Former FDIC Chair to Lead Systemic Risk Council, Monitor Financial Regulation
Washington, DC – 06/06/2012 – The Systemic Risk Council, a private sector, volunteer group led by former Federal Deposit Insurance Corp. chair Sheila Bair, will convene this month to monitor and encourage regulatory reform of U.S. capital markets focused on systemic risk. The independent, non-partisan council was formed by CFA Institute, the global association of investment professionals that sets the standard for professional excellence and The Pew Charitable Trusts, an independent nonprofit organization that brings a rigorous, analytical approach to solving today’s most challenging problems. The Systemic Risk Council is comprised of a diverse group of experts in investments, capital markets and securities regulation, including senior advisor Paul Volcker, former Chair of the Federal Reserve.
According to Bair, concerns over the slow progress of regulators and standard-setters prompted the creation of the Systemic Risk Council. The council will monitor and evaluate the activities of those with the Congressional mandate to develop and implement Dodd-Frank provisions related to systemic risk, including the Financial Stability Oversight Council (FSOC) and the Office of Financial Research.
“The great challenge is to devise a system to identify risks that threaten market stability before they become a danger to the general public,” said Sheila Bair, senior advisor to The Pew Charitable Trusts and chair of the Systemic Risk Council. “As evidenced by the 2008 crisis and even recent headlines, we need a more effective and efficient early-warning system to detect issues that jeopardize the functioning of U.S. financial markets before they disrupt credit flows to the real economy. And two of the most critical tasks are how to impose greater market discipline on excess risk taking and effectively end the doctrine too-big-too-fail.”