It is widely believed that the U.S. financial system needs a "systemic risk" regulator to help prevent future financial crises. The debate is centered not on whether we should have such a regulator, but on which agency should be anointed and what powers it should have.

I was skeptical about a systemic risk regulator when it was first proposed because the proposal was for the Federal Reserve Board to be the regulator. I believe that would be unwise for two reasons.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.