Designation of Systemically Important Financial Institutions, Living Wills and Enhanced Prudential Regulation One Year Later: A Question of Balance

July 13, 2011
Congress passed the Dodd-Frank Act one year ago to reduce or eliminate the risks that led to the financial crisis. Today, there is growing concern that the laser-like focus on risk reduction was not properly balanced by an appreciation of the costs of such regulation, including its potential impact on economic growth in the United States. This update examines the potential costs and burdens of compliance with regard to credit risk retention requirements, the designation of systemically important financial institutions, capital requirements and living wills.