Providing informed insights on the financial markets

Managing and regulating risks in the financial markets

Financial Risk and Regulation explores a broad range of topics in finance, financial regulation, compliance, and risk management. These include, among many others, regulatory arbitrage, risks created by a firm’s business model, conflicts of interest, risk appetite as the governing metric in risk management, the distinction between risk and uncertainty, and model risk and model risk management. My understanding of these and other subjects constantly evolves and deepens as I teach them and learn from my students at UCLA and the University of Chicago. Also included are posts from my previous blog, Compliance Today: A Blog on Financial Institution Compliance, hosted by the Chicago-Kent College of Law. The final post for that blog is dated December 4, 2017.

Financial CHOICE Act v. 2: Reducing Protections Against Systemic Risk

The nearly 600-page Republican bill to deregulate the financial markets moved forward in the House earlier this month, exiting the ...
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Whistleblowing Update: Tone Deaf at the Top and Regulatory Lapses

Despite the fact (or perhaps due to the fact) that whistleblowing can be a very effective policing mechanism against wrongdoing, ...
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Prescriptive, “Rules-Based” Regulation is Key to Enhancing Cybersecurity in Financial Institutions

There is much debate in the compliance community about the virtues and drawbacks of a "principles-based" versus a "rules-based" regulatory ...
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Governor Tarullo’s Departure Will Create a Vacuum in Bank Regulation: How Big Will it Be?

Governor Daniel Tarullo’s resignation as governor of the Federal Reserve Board has important implications for future bank regulation and supervision. ...
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Implementing President Trump’s Dodd-Frank Directive May Lead to More Bailouts, Not Fewer, in the Next Crisis

Last Friday, February 3, nearly two weeks into his term, President Trump issued a directive to revamp financial market regulation, aimed ...
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Court Rulings on SEC’s In-house Courts May Accelerate Deregulatory Trend But Compliance Professionals Should Not be Complacent

Two recent federal appeals courts take opposite positions on the constitutionality of how the SEC hires its administrative law judges ...
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Wells Fargo’s fraudulent account openings: What are the (initial) risk management lessons?

It is intriguing that the intense level of media attention and Congressional furor over Wells Fargo’s fraudulent account opening scandal ...
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Wasting a Crisis: Why Securities Regulation Fails

This is a book review of Paul Mahoney's new book, Wasting a Crisis:Why Securities Regulation Fails, Chicago: The University of Chicago ...
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