Investment Management Partner Brian McCabe Discusses the Systemically Important Financial Institutions Debate in Ignites

In The News
May 28, 2014
Investment management partner Brian McCabe (Boston) is quoted in a May 28 Ignites article titled “Industry Expects Some FSOC Pullback: Poll.” The article reports on the recent opposition from asset management firms in connection with the Financial Stability Oversight Council’s (FSOC) possible designation of fund firms as systemically important financial institutions (SIFI), which could increase industry regulation as well as shift oversight and authority from the SEC to the FSOC. Mr. McCabe notes, “It seems like there are two fundamentally different regulatory regimes that are clashing here…The federal banking system is mostly about taking risk out — creating safety and soundness through prudential regulation. Whereas capital markets are all about allocating risk — turning on the lights and making sure everyone understands the rules and risks involved in allowing the markets to do the allocation.”