The CFA Institute and the Pew Charitable Trusts have
joined with former FDIC Chair Sheila Bair to launch the Systemic Risk Council
to increase the accountability of the Financial Stability Oversight Council created
by Title I of the Dodd-Frank Act. The Systemic Risk Council expects to
evaluate and provide commentary on the existing efforts of regulators to design
and implement a credible and globally-coordinated systemic risk oversight
function. Council activities will include reports and commentary to the
FSOC and its member regulators, which includes the SEC, the CFTC and the Fed,
as they adopt regulations to prevent the type of severe financial disruptions
which occurred in 2008. According to Chairman Bair, concerns over the slow progress of regulators prompted creation of the SRC to monitor and evaluate the activities of entities, like the FSOC and the Office of Financial Research, with a Congressional mandate to implement Dodd-Frank provisions related to systemic risk.
Paul Volcker, former Fed Chair, will serve as senior adviser
to the Council. In addition to Chairman Bair, other SRC members will include
former CFTC Chair Brooksley Born, former SEC Chair William Donaldson, former
SEC Commissioner Harvey Goldschmid, and former US Senators Bill Bradley (D-NJ),
Chuck Hagel (R-NE) and Alan Simpson (R-WY).