Regulators
in sentence
982 examples of Regulators in a sentence
Loss of trust probably has multiple causes, including analytical failure: central banks, regulators, market participants, rating agencies, and economists almost all failed to detect rising systemic risk in the years preceding the current crisis, much less to take appropriate corrective action.
Many academics and pundits have castigated
regulators
and central bankers for their inability to understand the obvious attractions of so-called “narrow banking,” a restoration of Glass-Steagall-era separation of commercial and investment/merchant banking, or dramatically higher capital requirements.
The reader is obliged to conclude that
regulators
might not have been so dim after all.
If efforts to produce a parallel bail-in arrangement, which allows bondholders to share the pain, are also successful, we might be within sight of a sensible and not-too-costly reform with which the market can make peace – and which
regulators
would have a realistic chance of managing.
Bank of America performed poorly on the US Federal Reserve’s financial stress tests, and
regulators
criticized Goldman Sachs’ and JPMorgan Chase’s financing plans, leading both to lower their planned dividends and share buybacks.
Public anger gave
regulators
in the United States and elsewhere widespread support after the financial crisis to set higher capital and other safety requirements.
The bad news is that US bank representatives cite these studies when claiming, in the financial media and presumably to their favorite members of Congress, that the too-big-to-fail phenomenon has been contained and that the time has come for
regulators
to back off.
The studies could be telling us that investors believe that
regulators
are on the case and have enough political support to implement further safeguards.
The second reason why such studies should not deter
regulators
from continued intelligent action is that the research focuses on long-term debt.
But that is not the right place to look nowadays, because
regulators
are positioning long-term debt to take the hit in a meltdown, while making banks’ extremely profitable – and far more volatile – short-term debt and trading operations more certain to be paid in full.
Regulators
must not be deterred by bank lobbying or studies that measure neither the short-term boost afforded by a bank’s too-big-to-fail status nor how much of the perception of increased safety can be attributed to the regulations in place and the expectation of additional good regulation.
In the absence of such studies,
regulators
must use their own judgment and intelligence.
This is true for the banking system, which has not de-leveraged to the satisfaction of either
regulators
or the markets, thus limiting the scope for credit growth.
Intransigent opposition by anti-science, anti-technology activists – Greenpeace, Friends of the Earth, and a few other groups – has spurred already risk-averse
regulators
to adopt an overly cautious approach that has stalled approvals.
As a result, many of the most widely prescribed drugs today were subject to a long process of preclinical experimentation, followed by clinical studies that lasted several years and cost millions of dollars, before gaining regulators’ approval.
This poses a dilemma, because
regulators
are concerned about the lack of safety information about these new drugs.
New models of so-called adaptive licensing, or conditional approval, are being used to balance patients’ needs with regulators’ caution.
Increasing knowledge of genetics is producing a new generation of medicines specifically tailored for individual patients, posing yet another new challenge to the industry, regulators, and payers.
With most credit pipelines already partly blocked, the shortage of corporate credit will become more severe as
regulators
finally force banks to embark on a proper mobilization of prudential capital and shrink balance sheets to less risky levels.
But, instead of supporting Asian financial institutions’ capacity to take over the intermediation of the region’s savings, Asian financial
regulators
are focused on adopting the new global financial regulatory standards being pushed by their American and European counterparts – standards that American and European politicians are threatening to unwind.
Market economies cannot operate when their established rules are haphazardly enforced, which is what happens when national and international
regulators
turn into advocates for local enterprises and enemies of foreign businesses.
Regulators
are instructed, in no uncertain terms, to make sure that all large financial firms are structured in such a way that bankruptcy, using the standard rules and procedures of the court system, can happen without repeating the catastrophic post-Lehman cascade.
Finally – and most fatally – the bankruptcy of any large US financial firm today would induce a scramble for assets by
regulators
around the world.
Some foreign
regulators
– such as the Bank of England – have agreed not to act preemptively in a resolution process run by the FDIC.
A preferable approach to resolving the problem might be more vigorous use of the tools available to market
regulators.
This entails preventing administrative abuses, establishing a level playing field for SOEs and other companies, and divorcing
regulators
from regulated entities.
At the same time, top
regulators
have begun to articulate – with some precision – what needs to be done.
In addition, governments and
regulators
can take concrete steps to stimulate private-sector investment in cleaner forms of energy.
In addition, governments and
regulators
should adopt policies ensuring sustainable financial-sector practices, including annual reporting by companies and investors on environmental, social, and governance issues and due diligence and risk models regarding environmental hazards.
And China, when it took a 10% stake in the US private equity group Blackstone, eschewed any voting rights in the company’s management, perhaps as a way of keeping US financial
regulators
happy.
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