Plumbing of the Financial System in GOP Sights
By John Heltman
When the GOP begins its roll back of the Dodd-Frank Act early next year, some observers are questioning whether plans to strip away regulators’ powers to designate nonbanks as systemically risky might be going too far. One big concern is what happens to financial market utilities, the first firms to be targeted as systemically important financial institutions, which are now directly supervised by the Federal Reserve Board. “This is a critical question for the stability for the U.S. and global financial system, but no one has really thought about it,” said Karen Shaw Petrou, managing partner with Federal Financial Analytics.