Council aims to accelerate financial market reforms
WASHINGTON, June 6, 2012 /CNW/ - The Systemic Risk Council, a private
sector, volunteer group led by former Federal Deposit Insurance Corp.
chair Sheila Bair, will convene this month to monitor and encourage
regulatory reform of U.S. capital markets focused on systemic risk. The
independent, non-partisan council was formed by CFA Institute, the
global association of investment professionals that sets the standard
for professional excellence and The Pew Charitable Trusts, an
independent nonprofit organization that brings a rigorous, analytical
approach to solving today's most challenging problems. The Systemic
Risk Council is comprised of a diverse group of experts in investments,
capital markets and securities regulation, including senior advisor
Paul Volcker, former Chair of the Federal Reserve.
According to Bair, concerns over the slow progress of regulators and
standard-setters prompted the creation of the Systemic Risk Council.
The council will monitor and evaluate the activities of those with the
Congressional mandate to develop and implement Dodd-Frank provisions
related to systemic risk, including the Financial Stability Oversight
Council (FSOC) and the Office of Financial Research.
"The great challenge is to devise a system to identify risks that
threaten market stability before they become a danger to the general
public," said Sheila Bair, senior advisor to The Pew Charitable Trusts
and chair of the Systemic Risk Council. "As evidenced by the 2008
crisis and even recent headlines, we need a more effective and
efficient early-warning system to detect issues that jeopardize the
functioning of U.S. financial markets before they disrupt credit flows
to the real economy. And two of the most critical tasks are how to
impose greater market discipline on excess risk taking and effectively
end the doctrine too-big-too-fail."
The Systemic Risk Council expects to evaluate and provide commentary on
the existing efforts of regulators to design and implement a credible
and globally-coordinated systemic risk oversight function. Council
activities will include reports and commentary to the FSOC and its
member regulators as they adopt regulations to prevent the type of
severe financial disruptions which occurred in 2008 when global
financial markets began to unravel.
"Despite the magnitude of the financial crisis, prospects for major
reform of regulatory systems are inadequate and vague," said John
Rogers, CFA, president and CEO of CFA Institute and Systemic Risk
Council member. "This council will serve as an essential sounding board
for systemic risk reforms focused on strong investor protection, and
offer a critical voice to promote the enforcement of regulations,
financial disclosure and transparency."
"This new council is composed of experts with a thorough understanding
of the issues, and we are pleased to support their efforts to find
nonpartisan and independent recommendations," said Rebecca W. Rimel,
president and CEO of The Pew Charitable Trusts. "The reforms to our
nation's financial system enacted by Congress and signed by the
president in 2010 were an important first step. The task now is to
implement these reforms, especially those related to systemic risk."
The council plans to issue a call to action on June 18, at The Pew
Charitable Trusts in Washington, D.C., detailing the objectives and
future plans for the Systemic Risk Council.
Members of the System Risk Council are:
Sheila Bair, The Pew Charitable Trusts, Former FDIC Chair
Paul Volcker, Former Federal Reserve Chair
Brooksley Born, Former U.S. Commodity Futures Trading Commission Chair
Bill Bradley, Former U.S. Senator (D-NJ)
William Donaldson, Former U.S. SEC Chair
Harvey Goldschmid, Columbia Law School, Former U.S. SEC Commissioner
Jeremy Grantham, Co-founder & Chief Investment Strategist, Grantham Mayo
Van Otterloo (GMO)
Chuck Hagel, Distinguished Professor, Georgetown University, Former U.S.
Richard Herring, The Wharton School, University of Pennsylvania
Simon Johnson, Massachusetts Institute of Technology Sloan School of
Hugh F. Johnston, Exec. VP & CFO, PepsiCo
Ira Millstein, Legal Counsel to SRC; Chair, Columbia Law School, Center
for Global Markets and
Maureen O'Hara, Cornell University Johnson School of Management
Paul O'Neill, CEO, Alcoa, Former U.S. Treasury Secretary
John S. Reed, Former Chairman and CEO of Citicorp and Citibank
John Rogers, CFA, President and CEO, CFA Institute
Alan Simpson, Former U.S. Senator (R-WY)
About CFA Institute
CFA Institute is the global association of investment professionals that
sets the standard for professional excellence and credentials. The
organization is a champion for ethical behavior in investment markets
and a respected source of knowledge in the global financial community.
The end goal: to create an environment where investors' interests come
first, markets function at their best, and economies grow. CFA
Institute has more than 110,000 members in 139 countries and
territories, including 101,000 Chartered Financial Analyst
charterholders, and 136 member societies. For more information, visit www.cfainstitute.org.
About The Pew Charitable Trusts
The Pew Charitable Trusts, an independent nonprofit, is the sole
beneficiary of seven individual charitable funds established between
1948 and 1979 by two sons and two daughters of Sun Oil Company founder
Joseph N. Pew and his wife, Mary Anderson Pew. The Pew Charitable
Trusts is driven by the power of knowledge to solve today's most
challenging problems. Pew applies a rigorous, analytical approach to
improve public policy, inform the public, and stimulate civic life. For
more information, visit www.pewtrusts.org.
SOURCE CFA Institute
For further information:
The Pew Charitable Trusts, Washington DC
+1 (202) 540-6507
CFA Institute, New York
+1 (212) 418-6889