Free With Registration: Translating ‘Macro-Prudential Supervision’ Principles Into Law
Bradley K. Sabel, a partner at Shearman & Sterling, and Gregg L. Rozansky, counsel at the firm, write: Sparked by the recent financial crisis, the push to incorporate a “macro-prudential” or “systemic” component into the U.S. financial regulatory framework is being spurred on by both populist resentment over the use of taxpayer money to bail out institutions seen as “too big to fail” and cutting edge studies by financial economists within academia, think tanks and central banks. Putting theory into practice, however, will be a daunting challenge given the dynamics of the financial system and the fact that there is no proven set of guidelines to follow in most areas.
