State of the Union or 2016 stump speech? That's what Washington's financial regulatory watchers are wondering as they review the tax policy plan President Obama will formally unveil on Tuesday during his State of the Union address. Read more.
Fact Sheet: Compromise To Fix Swaps Push-Out Rule Will Boost U.S. Economy And Improve Financial Stability
A proposed compromise on the treatment of financial derivatives amends a rule that threatens financial stability and imposes costs on the real economy.
Big U.S. banks' ability to borrow at lower rates than smaller competitors has eroded since the 2007-2009 meltdown but could return in a crisis, a U.S. official said, previewing a highly anticipated report on whether banks remain "too big to fail." Read more
…The industry liked much of what it saw in the report, contending that it showed that the overhaul since the crisis, particularly the Dodd-Frank Act of 2010, had done what is was supposed to do: strengthen banks and reduce the likelihood of bailouts. “The G.A.O.’s findings show the impact of the numerous legislative, regulatory and [...]
TTIP isn’t a big issue on the radar in Washington, but it really should be if we care about U.S. jobs. The TTIP - along with the negotiation of a U.S.-China Bilateral Investment Treaty - offers a massive opportunity for the U.S. economy by increasing market opportunities for U.S.-based financial services firms. Defying the “Great Recession,” America’s export of services have grown approximately 30% since 2008, and, according to the International Trade Administration, now support almost 3 million U.S. jobs. Unfortunately, without a shift in approach on regulatory issues, the huge market access opportunities in Europe that the Obama Administration says it still seeking in the TTIP talks may remain elusive.
There has been much debate about the size of large financial institutions and subsequent claims by critics that U.S. banks are unnecessarily large, growing disproportionately, and should be forced to shrink. Today, SNL Financial released an analysis showing that the largest U.S. banks are not so large compared to their international peers. The analysis found that there is currently only one U.S. bank in the top 10 globally, and only three in the top 20. The top 4 spots being held by Chinese banks. Through their size, global reach, and diverse product and services lines, large U.S. financial institutions are critical to serving the financial needs of large U.S.-based corporations that employ millions of American, and to which millions of other small businesses across America sell products and services.
Given the importance of the U.S.-China relationship to both nations, as well as to the global economy, U.S. officials should continue to push for greater financial sector modernization and market opening reforms in China, in order to level the playing field for U.S. businesses and consumers... The Engage China Coalition, a group of 12 U.S. financial services trade associations chaired by the Financial Services Forum, described a number of these barriers in a recent a letter to Secretary Lew. Financial services modernization and market-opening reforms in China will help transform China’s economy into a more services-based, consumer-driven economy, which in turn will greatly contribute to greater economic growth and job creation here in America.
The right question for policymakers and voters isn’t “are banks bigger or smaller?” but rather “have we addressed the problem of ‘Too Big to Fail?’ – i.e. the impression that taxpayers will be forced to step in and support certain financial sector firms in a future crisis. The right way to assess whether or not any new law, regulation, or policy is working is to examine the period following enactment and compare it to other periods. Looking at the changes in financial sector concentration in the four years following the passage of the Dodd-Frank Act in 2010, the facts look very different. The largest banks have grown much more slowly than their smaller peers, and therefore have been losing market share, resulting in a less concentrated financial sector.
“Allowing financial holding companies to continue to conduct physical commodities activities, all while applying the right safeguards, is a critically important step toward ensuring the global competitiveness and openness of our American markets,” said Rob Nichols, President and CEO of the Financial Services Forum. “And that is why bank customers across various industries have voiced their strong support for allowing banks to continue to operate in this space.”