The Committee has released a statement urging the Senate to consider the Economic Growth, Regulatory Relief and Consumer Protection Act (the “Bill”). The Bill provides regulatory relief for smaller financial institutions by, among other things, simplifying capital requirements, creating an exemptive safe harbor from the Volcker Rule, and raising the threshold for enhanced prudential standards. The […]
The Committee on Capital Markets Regulation seeks to clarify the state of the current debate on common ownership of equities by institutional owners and the potential anti-competitive behavior associated with such ownership. Given that the potential responses to the alleged antitrust concerns could prove quite harmful to savers and retail investors, it is important to […]
The Committee has updated the empirical portion of its seminal 2016 report on U.S. equity market structure. The updated data shows that there have been no major changes to U.S. equity market structure in the last year. The updated analysis can be accessed here.
By HAL S. SCOTT and JOHN GULLIVER Originally published by the Wall Street Journal on October 2, 2017. Is your personal information safe from the Securities and Exchange Commission? The SEC has mandated that U.S. stock exchanges and the Financial Industry Regulatory Authority establish a database by November 2018 that will store the names, birth […]
Committee Submits Comment Letter to Federal Reserve on Proposed Guidance on Supervisory Expectations for Boards of Directors
The Committee submitted a letter to the Federal Reserve (“Fed”) commending the Fed for seeking to clarify supervisory expectations for boards of directors, refocus expectations on boards’ core functions, and distinguish expectations for boards from those of management. The letter noted the Committee’s concern, however, that the Fed’s guidance could be construed as imposing rigid […]
Originally published by the CLS Blue Sky Blog on August 21, 2017 On July 17, SEC Commissioner Michael Piwowar extended an important invitation to U.S. public companies. “For shareholder lawsuits,” Piwowar offered, “companies can come to [the SEC] to ask for relief to put… mandatory arbitration into their charters.” To some, this idea may be unfamiliar […]
Professor Hal S. Scott and four economic experts – Charles W. Calomiris, Douglas Holtz-Eakin, R. Glenn Hubbard, and Allan H. Meltzer – published an article in the Journal of Financial Economic Policy entitled “Establishing credible rules for Fed emergency lending.”
The Committee on Capital Markets Regulation seeks to provide the public and policymakers with important factual details about the Glass-Steagall Act and the Gramm-Leach-Bliley Act (“GLBA”) to inform an important policy debate. This Nothing But The Facts (“NBTF”) statement explains how the Glass-Steagall Act prohibited commercial banks from directly engaging in certain securities activities and […]
Washington Post Op-ed: The White House and Lawmakers Want to Reinstate a 1930s Law They Don’t Understand
In recent months, the Trump administration and members of Congress have called for reinstating the Glass-Steagall Act, a Depression-era law that separated commercial banking from investment banking. That would be a serious mistake. Instead, Congress should repeal the Dodd-Frank financial reform’s “Hotel California” provision, which prevents large banks from voluntarily separating their commercial and investment banking activities.
By HAL S. SCOTT Originally published by CNBC on July 3, 2017 All 34 of the largest banks in the US passed the Federal Reserve’s latest stress tests. The assumptions about GDP and other criteria in the stress tests were “extreme” and “absurd.” The Fed and the Trump administration seem to hold opposite views on bank […]