Identifying and Regulating Systemically Important Financial Institutions: The Risks of Under and Over Identification and Regulation

By Robert E. Litan on March 17, 2011

In response to legislation following the financial crisis of 2007-2009, Douglas J. Elliott and Robert E. Litan, Director at Global Economics Group, presented a policy brief (Identifying and Regulating Systemically Important Financial Institutions: The Risks of Under and Over Identification and Regulation) to assist the Federal Reserve Board and the Financial Stability Oversight Committee (FSOC) with determining which non-bank financial institutions should be designated as systemically important financial institutions. These institutions would be required to be supervised more closely and may be required to operate with greater safety margins, such as higher levels of capital, and to face further limitations on their activities. Identifying and Regulating Systemically Important Financial Institutions: The Risks of Under and Over Iden…

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Robert E. Litan