The 2015 FSOC Annual Report suggested significant dangers ahead including: (1) very low interest rates that are making it impossible for retirement funds, particularly government retirement funds, to meet their future obligations, and (2) quick rises in interest rates that could lead to fire sales in markets where broker-dealers will have no incentive or ability to provide any liquidity. (See, .) That raises a challenge for monetary policy: keep interest rates low and pension plans…

From a policy standpoint, the interesting question is whether the capital rules treat corporate and municipal debt equally or favor either private or governmental lending.

It is hard to argue with the list of items the  requires the CFTC to consider before adopting a rule. (The cost-benefit requirements are in Section 202, on page 10). Given that the SEC and numerous other regulators are required to consider the costs and benefits of the rules they adopt, it is not obvious why the CFTC should be exempted from this requirement. Rather than opposing the requirement as inconvenient, Chair Massad should make the case as to why: (i) the CFTC should be…

Passing a version of this bill would raise the question as to what the CFTC should do regarding an actual rule on cross-border jurisdiction. One possible solution would be for Congress to mandate the CFTC's adherence to the SEC's cross-border jurisdictional rules until the CFTC could study the issue and adopt its own rules (which could end up being identical to those of the SEC). This would solve at least three problems. First, it would conform the CFTC and SEC's jurisdictions…