Magazine article American Banker

Bair's Systemic Risk Council to Highlight 'What's Not Happening'

Magazine article American Banker

Bair's Systemic Risk Council to Highlight 'What's Not Happening'

Article excerpt

Byline: Joe Adler

WASHINGTON a A group of former policymakers are arguing that the government is not making good use of the regulatory reforms enacted in the Dodd-Frank Act nearly two years ago.

"Tools are only useful to the extent they are actively used, and used in the right way," Sheila Bair, former head of the Federal Deposit Insurance Corp., said Monday at the official launch of the Systemic Risk Council.

The new private-sector council, chaired by Bair and sponsored in part by The Pew Charitable Trusts, appears squarely focused on critiquing the slow pace of the Financial Stability Oversight Council, the panel of regulators headed by the Treasury secretary and charged with catching risks in the system before they effect financial Armageddon.

"After watching the slow progress of these bodies, we are concerned that little has been done to address systemic issues a[bar] throughout the financial system," said Bair, who is now senior advisor to Pew.

Bair, joined at Pew's Washington headquarters by other members of the new group for the announcement, said both FSOC and the new Office of Financial Research - which Dodd-Frank authorized to collect and analyze market data - have suffered from a lack of leadership.

"Somebody has to talk out and say what's not happening," said Ira Millstein, the group's legal counsel and director the Program on Global, Economic and Regulatory Interdependence at Columbia University's law and business schools, who called himself a "deeply frustrated, annoyed and angry citizen."

"It has no leader," Millstein said of FSOC. "Shouldn't the country know that FSOC, which was supposed to be the group to put this all together, has no leadership?"

The Systemic Risk Council, which is also sponsored by the CFA Institute, will focus on six areas requiring quicker action by FSOC and its individual members. …

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