Financial Regulatory Reform
The Graph of the Week looks at whether the NABE Policy Survey panelists feel will be the effect of proposed financial reform on risk to the financial system.:
The Obama administration introduced a proposal to further restrict activities of large depository institutions that would limit the size of these companies and prohibit certain proprietary trading activities in an effort to address Too-Big-To-Fail issues surrounding some large firms. With that proposal as a backdrop, 59 percent of survey respondents believe that imposing size restrictions on these companies would not be an effective means of addressing the Too-Big-To-Fail issue. Further, almost 57 percent of those surveyed believe that a ban on proprietary trading on large depositories would mitigate potential systemic risk in the financial services industry.
Read the full survey here.
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