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Fischer Says Financial Stability Panel Needs More Power 

July 11, 2014
Jeff Kearns, Bloomberg

Federal Reserve Vice Chairman Stanley Fischer said a council of financial regulators established by the Dodd-Frank Act may need more authority to help guard against threats to the banking system.

Members of a committee of key regulators, including the Fed and the Treasury Department, would benefit from having financial stability added to their mandates, Fischer said today in his first speech since joining the central bank.

The panel, known as the Financial Stability Oversight Council, could also be given greater independence to address systemic risks, Fischer, a former governor of the Bank of Israel, said in Cambridge, Massachusetts.

“It may well be that adding a financial stability mandate to the overall mandates of all financial regulatory bodies, and perhaps other changes that would give more authority to a reformed FSOC, would contribute to increasing financial and economic stability,” Fischer said. He cited research by former Fed Vice Chairman Donald Kohn, a senior fellow at the Brookings Institution in Washington who sits on the Bank of England’s Financial Policy Committee.

Read more: Bloomberg

 
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