Systemic Risk is on the Agenda!

In the first sign that Congress may yet employ big-picture thinking about regulatory reform, the House Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises announced that on Thursday it will begin hearings on systemic risk and how to "improve the ability of the government to prevent private sector activities from putting at risk the stability of the U.S. economy." The subcommittee's press release goes on to say that: "The hearing will assist the Financial Services Committee in crafting legislation to create a systemic risk regulator for the financial services industry."