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 […]
The Committee’s Roadmap for Regulatory Reform sets forth priority regulatory actions for the Trump Administration that would promote U.S. economic growth and enhance the stability of the U.S. financial system. We believe that prompt action is necessary because certain regulations implementing the Dodd-Frank Act have stifled U.S. economic growth and policymakers have paid inadequate attention to regulatory measures that would enhance the performance of U.S. capital markets.
By HAL S. SCOTT Originally published by The New York Times on May 15, 2017 Somewhere in the United States right now, an entrepreneur is having trouble getting a small-business loan for expansion. The reason? The bank is committed to keeping a large portion of its money in government debt instead. After the financial crisis, […]
Fast-growing US companies and their investors lose out when they avoid going public.
The U.S. IPO markets are stagnating and they are in need of regulatory reform. Today, the Committee on Capital Markets Regulation, which includes representation from leading academics and the country’s largest banks, asset managers and hedge funds, is releasing a report on the declining attractiveness of U.S. public equity markets. According to Hal S. Scott, […]
CAMBRIDGE, Mass., The Committee on Capital Markets Regulation today released data on the total public financial penalties imposed on financial institutions in the United States for Q4 2016. Public financial penalties include public class action settlements that arise from class action lawsuits brought by the government (e.g., state attorneys general) and regulatory penalties that follow […]
By HAL S. SCOTT Originally published by CNBC on January 26, 2017 The Trump administration’s top financial regulatory priority should be a review of government-mandated bank capital requirements. In order to achieve economic growth, President Trump should adopt a more market-based approach. According to the Federal Deposit Insurance Corporation, bank capital in the United States stands at […]