Since its inception in 2012, the Bipartisan Policy Center's financial regulatory reform initiative has proposed 100 recommendations to improve Dodd-Frank. Here are 10 recommendations BPC released in mid-July.
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Create a consolidated exam force. Prudent regulators should improve regulation by establishing a pilot program for a common bank examiner pool that provides for a unified examination and reporting process.
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Increase FSOC transparency. FSOC should allow market participants to make more informative decisions by releasing further information about its decision-making process, beginning with more detailed minutes similar to those reported by the Federal Open Market Committee.
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Set SIFI bail-in rules. The Fed should make financial institutions safer and processes for market participants more predictable by setting long-term debt holding requirements that will better enable large financial institutions to absorb losses.
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Converge resolution planning processes. The FDIC and Fed should use existing authority to help move toward a process to wind down too-big-to-fail institutions without cost to taxpayers by converging the living will and single-point-of-entry processes. Section 165 of Dodd-Frank requires all SIFIs to create "living wills" to facilitate "rapid and orderly resolution, in the event of material financial distress or failure."
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Implement Volcker the right way. Agencies should take account of real-world conditions by coordinating implementation of Volcker Rule regulations in a way that is phased in and updated iteratively based on data and metrics.
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Improve CFPB Process. The CFPB should provide greater opportunity for input from all stakeholders by pursuing policies through rulemaking rather than through individual orders and guidance.
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Clarify orderly liquidation. The FDIC should make the resolution process more predictable for investors, debtors and other stakeholders by issuing a policy statement on the single-point-of-entry strategy, including a statement that the strategy will be the presumptive path for resolving failed institutions.
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Assess international impact. The FSOC should strengthen the global financial system to improve coordination among U.S. and international regulators by conducting an assessment of the cross-border impacts of Dodd-Frank's rules and regulations.
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Coordinate capital markets regulation. The CFTC and SEC, two agencies with at times overlapping jurisdiction, should improve coordination by holding joint board meetings.
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Improve CFPB data collection and storage. The CFPB should enhance the quality of its data security for institutions and consumers; improve coordination with other regulators on data requests.
