With the recent publication of its final rule, the federal government's Financial Stability Oversight Council is now in position to designate certain nonbank firms as "systemically important financial institutions" (SIFIs). There is probably no aspect of the Dodd-Frank Act that will have more damaging effects on competition in the U.S. financial system.

Will we recover, unbridle ourselves of debt, innovate, pay for our national security? Or, is China fated to become number one, leaving us to live in a Chinese world?

During two closed sessions before the luncheon, committee members discussed the latest in financial regulation issues. At a luncheon briefing following these sessions, SFRC members gave several statements and answered questions.

On April 5, 2012, the President signed into law the Jumpstart Our Business Startups (JOBS) Act, which passed by a large bipartisan majority in the Congress. The Act is designed to facilitate the equity funding of new companies. Recent research has documented that from 1980 through the 2008-09 recession new companies have been main drivers of job creation in the United States. 

A new report by the American Enterprise Institute (AEI) and the Institute for the Study of War (ISW) argues that one of the greatest mistakes the United States can make is to imagine that Iranian activities in a given arena--the nuclear program, for example--are isolated from Iranian undertakings in another. The report examines those other areas

Property-and-casualty insurance companies will almost inevitably fall victim to the proposed "systemically significant" designation and regulation.

The Shadow FinancialRegulatory Committeedisagrees with an SEC proposal toprohibit investment management companies from directing brokerage to particular brokerage houses.

Longstanding policies that were intended to promote confidence in the independence of regulatory decision-making have now been wiped away by the Dodd-Frank act, which has in effect placed all the financial regulators under the direction of the Treasury secretary.