The following article by Gregg Gelzinis was posted on the Center for American Progress website December 7, 2017:
Treasury Secretary Steven Mnuchin listens as President Donald Trump speaks during a meeting on the federal budget on February 22, 2017, in the White House.
The Trump administration is quietly choking off funding to financial stability programs that were established after the 2007-08 financial crisis. These funding cuts, which do not involve congressional appropriations, only make the U.S. financial system more vulnerable to future financial sector risks and will cost taxpayers in the long run.
The financial crisis made it clear that the financial regulatory regime in the United States lacked an adequate systemic risk mandate, as well as the resources necessary to fulfill that financial stability role. No regulatory body was tasked with assessing and mitigating the evolving risks that build up in financial institutions and financial markets across the financial system. Enacted in 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act created two entities to help tackle this regulatory gap: the Financial Stability Oversight Council(FSOC) and the Office of Financial Research (OFR). Continue reading “The Trump Administration Is Quietly Slashing Financial Stability Funding”