To address these deficiencies, existing DSGE models should be enhanced to better incorporate the role of the financial sector and financial markets. In addition, these models should reexamine key micro-foundations of the model and consider behavioral components.
  • Fire Extinguishers & Smoke Detectors: Macroprudential Policy and Financial Resiliency

    Randall Kroszner

    Since the financial crisis, a debate has emerged about the appropriate role of central banks as an ex ante “smoke detector” and as an ex post “fire extinguisher.” While a greater focus on financial stability concerns is valuable, policymakers should not underestimate the difficulty of undertaking effective macroprudential policy and should be mindful of significant challenges to implementing such policy, challenges that could ultimately undermine market discipline.