GSIBs

The Fed announced Vice Chairman Stanley Fischer will depart in October, giving Trump the ability to rapidly reshape the central bank and target Dodd-Frank Act rules.

The rule limiting the largest U.S. banks’ ability to enter into contracts with early termination clauses is intended to forestall a liquidity crunch if the bank is under stress.

The purpose of the stress tests program is to reassure the public that the banking system is safe, but the stress tests are not an independent assessment of financial institutions’ actual strength.

The solution supported by the largest institutions and some officials to what banks say is a market liquidity problem would only make matters worse.

It would be a pity if our bad collective memory led to an increase in systemic risk in the U.S. regulatory system, with possible international implications, so soon after the crisis.