The Word of the Day

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In the Treasury Department's white paper on its financial reform plans, the word "robust" is used 47 times in 101 pages.  Some choice examples:

·         [our plan will] promote robust supervision and regulation of financial firms. 

·         [financial holding companies] should be subject to robust consolidated supervision and regulation, regardless of whether the firm owns an insured depository institution.

·         [the SEC] should require robust reporting by issuers of asset backed securities.

·         [the SEC] should promote robust policies and procedures that manage and disclose conflicts of interest [for credit rating agencies].

·         The CFPA [consumer financial protection agency] should be an independent agency with stable, robust funding.

·         Regulators will need to require that CCPs [central counterparties] impose robust margin requirements

·         The CFPA should also establish a robust research and statistics department


It is too early to tell whether the new regulatory regime will be effective, efficient, and equitable.  But it will certainly be robust!


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