Week InReview

Crisis Retrospective

Tomorrow marks the 10th anniversary of the bankruptcy of Lehman Brothers. A look ahead to the next crisis, Can We Survive the Next Financial Crisis?,  is a nuanced look at the important ways in which the system that led to the last crisis has become safer and also the pockets of risk that have grown since 2008.

  • Decade after repos hastened Lehman's fall, the coast isn't clear. (Bloomberg Markets)
  • Many lawmakers and aides who crafted financial regulations after the 2008 crisis now work for Wall Street. (The Washington Post)
Friday | Sep 14, 2018
The 'Hindenburg Omen' is stalking near-record U.S. stock market.
Warnings  from Wall Street are coming thick and fast as U.S. stocks sit near all-time highs. The latest, from Sundial Capital Research Inc., points to a (controversial) group of potentially bearish technical signals known as the  Hindenburg Omen (Bloomberg Markets | Sep 12)

FSOC to offer guidance on change in nonbank supervision
The Financial Stability Oversight Council plans to publish guidance on proposed amendments to its approach to nonbank supervision. FSOC classifies specific nobanks as systemically important, but it intends to move toward an activity-based approach that Craig Phillips, counselor to Treasury Secretary Steven Mnuchin, says would "really identify the activities that are causing potential stress to the system ... as opposed to focusing exclusively on the designation of the individual entity." (American Banker | Sep 12)

Fed considers a new tool to avert crises
The Federal Reserve has two tools for stamping out financial bubbles, regulation or interest-rate increases. Fed officials are debating the merits of requiring US banks to hold additional capital while the economy is good so they will have funds available if the economy sours. (The Wall Street Journal | Sep 9)
The Cyber Cafe
Cybersecurity news every Friday
Why the focus is shifting to boards on cyber security
Corporate governance specialists at big asset managers are increasingly concerned that senior management and board directors at listed businesses across the world are ill-prepared for potential data breaches and other technology problems.

GAO urges government action to combat cyberthreats
Federal agencies are failing to adequately address cybersecurity risks, jeopardizing not only the operations of the federal government and its agencies but also the personal information of U.S. citizens, according to a new audit by the Government Accountability Office.

Federal agency to establish privacy framework
The National Institute of Standards and Technology (NIST) will create a framework to guide companies in protecting customer data, and will hold a public workshop next month to gather feedback on content for the framework.
The Hill
Binge reading disorder
Hand-curated, chosen with love
Can Mark Zuckerberg fix Facebook before it breaks democracy?
The most famous entrepreneur of his generation is facing a public reckoning with the power of Big Tech.

Janet L. Yellen: The most ambitious climate plan in history
"The goal of U.S. climate policy should therefore be to exceed Paris. "We believe the most politically viable way to accomplish this is a plan co-authored by former Republican Secretaries of State James Baker and George Shultz. The Baker-Shultz plan is based on a gradually rising fee applied to all carbon emissions, with all the revenue rebated directly to the American people. A family of four would receive approximately $2,000 per year in "carbon dividends."  

Gen Z is coming to your office. Get ready to adapt.
Gen Z was shaped by recessions, financial crises, war, terror threats, school shootings and the constant glare of social media. Meet your new employees.