Abby M. McCloskey is the program director of economic policy at the American Enterprise Institute (AEI) where she disseminates the work of AEI’s economic policy team. McCloskey also studies and writes about various financial services and economic mobility policy issues.
Immediately before joining AEI, McCloskey was director of research at the Financial Services Roundtable where she worked on financial regulatory reform, including Dodd-Frank and Basel III. McCloskey has also worked for US Senator Richard Shelby, and for the Mercatus Center as a Charles Koch Institute associate. While at Mercatus, she created and hosted a video series on financial markets issues.
The power of bank living wills lies beyond what's written down on paper. Living wills are a gateway for regulators to change the company itself. If companies' living wills are not to regulators' liking, regulators can require the institutions to restructure, raise capital, reduce leverage, divest or downsize.
Today marks the four-year anniversary of the Dodd-Frank Act. The financial regulatory bureaucracy has swelled to historic proportions and many of Dodd-Frank’s new rules are restricting credit and economic growth with questionable benefits to safety and soundness. So far, regulators have done little to consider the economic impact of their actions. But Congress soon may force them to.
Want more accountability of Wall Street? Start with their regulators. Financial regulators are rewriting the rules of finance with little to no consideration about how their actions will impact the economy. The result is unnecessary and potentially serious costs on consumers, investors, and economic growth.
Because federal financial regulators are structured as independent regulatory agencies, they generally are not required to conduct economic analysis of their rules, consider reasonable alternatives, or disclose details to the public. Statutory economic analysis of new rulemakings would improve transparency and increase the effectiveness of rule writing at the financial regulatory agencies.
Obamacare exchanges have reached the administration's goal of seven million. But how can we tell who was previously uninsured? Are the young and healthy signed up? And with all of the changes made to the Affordable Care Act, can we truly trust it? AEI program director of economic policy Abby McCloskey explains that strides have been made, but the finish line is still in the distance.