FSC Chair Hensarling Warns Regulators Against Overreliance on Complex Financial Modeling

Financial Services Committee ("FSC") Chair Jeb Hensarling (R-TX) delivered the opening remarks at an FSC hearing on capital and liquidity standards. Chair Hensarling stated that "relying on regulators to calibrate risk and predict future economic conditions according to highly complex models - models that neither market participants nor regulators themselves fully understand - clearly appears to be a recipe for financial crisis."

See: Chair Hensarling on Capital Standards: Is There a Better Way?