Shadow Financial Regulatory Committee
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About This Event

 

 

 

Event Summary

The Shadow Financial Regulatory Committee (SFRC), an independent group of experts sponsored by AEI, released its latest findings at a press luncheon on Monday. Despite the Securities and Exchange Commission's abandonment of Chairman Mary Shapiro's proposed regulations on money market mutual funds, SFRC members voiced their support for Shapiro's efforts and suggested additional regulations. Franklin Edwards of Columbia University outlined the SFRC's proposed regulatory reforms and discussed the impacts of accepting and abandoning such reforms.

Robert Eisenbeis of Cumberland Advisors then presented the SFRC's proposed London Inter-Bank Offered Rate (LIBOR) reforms in light of Barclays Bank's recent settlement over the manipulation of its LIBOR submissions to the British Bankers' Association. Eisenbeis emphasized that the manipulation of the LIBOR index has gone on for too long, stressing that the banking industry should take a leading role in creating a credible index.

Finally, Cathy Schrand of the University of Pennsylvania discussed how the Dodd-Frank Act of 2010 restricts the Securities and Exchange Commission's authority by mandating disclosures that have no clear correlation to either financial reform or consumer protection. Schrand concluded that such disclosures hurt private companies in that the benefits of the disclosures fail to outweigh their costs.
-- Emily Rapp

Event Description

The Shadow Financial Regulatory Committee (SFRC) is a group of publicly recognized independent experts on the financial services industry — including experts in banking, insurance and securities — who meet regularly to study and critique regulatory policies affecting this sector of the economy. During closed sessions before the luncheon, committee members will discuss the latest in financial regulation issues, including recent Libor abuse, the application of fair value accounting to bank balance sheets, government-sponsored enterprise and Securities Exchange Commission disclosure issues, the Dodd-Frank Act and the impacts of amending Glass-Steagall, breaking up large banks and derivatives regulation. In a briefing following the sessions, SFRC members will present the adopted policy statements and answer related questions.

If you are unable to attend, we welcome you to watch the event live on this page. Full video will be posted within 24 hours.

Agenda

12:00 PM
Registration and Luncheon

12:30 PM
Press Briefing
Panelists:
Richard J. Herring, (co-chairman), University of Pennsylvania
George G. Kaufman, (co-chairman), Loyola University Chicago
Charles W. Calomiris, AEI and Columbia University
Kenneth W. Dam, University of Chicago Law School and Brookings Institution
Franklin Edwards, Columbia University
Robert A. Eisenbeis, Cumberland Advisors
Catherine Schrand, University of Pennsylvania
Kenneth E. Scott, Stanford Law School
Chester Spatt, Carnegie Mellon University
Peter J. Wallison, AEI

1:30 PM
Adjournment

Event Contact Information

For more information, please contact Emily Rapp at Emily.Rapp@aei.org, 202.419.5212

Media Contact Information

For media inquiries, please contact Véronique Rodman at vrodman@aei.org, 202.862.4871.

Charles W. Calomiris is a visiting scholar at AEI and co-director of AEI's program on financial market deregulation. He is the Henry Kaufman Professor of Financial Institutions at Columbia Business School and a research associate at the National Bureau of Economic Research. At AEI, Calomiris studies banking regulation, corporate finance and monetary economics. His most recent books are "China's Financial Transition at a Crossroads" (Columbia University Press, 2007) and "Sustaining India's Growth Miracle" (Columbia University Press, 2008).

Kenneth W. Dam is the Max Pam Professor Emeritus of American and Foreign Law and a senior lecturer at the University of Chicago Law School. He served as deputy secretary in the U.S. Department of the Treasury from 2001 to 2003 and at the U.S. Department of State from 1982 to 1985. Previously, he was executive director of the Council on Economic Policy and assistant director for national security and international policy at the Office of Management and Budget. Dam's work in the private sector includes serving as IBM's vice president for law and external relations and as president and CEO of the United Way of America. He is a member of the board of the Brookings Institution and serves as a nonresident senior fellow of that organization. Dam is also a board member of the Committee for Economic Development and was formerly chairman of the German-American Academic Council. He has been a board member of numerous nonprofit institutions, and he served for 13 years on the board of Alcoa.

Franklin Edwards is the Arthur F. Burns Chair in Free and Competitive Enterprise and a professor of finance and economics at the Columbia Business School. He has served as a visiting scholar at AEI and senior economist at the Office of the Comptroller of the Currency. His research interests include hedge funds, corporate governance, financial markets and regulation and derivatives markets. Edwards is the author of "The New Finance: Regulation and Financial Stability" and the textbook "Futures and Options." He has also authored numerous articles dealing with financial institutions, hedge funds, corporate governance, derivatives markets, energy markets and financial regulation.

Robert A. Eisenbeis
is the chief monetary economist at Cumberland Advisors, where he advises the company's asset managers on U.S. economic and financial market developments and their implications for investment and trading strategies. Eisenbeis was formerly executive vice president and director of research at the Federal Reserve Bank of Atlanta, where he advised the bank's president on monetary policy for Federal Open Market Committee deliberations and was in charge of basic research and policy analysis. Previously, he was the Wachovia Professor of Banking at the Kenan-Flagler School of Business at the University of North Carolina at Chapel Hill. He has also held senior positions at the Federal Reserve Board and Federal Deposit Insurance Corporation. Eisenbeis is a member of the Financial Economists Roundtable and a fellow of the National Association of Business Economics.

