IDEAS home Printed from https://ideas.repec.org/h/wsi/wschap/9789813236592_0010.html
   My bibliography  Save this book chapter

The Shadow Financial Regulatory Committee’s Views on Systemic and Payments System Risks

In: Innovative Federal Reserve Policies During the Great Financial Crisis

Author

Listed:
  • Robert A. Eisenbeis

Abstract

This chapter reviews the evolution of the Shadow Financial Regulatory Committee’s statements on payment system and systemic risk. Six major themes emerge. First, from the outset, the Committee has argued against forbearance and taxpayer bailouts and instead advocated early regulatory intervention and prompt corrective action to force recognizing losses and recapitalizing troubled institutions. Second, when taxpayer bailouts take place there is a pressing need to protect taxpayer interests. Third, the Committee favored regulatory simplicity over complexity when it comes to structuring capital requirements and macroprudential policies. Fourth, the committee favored market price mechanisms when it comes to structuring capital constraints. Fifth, market mechanisms and prices should also be relied upon to monitor risk. Finally, the Committee urged the Fed to modernize how it implements monetary policy and cease its reliance upon the primary dealer system as the main conduit for such policy.

Suggested Citation

  • Robert A. Eisenbeis, 2018. "The Shadow Financial Regulatory Committee’s Views on Systemic and Payments System Risks," World Scientific Book Chapters, in: Douglas D Evanoff & George G Kaufman & A G Malliaris (ed.), Innovative Federal Reserve Policies During the Great Financial Crisis, chapter 10, pages 285-302, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789813236592_0010
    as

    Download full text from publisher

    File URL: https://www.worldscientific.com/doi/pdf/10.1142/9789813236592_0010
    Download Restriction: Ebook Access is available upon purchase.
    File URL: https://www.worldscientific.com/doi/abs/10.1142/9789813236592_0010
    Download Restriction: Ebook Access is available upon purchase.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:wschap:9789813236592_0010. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscientific.com/page/worldscibooks .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.