Managing Systemic Risk: Restoring The Balance

A lot has been done to shore up financial regulations since the end of the crisis, mostly the result of Dodd-Frank, and some rules are still being developed (eg we just got new details about the liquidity coverage ratio rule this week). But as the memory of the crisis fades, the Bipartisan Policy Center (BPC) has reviewed the risk management regulations set out by Dodd-Frank and while it is supportive of the law in general it has identified five provisions that could prevent the government from effectively dealing with the next crisis. “The Dodd-Frank Act and other reforms that have…