Despite Complinet consultant Nick Paraskeva's efforts to describe the path of the Obama Administration's reform proposals winding through Congress, one of the least certain aspects is the future role of the Federal Reserve.
The Fed will likely have a role in identifying and containing systemic risk, and putting the riskiest, most interconnected institutions under higher standards of capital, leverage, risk management and organizational complexity. The Fed may also have a role in unwinding failing institutions, but a fierce debate is raging in Washington as to whether the Fed will take on any of these tasks single-handedly or as part of a group of regulators.
While lawmakers are considering the Fed's future, it is important for firms to think about the Fed's authority over them under current law. Steven Goldberg of Grant Thornton, Michael Campbell and Homer Hill of the Federal Reserve Bank of New York, and Evan Charkes of Morgan Stanley helped illuminate this discussion.
In the
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