Richard J. Herring is a co-chair of the Shadow Financial Regulatory Committee as well as the Jacob Safra Professor of International Banking and the co-director of the Wharton Financial Institutions Center at the Wharton School of the University of Pennsylvania, where he has worked since 1972. His research areas include international banking, international finance and money and banking. He is the co-editor of the Brookings-Wharton Papers on Financial Services, published by the Brookings Institution Press, and is on the editorial board of numerous journals. Herring has been a trustee of Scudder New York Funds since 1990.

George G. Kaufman is a co-chair of the Shadow Financial Regulatory Committee and the John F. Smith Jr. Professor of Finance and Economics at Loyola University Chicago, where he has worked since 1981. Previously, he was a visiting scholar and the acting director of research at the Office of the Comptroller of the Currency and was the deputy to the assistant secretary for economic policy at the U.S. Treasury Department. He has also worked at the Federal Reserve Bank of Chicago in numerous positions, including as senior economist and assistant vice president. During his career, Kaufman has taught at the University of California–Berkeley, Stanford University, the University of Oregon and the University of Southern California. He is the executive director of the Financial Economists Roundtable, the co-editor of the Journal of Financial Stability, the founding editor of the Journal of Financial Services Research and the editor of Research in Financial Services.

Catherine Schrand is the John C. Hower Professor of Accounting at the Wharton School of the University of Pennsylvania. She has been actively involved in the accounting standard-setting process through her past service on the Financial Accounting Standards Committee of the American Accounting Association (AAA) and through her involvement with the AAA/Financial Accounting Standards Board Financial Reporting Issues Conference. Her research focuses on risk management and disclosure and has been published in top-tier academic journals including the Journal of Accounting and Economics, the Accounting Review, the Journal of Finance, the Journal of Financial Economics, Review of Accounting Studies and Contemporary Accounting Research. Schrand is an associate editor of the Journal of Accounting and Economics, the Journal of Accounting Research and the Journal of Financial Services Research. Schrand is the author of "Earnings Quality" (Research Foundation of CFA Institute, 2004, with Patricia Dechow) and "Understanding Earnings Quality: A Review of the Proxies, Their Determinants and Their Consequences" (Journal of Accounting and Economics, 2010, with Weili Ge and Dechow).

Kenneth E. Scott is the Ralph M. Parsons Professor of Law and Business Emeritus at Stanford Law School. He is a leading scholar in the fields of corporate finance reform and corporate governance and is well versed in federal deposit insurance issues and federal banking regulation. As a senior research fellow at the Hoover Institution, he concentrates on legislative and policy developments related to comparative corporate governance, bank regulation and deposit insurance reform. Scott has extensive consulting experience, including turns with the World Bank, the Federal Deposit Insurance Corporation and the Resolution Trust Corporation, and, most recently, the National Association of Securities Dealers. He is also a member of the Financial Economists Roundtable and the State Bar of California's Financial Institutions Committee. Before joining the Stanford Law School faculty in 1968, Scott was general counsel to the Federal Home Loan Bank Board and chief deputy savings and loan commissioner of California.

Chester Spatt is the Kenneth B. and Pamela R. Dunn Professor of Finance and the director of the Center for Financial Markets at the Tepper School of Business at Carnegie Mellon University. He has been at Carnegie Mellon since 1979. From 2004 to 2007, Spatt served as the chief economist and the director of the Office of Economic Analysis for the U.S. Securities and Exchange Commission. He has researched and written extensively on market structure, taxation and asset allocations, pricing and valuation and the impact of information in the marketplace. Additionally, he is a member of the Financial Economists Roundtable and a fellow at the Teachers Insurance and Annuity Association and College Retirement Equities Fund. Spatt has been on the editorial board of numerous academic journals, including the Journal of Financial Markets, Real Estate Economics and the Journal of Financial and Quantitative Analysis. He was a founder and the second executive editor of the Review of Financial Studies, and he served as a member of the economic advisory board for NASDAQ from 2000 to 2002.

Peter J. Wallison holds the Arthur F. Burns Chair in Financial Policy Studies at AEI, where he co-directs the program on financial market studies. He is also a co-chair of the Pew Financial Reform Task Force and a member of the congressionally authorized Financial Crisis Inquiry Commission. Wallison previously practiced banking, corporate and financial law at Gibson, Dunn & Crutcher LLP in New York and Washington, D.C. In 1986 and 1987, Wallison was White House counsel to President Ronald Reagan. From 1981 to 1985, he was general counsel of the U.S. Treasury Department, where he played a significant role in the development of the Reagan administration's proposals for deregulation in the financial services industry. He also served as general counsel to the Depository Institutions Deregulation Committee and participated in the Treasury Department's efforts to deal with the debt held by less-developed countries. Between 1972 and 1976, Wallison was special assistant to New York Governor Nelson A. Rockefeller and, subsequently, counsel to Rockefeller when he was vice president of the U.S.

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AEI Participants

 

Charles W.
Calomiris
  • Charles W. Calomiris is the Henry Kaufman Professor of Financial Institutions at Columbia Business School. He is also a research associate at the National Bureau of Economic Research, a member of the Shadow Financial Regulatory Committee and the Financial Economists Roundtable, and the coordinator of the Bank Performance and the Economy program at the Center for Financial Research at the Federal Deposit Insurance Corporation. Until 2007, he was the co-director of AEI's Financial Deregulation Project. His research at AEI spanned several areas, from banking and corporate finance to financial history and monetary economics. Calomiris also served on the 2000 International Financial Institution Advisory Commission. Known as the Meltzer Commission, this congressionally mandated group recommended specific reforms of the International Monetary Fund, the World Bank, the regional development banks and the World Trade Organization to the U.S. government.
  • Phone: 2128548748
    Email: ccalomiris@aei.org

 

Peter J.
Wallison
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