Managing to the New Regulatory RealityDoing Business Under the Dodd-Frank Act
Wiley Finance, Band 611 1. Aufl.
How to manage and profit from the new financial regulatory reality Now, more than ever, navigating the new financial regulations is paramount for the survival of many large institutions. Managing to the New Regulatory Reality: Doing Business Under the Dodd-Frank Act provides the most important, need-to-know lessons for private sector management, boards of directors, policymakers, and even regulators, shedding light on the movement from crisis to panic, regulatory reform to winning under continuing financial regulatory uncertainty. Reviews the causes of 2008's financial crisis, and assesses its impact on multiple stakeholders Describes and analyzes the impact of the immediate U.S. and G20 policy and regulatory reactions on financial institutions that the crisis response triggered Explains the legislative policies, and examines how institutions and the financial services industry can make these new policies and regulations work for them All financial institutions, but especially large companies, will have to aggressively manage to the new regulatory reality. Managing to the New Regulatory Reality is the must-have survival guide to sustaining profitability despite all the new red tape.
Foreword. List of Acronyms. Preface. Part One Understanding the Immediate Political Reactions. Chapter 1 Immediate U.S. Reaction The Emergency Economic Stabilization Act of 2008. All Roads Ultimately Lead to Congress. How a Crisis Bill Becomes an Emergency Law. EESA's Major Provisions. Conclusion. Chapter 2 Rise of the G20 - A Global Call to Action. A New International Financial Order. Toward a Balanced Approach. Conclusions. Chapter 3 The Beginnings of the New Regulatory Reality. Democracy Can Act Swiftly in a Crisis. Problems at a Small Minority of Firms Create Lasting Industry Problems. Populist Anger Drives Unintended Consequences. When Governments Intervene to Protect Taxpayers, Strings Are Attached. Crises Have Long Political and Regulatory Tails. Safety Valves Don't Always Work as Expected. International Crises Command Global Responses. Conclusions. Part Two: Understanding U.S. and G20 Regulatory Reforms. Chapter 4 The U.S. Legislative Process. Administration Proposal. House Consideration. Senate Consideration. Conference Consideration. Conclusion. Chapter 5 The Dodd-Frank Act of 2010. New Regulatory Architecture. New Regulatory Standards. New Operating Restrictions. Higher Regulatory Costs. Conclusions. Chapter 6 Beyond the U.S. - Current G20 Efforts. G20 Agenda Going Forward. IMF Review of U.S. Financial Sector Assessment Program, 2010. International Industry Response. Conclusions. Part Three Preparedness: 10 Lessons for Winning in the New Regulatory Reality. Chapter 7 Set the Right Leadership Tone at the Top. Background. Corporate Leadership. Leadership in Society. Leadership on Public Policy. Implications. Chapter 8 Tell a Good Story. Background. What Individual Firms Can Do. What the Industry Must Do. Implications. Chapter 9 Be Politically Adept, Not Tone Deaf. Background. New Legislative Mandates for Executive Compensation Limits. Consumer Protection. Implications. Chapter 10 Advocate Constructively for Better Outcomes. Background. No Shortage of Future Policy Debates. The Importance of Balanced Policy Objectives. Broader Issues: Getting Back to Competitiveness. Implications. Chapter 11 Manage Strategy and Regulatory Risks Together. Background. Strategy and Regulatory Risks after the Dodd-Frank Act. Implications. Chapter 12 Maintain Fortress Strength at all Times. Background. New Basel III Requirements. New Capital and Liquidity Requirements in the Dodd-Frank Act. Implications. Chapter 13 Live Good Governance. Background. The Value of Good Governance. Recent Regulatory Efforts to Improve Corporate Governance. IIF Principles. Implications. Chapter 14 Plan Carefully for Contingencies. Background. U.S. Rapid Resolution Plans. Implications. Chapter 15 Engage Regulators on Warning Signs. Background. Making sense of crises warning signs. The New Official U.S. Role in Identifying Financial Crises. An Industry Action Plan on Early Crisis Detection. Implications. Chapter 16 Build Trust-based Supervisory Relationships. Background. Building Trust-Based Supervisory Relationships. Improve Supervisory Relationships to Avoid Negative Regulatory Consequences. Implications. Chapter 17 Conclusion - Be Prepared! Implications for Financial Companies. Implications for the Financial Services Industry. Notes. Additional Resources. Acknowledgments. About the Author. Index.
