SYSTEMIC RISK REGULATION The administration proposes empowering the Federal Reserve to supervise and regulate firms whose failure could damage the system as a whole and to seize such firms if failure is imminent.
In that case, systemic risk regulation would best be left to a small group of bank regulators working to identify and resolve emerging risks.
There's little disagreement over the need for systemic risk regulation and resolution authority.
"People have a natural sense of risk regulation," said Jeffrey Fagan, director of the Center for Violence Research and Prevention at Columbia University.
Mr. Bernanke strongly supports putting the Fed in charge of risk regulation, but he and Fed officials are resisting Mr. Obama's plan for a separate consumer regulatory agency.
The Federal Reserve has taken dead aim on merchant banking, proposing to ban the practice as part of a "take no risk" regulation strategy.
NOT surprisingly, then, lacking any evidence of what may come, people are grasping for patterns in the sniper's previous actions -- an abstract form of risk regulation.
Because of this top-to-bottom failure of risk regulation, the financial system (including banks) was woefully undercapitalised vis-à-vis its actual risk.
The path to saving can be particularly uncertain in the United States' fragmented health care economy — a mix of risk, regulation and profit in which the incentives are often contradictory.
The Obama administration has proposed consolidating risk regulation under the Fed, while some in Congress want to strip away its oversight authority.
