All Articles Finance Modern Money ICYMI - November 8

ICYMI – November 8

2 min read

Modern Money

A collection of stories from SmartBrief publications and around the web…

Adios Bart: The departure of Bart Chilton from the Commodity Futures Trading Commission inspires two thoughts:

  1. There goes the last of the “fun” regulators. Chilton is well-known for his Jimmy Buffett looks and spicy sound bites, but the truth is there might not be a more accessible regulator out there who is willing to share their controversial opinions with anyone who takes the time to simply ask. Always approachable and always entertaining, the press corp will miss him.
  2. The timing of Chilton’s departure in that it coincides with the departure of Chairman Gary “The Reformed Regulator” Gensler leaves a gaping hole in the makeup of the CFTC. There is little chance their replacements will share their inclination to … you know … regulate. When the next financial crisis hits and derivatives are involved, remember the exit of these two individuals.

Too-Big-To-Fail or Too-Risky-To-Fail?: The Milken Institute says regulators would do well to examine the risk level within big banks rather than worry just about their size.

Love the Scandinavians … then ignore the Scandinavians: In the immediate aftermath of the financial crisis of the late 2000s, the regulatory reforms Scandinavia put in place to cope with its crisis in the 1990s were held up as a template for the rest of the world to follow.  Five years on and the Scandinavian template has pretty much been ignored. CFA Institute President and CEO John Rogers says it isn’t too late. “The world potentially has got some things to learn from the experience from the Nordic financial crisis of the early 1990s. … We’re not paying enough attention to those lessons.”

Deep dive on EMIR vs. Dodd-Frank for OTC derivatives: HSBC’s Henry Raschen compares and contrasts the clearing and reporting of OTC derivatives transactions pursuant to EMIR and Dodd-Frank.