How foreigners became America’s financial regulators
At a hearing before the House Financial Services Committee on Tuesday, Treasury Secretary Jack Lew denied that the decisions of the Financial Stability Board—an international body of financial...
View ArticleTransparency on FSOC designations and its relations with the FSB
Chairman Shelby, Ranking Member Brown and members of the Senate Banking Committee:Thank you for the opportunity to submit written testimony for this hearing.My name is Peter J. Wallison. I am the...
View ArticleLending not a good business to be in right in now: Wallison on Fox...
Arthur F. Burns Fellow in Financial Policy Studies Peter Wallison discusses General Electric's decision to sell its financial services unit, GE Capital, on Fox Business' 'After The Bell.'
View ArticleRoadkill in the Fed’s race to regulate shadow banking
General Electric’s withdrawal from the financial-services business is being hailed in Washington as a victory over “shadow banking.” This is akin to celebrating the criminal-justice system when a...
View ArticleWarren’s Wall Street reforms would just make banks riskier
Sen. Elizabeth Warren has received a lot of attention for her new plan to complete the work of the Dodd-Frank Act. This plan would sow the financial services ground with salt as Rome did to Carthage,...
View ArticleTreasury won’t — or can’t — answer Hensarling’s questions on the FSB
Under the Constitution’s separation of powers, the US government can function effectively only if the executive branch responds to questions from Congress. When the executive does not do this, or is...
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The Financial Stability Board, the Financial Stability Oversight Council and...
ABSTRACT: Section 113 of the Dodd-Frank Act provides the Financial Stability Oversight Council (FSOC) (and thus the Fed) with authority to designate firms as Systemically Important Financial...
View ArticleMetLife calls the regulators’ bluff
For years, Congress has been trying to determine whether the Financial Stability Oversight Council is recognizing legitimate risks to the economy when it designates large financial firms as...
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Restoring Glass-Steagall would increase bank failures and the costs to taxpayers
Senators Elizabeth Warren and John McCain recently reintroduced their legislation to restore Glass-Steagall. This idea reveals an appalling lack of understanding about the role of banks in today’s...
View ArticleDodd-Frank turns 5
On the 5 year anniversary of Dodd-Frank, which imposed massive new regulations on the US financial system, AEI economic scholars weigh in on the impact the legislation has had.Former director of the...
View ArticleDodd-Frank’s unhappy fifth birthday: Remarks from Chairman Jeb Hensarling
Event SummaryOn July 21, the fifth birthday of the Dodd-Frank Act, AEI hosted Rep. Jeb Hensarling (R-TX), chairman of the House Financial Services Committee, and a panel of regulatory experts to...
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The Dodd-Frank Act five years later: Are we more prosperous?
ABSTRACT: The administration’s refusal thus far to admit that the Dodd-Frank Act may be responsible for what could be a future financial catastrophe, must be seen as a wholly political effort to defend...
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The slow economic recovery explained
The Fed’s uncertainty about when it will begin to raise interest rates has rekindled interest in the US economy’s historically slow recovery from the 2008 financial crisis and the sharp recession that...
View ArticleDodd-Frank’s drag on the economy
Last week’s disappointing September jobs report and the equally disappointing revision of August’s initially positive numbers indicate a steady downward trend in the US economy.AEI scholar Peter...
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In his new memoir, Ben Bernanke is wrong about the fall of Lehman
The ex-Fed Chair could have saved the bank and possibly averted the financial catastrophe that followed, but didn’t.In his just released memoir, The Courage to Act, former Fed chairman Ben Bernanke is...
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Bernanke and the slow-growth crew
News that the U.S. economy grew only 1.5% in the third quarter again raises the question: Why has the recovery from the recession been so historically weak?New York Federal Reserve President Timothy...
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Is the Dodd-Frank Act responsible for the economy’s slow recovery from the...
ABSTRACT: Since the financial crisis of 2008 and the ensuing recession, the U.S. economy has experienced a historically slow recovery. This paper argues that the reason for the slow recovery is the...
View ArticleHillary Clinton and the fact-checkers
While the media fact-checkers and reporters are busily hacking away at whether Ben Carson was actually awarded a scholarship to attend West Point 40 years ago, an outright falsehood in a Hillary...
View ArticleThe FORM Act will help the market — and the economy
Controversial legislation about how the Federal Reserve sets monetary policy could reach the floor of the House of Representatives this week, and for those of us who are not specialists in monetary...
View ArticleFSOC’s authority needs reevaluation
In a statement submitted for the record today at 9:15am before the House Financial Services Committee, AEI scholar Peter J. Wallison discusses the designation of nonbank financial institutions as...
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