Gregory P. Wilson is the founder of his own consulting firm specializing in financial policy and regulatory issues and is a former part-ner in McKinsey & Company's Washington, D.C., office. Prior to joining McKinsey, during the U.S. savings and loan crisis, he served as the deputy assistant secretary for financial institutions policy at the U.S. Treasury Department, where he received the Secretary's Distinguished Service Award. For more information, visit www.gregwilsonconsulting.com.
The year 2008 will forever be remembered in U.S. financial history as a transformational shift in terms of how the American political establishment views the financial services industry. Its long-term implications are likely to have a negative impact on consumers, investors, economic growth, and jobs in the new regulatory reality unless that relationship is realigned with greater balance in mind for our economy. In Managing to the New Regulatory Reality, Gregory Wilson shows financial firms how to step up the way they manage their unique regulatory risks and new supervisory environment so that they can continue to support their ongoing competitive strategies and business models for serving customers and rewarding investors—and sustain profitability through all of the new red tape. Wilson details the actions of the U.S. Congress to pass the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, showing how the legislative process was just as important as the legislative substance. He also explains the importance of the new international regulatory actions of the Group of Twenty to global financial firms. He then offers ten universal lessons to help executives, directors, and others be better prepared for the future as the new regulatory reality unfolds over the decade. These manageable lessons include advice on such issues as executive compensation and consumer protection in the new political reality, the value of good governance, the importance of working with regulators to build trust-based relationships, stepping up public policy advocacy to ensure better regulatory outcomes, and other critical issues. To be commercially successful in the new regulatory reality of the foreseeable future, management and boards will need to re-learn and fully understand the universally applicable lessons coming out of this crisis before the next crisis hits. With Managing to the New Regulatory Reality as their guide, financial institutions can make the new policies and regulations work for them—not against them.
Praise for MANAGING TO THE NEW REGULATORY REALITY "This is the first book to go beyond what happened and why and into today's most pressing question for the industry, which is 'how do we adapt to and thrive in the post-crisis regulatory environment?' "—Robert P. Kelly, Chairman and CEO, BNY Mellon "This book provides a broad and easy-to-understand synopsis of the Dodd-Frank Act coupled with useful strategies, tactics, suggestions, and ten very valuable lessons for winning, coping, and, indeed, succeeding in this radically new and challenging regulatory environment."—Dick Kovacevich, retired chairman and CEO, Wells Fargo and Company "Drawing on his detailed knowledge and high-level experience, Greg Wilson provides clear guidance and actionable advice to help companies and their officers and directors succeed in the new regulatory environment."—J. Michael Shepherd, Chairman and Chief Executive Officer, Bank of the West "This is an absolutely critical must-read for financial services executives. It's the only book of its kind that provides a granular 'how-to' guide to managing our businesses in the new regulatory environment. An excellent read!"—Norman R. Sorensen, President and CEO, Principal International, Inc. "This book could only have been written by someone who has a thorough understanding of the political process and financial markets and institutions. Particularly notable is that it describes the impact of Dodd-Frank and identifies ten clear lessons for bank management. This book should be required reading for today's financial managers."—Mark Olson, Co-Chairman, Treliant Risk Advisors; former governor, Federal Reserve System; former chairman, Public Company Accounting Oversight Board "In describing the 'new regulatory reality,' Greg Wilson does a masterful job in describing how we got here, where we are, and where we are going. More importantly, Mr. Wilson offers a clear, practical guide for executives to master the new world of regulatory reality."—Steve Bartlett, President and CEO, The Financial Services Roundtable