American Banker’s Editor at Large, Barbara Rehm, Notes Correction by Petrou

Correction to last week’s column: Dodd-Frank does in fact supply new tools to stop products or practices while they are still going gangbusters. Under the law, the FSOC may recommend that the regulatory agencies “apply new or heightened standards and safeguards … for a financial activity or practice … if the council determines that the conduct, scope, nature, size, scale, concentration or interconnectedness of such activity or practice could create or increase the risk of significant liquidity, credit, or other problems spreading among bank holding companies and nonbank financial companies, financial markets of the United States, or low-income, minority, or underserved communities.” I stand corrected and thank Karen Shaw Petrou of Federal Financial Analytics for pointing out my error.

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