After the Financial Crisis: International and Domestic Regulatory Responses

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After the Financial CrisisInternational and
Domestic Regulatory Responses

• David Andrew Singer, Ph.D.
• Department of Political Science
• MIT

November 24, 2009
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Current Account Balance ( global GDP)
Source IMF World Economic Outlook, 2008
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Yield on 10-year U.S. Treasury Bond, 2000-2009
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Nominal and Real Short-term Interest Rates,
2000-2008
Source IMF World Economic Outlook, 2008
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IMF Global Financial Stability Report, Oct. 2008
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U.S. Regulation Many Agencies, Many Holes

• U.S. has a highly fragmented regulatory system
• Bank regulators Federal Reserve Comptroller
  Office of Thrift Supervision (OTS) FDIC NCUA
  and 50 separate state agencies
• Securities regulators SEC CFTC
• Insurance regulators 50 separate regulators, no
  national regulator
• Result overlapping jurisdictions holes in
  supervision
• Example OTS was AIGs holding company supervisor

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Regulatory Reform the Road Ahead

• US Regulation
• Prediction modest reform
• International regulation
• Prediction considerable challenges due to
  expansion of governing bodies

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Thank you!