International Finance Discussion Papers

<p>The Dodd-Frank Act of 2010 is the keystone policy response directed at reforming U.S. financial system activities and oversight in the wake of the 2007-2009 financial crisis. The United States also has financial system reform policy commitments in the international arena including in particular by virtue of its membership in the G20. This analysis considers U.S. policy initiatives related to a core dimension of financial system reform: risks posed by systemically important financial institutions (SIFIs). It provides a comparison of SIFI policy initiatives and timetables under both the Dodd-Frank Act and the G20 agenda as reflected in the ongoing work plan of the Financial Stability Board (FSB) and poses the question Are U.S. domestic and international financial system reform commitments in sync? While finding that fundamentally the answer is yes the detailed comparison yields two caveats with potential policy implications. First the two agendas differ in their relative emphasis on the coverage of both banks and nonbanks. The G20/FSB focus at least over the near-term is bank-centric compared with the Dodd-Frank Act which consistently addresses both bank and nonbank financial firms. Second implementation of Dodd-Frank Act provisions is subject to long-established U.S. law mandating that there be sufficient opportunity for public input into the rulemaking process whereas the G20/FSB process has been less systematic and transparent on public consultation and feedback. The lesser emphasis on transparency and public input characterizing the G20/FSB policy development process may be attributable in part to the somewhat more rapid pace of the G20/FSB agenda relative to corresponding Dodd-Frank Act timelines. These observations may be relevant to the current debate over the speed and scope of Dodd-Frank Act implementation measures and to the discussion about the future international competitiveness of U.S. banks and nonbank financial firms.</p><p>This work has been selected by scholars as being culturally important and is part of the knowledge base of civilization as we know it. This work was reproduced from the original artifact and remains as true to the original work as possible. Therefore you will see the original copyright references library stamps (as most of these works have been housed in our most important libraries around the world) and other notations in the work.</p><p>This work is in the public domain in the United States of America and possibly other nations. Within the United States you may freely copy and distribute this work as no entity (individual or corporate) has a copyright on the body of the work.</p><p>As a reproduction of a historical artifact this work may contain missing or blurred pages poor pictures errant marks etc. Scholars believe and we concur that this work is important enough to be preserved reproduced and made generally available to the public. We appreciate your support of the preservation process and thank you for being an important part of keeping this knowledge alive and relevant.</p>