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Category Archives: Financial System

Financial Stability Oversight Council (FSOC): Structure and Activities

CRS Report – Financial Stability Oversight Council (FSOC): Structure and Activities. December 22, 2017 – February 12, 2018 R45052

“The Financial Stability Oversight Council (FSOC) and its Office of Financial Research (OFR) were established by the Dodd-Frank Wall Street Reform and Consumer Protection Act (P.L. 111-203) to address several potential sources of systemic risk. Some observers argue that communication and coordination of financial regulators was insufficient to prevent the financial crisis of 2008. To foster coordination and communication, the FSOC assembles the heads of federal financial regulators, representatives from state regulatory bodies, and an independent insurance expert in a single venue. The OFR supports the FSOC with data collection, research, and analysis. The FSOC does not generally have direct regulatory authority; its role is to make policy recommendations to member agencies where authority already exists or to Congress where additional authority is needed. However, it is responsible for monitoring financial stability and designating nonbank financial companies and financial market utilities as systemic, which subjects those entities to heightened prudential regulation and the direct regulatory authority of other agencies. The FSOC considers a company to pose a threat to financial stability if a company’s financial distress or activities could be transmitted to other firms or markets, causing broader disruptions to financial intermediation or other financial market functions. Three of the many relevant factors used for designation include leverage, interconnectedness with other systemically important nonbank financial institutions (SIFIs), and whether a primary prudential regulator already has responsibility for the SIFI and the activity. Additional FSOC and OFR responsibilities include

  • collection and analysis of financial data,
  • issuing nonbinding recommendations to member agencies,
  • facilitating the resolution of jurisdictional issues among member agencies,
  • issuing a congressionally mandated annual report, and
  • reviewing Consumer Financial Protection Bureau (CFPB) rules under some circumstances…”

Estimating and Projecting Potential Output Using CBO’s Forecasting Growth Model: Working Paper 2018-03

CBO Working Paper – Estimating and Projecting Potential Output Using CBO’s Forecasting Growth Model: Working Paper 2018-03, February 8, 2018. “As part of its responsibility for producing baseline projections of the economy and the federal budget, CBO regularly produces estimates and projections of potential output, a measure of the economy’s fundamental ability to supply goods and… Continue Reading

New budget estimated to keep deficits over $1 trillion mark indefinitely

The Committee for a Responsible Federal Budget: “Based on the score from the Congressional Budget Office (CBO), the budget deal would increase next year’s deficit to roughly $1.2 trillion. Annual budget deficits would remain over $1 trillion indefinitely.” Continue Reading

Report and analysis on modern day redlining in major metro areas

Reveal from The Center for Investigative Reporting: “In the 1930s, the federal government encouraged lending institutions to deny mortgages to people who lived in neighborhoods with large populations of immigrants and African Americans. The practice became known as redlining because the government drew lines around certain neighborhoods, deeming them “hazardous,” and colored them red. It… Continue Reading

The world’s worst money launderers are the UK, Switzerland and the USA

BoingBoing: ‘The USA has moved up in the Tax Justice Network’s Financial Secrecy Index to number two, behind Switzerland; in reality, though, the UK is the world’s worst money-laundry, but because its laundering activities are spread out over its overseas territories — taken as a whole, the UK leads the world in helping criminals and… Continue Reading

Great Recession’s Impact Lingers in Hardest-Hit Regions

“The New York Fed’s Center for Microeconomic Data today released our Quarterly Report on Household Debt and Credit for the fourth quarter of 2017. Along with this report, we have posted an update of state-level data on balances and delinquencies for 2017. Overall aggregate debt balances increased again, with growth in all types of balances… Continue Reading

Net Worth of the American Presidents: Washington to Trump

24/7 Wall St: “Though the presidency of the United States is a prestigious job, it does not pay as well as one might think. The annual presidential salary is $400,000, While this is still within the top 1% of American earners, it is very little when compared to the typical compensation given to America’s CEOs… Continue Reading

Dow Jones – 100 Year Historical Chart

Macrotrends: “Interactive chart of the Dow Jones Industrial Average stock market index for the last 100 years. Historical data is inflation-adjusted using the headline CPI and each data point represents the month-end closing value. The current month is updated on an hourly basis with today’s latest value. The current price of the Dow Jones Industrial… Continue Reading

FCW – White House looks to cut workforce, civilian-side funding

Federal computer Week: “…In its proposal, the White House terms the current civil service system “a relic of an earlier era,” and calls the laws and regulations surrounding hiring, pay, performance management and retirement “complex and outdated.” One of the proposed reforms to the civil service includes a pay freeze for civilian employees in 2019;… Continue Reading

President’s Budget FY19 and associated documents

Addendum to the President’s FY19 Budget to Account for the Bipartisan Budget Act of 2018 An American Budget – President’s Budget FY 2019 Major Savings and Reforms Mid-Session Review FY 2018 Analytical Perspectives Appendix Historical Tables Supplemental Materials Fact Sheets Supplementals, Amendments, and Releases Past President’s Budgets See also Politico – “The White House released… Continue Reading

Economist – Democracy Index 2016 – US downgraded to “flawed democracy”

The Economist Intelligence Unit: “According to the 2016 Democracy Index almost one-half of the world’s countries can be considered to be democracies of some sort, but the number of “full democracies” has declined from 20 in 2015 to 19 in 2016. The US has been downgraded from a “full democracy” to a “flawed democracy” because… Continue Reading