In our latest article in The Hill, my good friend Thomas Vartanian and I outline five key challenges standing in the way of financial stability in the US banking system:
1. The Financial Stability Oversight Council is extremely poorly designed by Congress and needs to be either eliminated or significantly strengthened.
2. FDIC-insured banks continue to be the primary focus of our regulatory system while they are no longer the dominant force in the financial marketplace.
3. We are not supervising unscrupulous crypto and digital asset businesses from soliciting and misusing consumer funds.
4. Deposit insurance is out of date and badly needs reforms.
5. Supervision and regulation needs to be more cooperative and less adversarial.
These challenges are manageable if we acknowledge them and stop allowing partisan politics to dictate economic principles. That may be a lot to ask of the system these days, but it is the only way we can avoid the next financial storm on the horizon.
Read the full article here.