Guilty Banks are Like Heroin Dealers Says Sullivan & Cromwell’s Rodge Cohen | Summary and Q&A

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August 18, 2015
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Bloomberg Law
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Guilty Banks are Like Heroin Dealers Says Sullivan & Cromwell’s Rodge Cohen

TL;DR

Centralization of governmental cyber agencies is crucial for effective regulation and oversight of banking and securities markets.

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Key Insights

  • ❓ Centralization of cyber agencies is necessary for efficient regulation and oversight.
  • 🫠 Preemptive solutions are crucial to avoid ad hoc responses to financial crises.
  • ✋ Excessively high capital requirements can hinder credit formation.
  • 🪛 Collaboration, data-driven arguments, and a measured approach are essential in advocating for effective regulation.
  • 🐕‍🦺 Regulatory distinctions can contribute to disintermediation in the financial services industry.
  • 🆘 Thorough internal investigations and cooperation can help mitigate penalties in adversarial situations.
  • 🏃 Regulators should exercise judgment to avoid overreaching in imposing penalties.

Transcript

so I was intrigued by your call for centralization of kind of governmental cyber agencies you know you've major fame as a banking lawyer and bank regulation is famously decentralized could you talk about that for a minute dude does that work do we need more centralization of the regulation of banks and securities markets you know I think it's a gre... Read More

Questions & Answers

Q: Is centralized regulation of banks and securities markets necessary?

Yes, the current decentralized regulation system causes delays and inefficiencies. Centralization allows for more efficient and effective oversight.

Q: Can we prevent ad hoc solutions to financial crises?

It is unlikely, as unforeseen problems will always arise. However, the Dodd-Frank Act's resolution regime provides a framework to mitigate risk and minimize the impact of crises.

Q: Do higher capital requirements always stabilize the financial industry?

No, while it is important to avoid excessively low capital levels, extremely high capital requirements can also hinder credit formation and lead to increased risk-taking.

Q: How can one advocate for regulation on behalf of banks without being perceived as biased?

Collaboration within the industry, data-driven arguments, and avoiding excessive rhetoric can help advocate for effective regulation without appearing self-serving.

Summary & Key Takeaways

  • The speaker discusses the need for centralization in the regulation of banks and securities markets, comparing it to the decentralized nature of banking regulation.

  • Centralization in cyber agencies is necessary to avoid delays and inefficiencies caused by multiple agencies regulating the same issues.

  • The speaker emphasizes the importance of finding solutions in advance to avoid ad hoc responses to financial crises, while acknowledging that some level of ad hoc resolution may still be necessary.

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