Climate Risk Disclosures & Practices: Highlighting the Need for a Standardized Regulatory Disclosure Framework to Weather the Impacts of Climate Change on Financial Markets

The following is the executive summary of a new report from the Climate Risk Disclosure Lab that highlights the need for a thorough, robust, and mandatory disclosure framework for climate-related information. The report exposes the failure of U.S. regulators to properly incorporate climate change into their mandates and assesses the threats that the vacuum of […]

The Heat Is On: U.S. Regulators Facing Increasing Pressure to Enhance Climate Disclosures

Hurricane Delta’s landfall in Louisiana last week marked the tenth named storm to hit the United States this year, breaking the record set in 1916. Records, of the ignominious sort, have also been set on the West Coast. California has experienced six of its twenty largest wildfires this year, and on August 16th, Death Valley […]

Pandemic Bailout of the Fossil Fuel Industry Highlights Financial Sector Risks

This post is the latest in our special issue: “Climate Change and Financial Markets – Risk, Regulation, and Innovation.” To learn more about the special issue and the work of the Global Financial Markets Center around climate change and financial markets, please read the special issue’s introduction here. And to review all The FinReg Blog […]

Designing a Prudential Supervisory Framework for Climate Change in the U.S.

This post is the latest in our special issue: “Climate Change and Financial Markets – Risk, Regulation, and Innovation.” To learn more about the special issue and the work of the Global Financial Markets Center around climate change and financial markets, please read the special issue’s introduction here. And to review all The FinReg Blog […]

Comments to the Climate-Related Market Risk Subcommittee under the Market Risk Advisory Committee (MRAC) of the Commodity Futures Trading Commission (CFTC)

Courtesy of Lawrence Baxter, Mercy B. DeMenno,  Lee Reiners, and Joe Smith The following letter was submitted by the Global Financial Markets Center on May 9, 2020, to the Commodity Futures Trading Commission (CFTC) in response to the CFTC’s request for public comment on topics and issues being addressed by the Climate-Related Market Risk Subcommittee […]

Rolling Back Dodd-Frank: One Bite at a Time

The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) ushered in the most substantial changes to the U.S. financial system since the Great Depression. The statute was 848 pages long and imposed an estimated 27,278 new restrictions—equal to 74 percent of the restrictions created by all other laws passed during the Obama administration combined! […]

The Rise of Rent-a-Charter: Examining New Risks Behind Bank-Fintech Partnerships

Courtesy of Joseph Caputo and Lee Reiners The emergence of fintech lending – also called marketplace lending or peer-to-peer lending – and its interplay with the United States’ fragmented financial regulatory system, has given rise to a niche market of mid-size banks that cater to nonbank fintech lenders. While these banks may provide their fintech […]

Danske Bank Money Laundering Case Study

Courtesy of Lee Reiners and Joseph A. Smith Jr. This case study draws primarily—and in some instances quotes verbatim—from the “Report on the Non-Resident Portfolio at Danske Bank’s Estonian Branch” prepared for the Bank on September 19, 2018, by the law firm Bruun & Hjejle.[1] Additional details are derived from other sources, including Danske Bank […]

A New Source of Systemic Risk: Cloud Service Providers

Courtesy of David Fratto and Lee Reiners Last week’s announcement that a hacker accessed the personal information of approximately 106 million Capital One card customers and applicants has cast fresh light on financial institutions increasing reliance on the cloud. The hacker, a former employee of Amazon Web Services Inc., allegedly breached Capital One’s firewalls to […]