The FSOC’s regulation of SIFIs
About This Event

 

 

 

Under the Dodd-Frank Act, the Financial Stability Oversight Council (FSOC) is authorized to designate certain financial firms as systemically important financial institutions (SIFIs).  A firm can be designated as a SIFI if, in the judgment of the Council, “financial distress” at such a firm could cause “instability in the US financial system.” Recently, there have been indications that the FSOC is preparing to designate asset managers as SIFIs, raising the possibility that the major firms in the capital markets may eventually be subjected to bank-like regulation.

At a special Capitol Hill lunch conference on Tuesday, May 6, experts gathered to discuss how the SIFI designation process consigns financial firms to bank-like regulation and could have a major adverse effect on competition, credit availability and economic growth in the United States.

Event Contact Information

For more information, please contact Emily Rapp at [email protected], 202.419.5212.

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For media inquiries, please contact [email protected], 202.862.5829.

Speaker Biographies

Daniel Gallagher was confirmed as a Commissioner of the US Securities and Exchange Commission (SEC) by the Senate on October 21, 2011. Commissioner Gallagher was on the staff of the SEC beginning in January 2006, when he served as a counsel to SEC Commissioner Paul S. Atkins and later as a counsel to SEC Chairman Christopher Cox. He worked primarily on major matters before the Commission involving the Division of Trading and Markets and the Division of Enforcement. He joined the Division of Trading and Markets as a Deputy Director in 2008, where he played a key role in the SEC's response to the financial crisis and other significant issues before the Commission, including those involving credit rating agencies and credit default swaps. He served as an Acting Director of the Trading and Markets Division from April 2009 to January 2010, after which he left the agency to become a partner in the Washington DC office of WilmerHale. Prior to his initial SEC service, Commissioner Gallagher was the General Counsel and Senior Vice President of Fiserv Securities, Inc., where he was responsible for managing all of the firm's legal and regulatory matters. Commissioner Gallagher began his career in private practice, advising clients on broker-dealer regulatory issues and representing clients in SEC and SRO enforcement proceedings.

For more than twenty years, Scott Garrett has been at the forefront of public policy deliberations dealing with issues related to the financial services industry, developing considerable expertise in areas ranging from securities and finance to insurance and regulatory oversight.At the start of the 112th Congress, Garrett was selected to serve as the Chairman of the Subcommittee on Capital Markets and Government-Sponsored Enterprises after serving as the Ranking Member in the 111th Congress. In this role, Garrett presides over the subcommittee with jurisdiction over equity, fixed income and derivatives markets; investment advisers and broker-dealers; the secondary mortgage market; the accounting and auditing profession; and the investment fund industry.  The Subcommittee also has primary oversight responsibilities for the Securities and Exchange Commission (SEC), the Federal Housing Finance Agency (FHFA),  the Financial Industry Regulatory Authority (FINRA), Financial Accounting Standards Board (FASB) and the Public Company Accounting Oversight Board (PCAOB). His notable legislative achievements include easing the burden placed on small business by Sarbanes-Oxley and lessening the reliance on credit rating agencies by removing their reference in statute and regulation.  So far in the 113th Congress, Garrett has authored the Protecting American Taxpayers and Homeowners (PATH) Act, the Swap Jurisdiction Certainty Act and a series of bills to increase accountability and transparency at the Federal Reserve, the Financial Stability Oversight Council (FSOC) and the SEC. Since his election to Congress in 2002, Garrett has consistently been one of the most active members of the House Financial Services Committee.  During his tenure on the committee, Garrett has served on the Subcommittees on Capital Markets, Insurance, and Government-Sponsored Enterprises; Financial Institutions and Consumer Credit;  Housing and Community Opportunity; and Oversight and Investigations. Prior to his election to Congress, Garrett served in the New Jersey General Assembly as the Chairman of the Banking and Insurance Committee. Garrett is a frequent guest on national television shows to discuss financial services issues, including appearances on CNBC, Fox News, Fox Business, CNN and MSNBC.  His op-eds have appeared in the Wall Street Journal and the Financial Times and he is regularly quoted in national business publications on issues related to financial services policy.

Paul H. Kupiec is a resident scholar at AEI, where he studies the management and regulation of banks and financial institutions markets, including issues of systemic risk and the impact of financial regulations on the US economy. Before joining AEI, Kupiec was director of the Center for Financial Research at the Federal Deposit Insurance Corporation (FDIC), and served as chairman of the Research Task Force of the Basel Committee on Banking Supervision. Before joining the FDIC, he held positions at the International Monetary Fund, Freddie Mac, J.P. Morgan, and the Board of Governors of the Federal Reserve System. Kupiec has served on the editorial boards of the Journal of Financial Services Research, Journal of Risk, and Journal of Investment Management. He is a member of the Shadow Financial Regulatory Committee.

Peter J. Wallison holds the Arthur F. Burns Chair in Financial Policy Studies at AEI, where he codirects the program on financial market studies. He was also a cochair of the Pew Financial Reform Task Force and a member of the congressionally authorized Financial Crisis Inquiry Commission. Wallison previously practiced banking, corporate, and financial law at Gibson, Dunn & Crutcher LLP in New York and Washington, DC. In 1986 and 1987, Wallison was White House counsel to former president Ronald Reagan. From 1981 to 1985, he was general counsel of the US Department of the Treasury, where he played a significant role in the development of the Reagan administration's proposals for deregulation in the financial services industry. He also served as general counsel to the Depository Institutions Deregulation Committee and participated in the US Department of the Treasury’s efforts to deal with the debt held by less-developed countries. Between 1972 and 1976, Wallison was special assistant to former New York governor Nelson A. Rockefeller and, subsequently, counsel to Rockefeller when he was vice president of the US.

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