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"This is an issue that raises systemic risk," Mr. Dodd said, adding that he had called for hearings on the matter.
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For example, I have mentioned the junk bond market several times, but not because this market is necessarily the most important venue for the sort of risk-taking that is likely to raise systemic concerns.
"This acquisition poses a threat to taxpayers, and raises serious antitrust and systemic risk concerns".
Angry at The System for not recognizing systemic risk?
Roger Lowenstein raises the question: Should S.E.C. regulators concentrate on insider-trader cases, which are relatively insignificant but give small investors confidence, or on preventing systemic risk in the financial system?
Higher systemic risk fee for these activities would raise their effective cost of capital.
These proposals, which would increase business risk and raise costs, are at cross purposes with the goals of lowering systemic risk and promoting economic recovery".
Margolies raises a red flag: Fannie Mae and its cousin, Freddie Mac, may not be prepared for "systemic risk"–in this case, disruption in the mortgage market.
However, in the remainder of my remarks today I will raise, in a preliminary way, what I see as some promising approaches for reducing systemic risk.
If regulators had been paying attention to measures of systemic risk like these rather than simply tier 1 capital they should have raised alarms.
Systemic Risk.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com