Regulators
in sentence
982 examples of Regulators in a sentence
The
regulators
acquiesce because, simply put, they are afraid.
It is a silly and baseless fear, but that is how modern
regulators
think and act – in a state of constant, irrational anxiety.
Empowering Financial BankruptcyCAMBRIDGE – Four of the world’s most important financial
regulators
– the Bank of England, Germany’s Federal Financial Supervisory Authority (BaFin), the US Federal Deposit Insurance Corporation, and the Swiss Financial Market Supervisory Authority – recently asked the world’s derivatives industry to change the way it does business.
The question now is whether the
regulators
can make that happen with a request, as opposed to something more substantial.
The regulators’ tersely worded letter to the International Swaps and Derivatives Association (ISDA) asked it to renounce a core component of the industry’s multi-decade effort to exempt itself from financial debtors’ bankruptcy – an exemption that worsens not only the debtor’s stability, but also that of the global economy.
The
regulators
are focusing on an important feature of derivatives contracts that allows the derivatives industry to close out their dealings abruptly with a financially distressed entity, thereby making the institution incapable of recovering.
Regulators
around the world have worked hard to make the financial system safer.
Until now, bankruptcy has played a second-tier role in reform efforts, even though bankruptcy law does for industrial firms much of what
regulators
want for financial firms.
Regulators’ push for sounder finance has so far focused on requiring more capital, creating safer products, and establishing more resilient business structures.
But the US Congress and
regulators
have said all along that bankruptcy is the preferred way to restructure failed financial firms.
US regulators, for example, cannot first try bankruptcy before deploying their expanded powers under the 2010 Dodd-Frank financial-reform legislation; if they did, the bankrupt firm’s counterparties in the derivatives and repo markets would close out their contracts and dump their collateral as soon as they could.
Regulators
could not go back and fix it with their new Dodd-Frank powers, because the firm would already be ripped asunder.
So, as it stands now,
regulators
need to preempt bankruptcy, not rely on it, because as soon as any failed financial firm files for bankruptcy, it has signed its own death warrant.
The regulators’ letter to the ISDA asked the derivatives industry to rewrite its standard contracts, so that a bankrupt firm’s portfolio is not ripped apart as soon as it files.
But, as
regulators
reflect further, they will recognize that they cannot rely on the derivatives industry to revise its contracts any more than industrial bankruptcy relies on creditors’ contracts to stop failed firms from being ripped apart.
Perhaps
regulators
will find that they must require that the regulated have the desired contract provisions.
Regulators
may well need to turn to bankruptcy laws to fix the problem.
The regulators’ call to the ISDA for voluntary action will not amount to much if it is just a request to the derivatives industry to act against its own financial interests.
But it does start the
regulators
down the road to more serious reform.
Ending the Financial Arms RaceCAMBRIDGE – People often ask if
regulators
and legislators have fixed the flaws in the financial system that took the world to the brink of a second Great Depression.
Yes, the chances of an immediate repeat of the acute financial meltdown of 2008 are much reduced by the fact that most investors, regulators, consumers, and even politicians will remember their financial near-death experience for quite some time.
Politicians and
regulators
have neither the political courage nor the intellectual conviction needed to return to a much clearer and more straightforward system.
The problem, at least, is simple: As finance has become more complicated,
regulators
have tried to keep up by adopting ever more complicated rules.
Even back in the 1990’s,
regulators
would privately complain of the difficulty of retaining any staff capable of understanding the rapidly evolving derivatives market.
The so-called “green finance task force” – co-convened by the PBOC’s Research Bureau and the UNEP Inquiry into Design Options for a Sustainable Financial System – initially comprised 40 ministers, regulators, academics, and financial actors, supported by international experts.
The EU's trade
regulators
argue that they have the right--and the obligation--to initiate antidumping investigations if they suspect that a state, say, regulates prices for energy carriers in a way that subsidizes domestic firms.
At the same time,
regulators
increased inspections, closed down some 180 food manufacturers and now post the names of violators on their Web site.
So, rather than simply shutting our doors to Chinese products, we might contemplate helping China by opening the doors of our regulatory agencies to Chinese
regulators.
First, they claim that it is not regulators’ job to determine where financial institutions invest.
But
regulators
exist to protect the public interest, which must include guiding classes of investments that affect the resilience of the system as a whole.
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