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Breakingviews: Non-bank SIFIs at last

Tuesday, June 04, 2013 - 03:41

June 4 - Reynolds Holding and Breakingviews columnists discuss the designation of AIG, GE Capital and Prudential Financial as systemically risky and whether the move comes too late.

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Well it's better -- -- Everett Washington DC this morning the -- regulator or financial stability perhaps not as designated. They Jeanne. On GE capital and other not banks as -- systemically important financial institutions which subjects them to greater oversight no Agnes. It's been what five years since the beginning of financial crisis for three years and stop Franklin. Ask is -- really a case of what too little too late. You had to happen repeatedly IG and Jean capital. Significant history and the crisis in process still desperately in -- and Witten they're still going to be most likely other names like this process. We're talking about it's it's taken three years like Timothy Geithner again -- edgy anti capitalist the kind of you know. Non banks that should get stricter oversight for years ago would that mean AIG is no -- right -- after what happened in in in 2008. It's pretty obviously -- it was a problem. It -- greater oversight. I think it had been it overseen by the Office of Thrift Supervision that the real loser of yours today that wasn't too much of a surprise. Putting in credentials sparrows they're trying to look at -- pictures. You obviously -- apps to come here for credential Matt Light and then GE capital and NG capital alone. Would have been a real problem had it not been attached to this giant industrial business. -- lots cash of one problem it -- -- that's just tell us not forget and they often they often got assistance that Africa are having him back there that's -- they got that three years medium term debt guaranteed -- media from it yet but it's still. Manages that's the issue or innocence saying thank you. They had to go through this first laborious process to actually you know. Mean these companies. But in reality as both she capital and actually have shrunk pretty significantly since that time AIG and shuttered its financial products unit which was that was which was the problem. -- capital funding problem actually in 2008 is now has is sitting on and you know mountain of cash. But I guess this is kind of the issue right I mean. This process takes this process and other processes that that the F suck as a response of course takes a lot of manpower and think Matt Light upon over thirty times in space they want nice -- -- to meet quarterly. -- -- this issue of like it's been five years financial markets on just stands now vitamins they're always evolving. Market discipline all these I mean if you went basically one boss and had it not been for the US treasurer. -- GE capital would have gone bust had not been forth right zone treasury branches GB. The industrial business -- so that I guess the point you you're kind of making is what we're looking backward rather than looking forward right the futurists that we. That we really do need to be focused on that we don't so whether it's. Black rock but it's ETF's business whether it's exchanges themselves and clearing houses and these -- -- cyber security and southerners are -- economic times. We don't know what it's not a. It's not that you don't know that to look at them just went unaddressed there's finally an amount of sources resource transfer for regulating. Right -- -- and and as you know exactly look into and they have to do this right at the Dodd-Frank act committed but I just think it's one of these things. Note and other institutions may be later they can appeal -- note that yeah recently and there are still studying us. And they still have to go through that whole process where they can really announcing what happens see who else may be named in the meantime stay tuned for more breaking news tomorrow.

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Breakingviews: Non-bank SIFIs at last

Tuesday, June 04, 2013 - 03:41