Presentation to the LBMA THE 2008 FINANCIAL CRISIS 2018/Day 2 - MS.pdf · Presentation to the LBMA....
Transcript of Presentation to the LBMA THE 2008 FINANCIAL CRISIS 2018/Day 2 - MS.pdf · Presentation to the LBMA....
www.dlapiper.com 0October 30, 2018
THE 2008 FINANCIAL CRISISINSIDE PERSPECTIVE AND LESSONS LEARNED
Michael F. Silva, Partner, DLA Piper
October 30, 2018
Presentation to the LBMA
www.dlapiper.com 1October 30, 2018
www.dlapiper.com 2October 30, 2018
www.dlapiper.com 3October 30, 2018
www.dlapiper.com 4October 30, 2018
www.dlapiper.com 5October 30, 2018
www.dlapiper.com 6October 30, 2018
www.dlapiper.com 7October 30, 2018
www.dlapiper.com 8October 30, 2018
www.dlapiper.com 9October 30, 2018
www.dlapiper.com 10October 30, 2018
www.dlapiper.com 11October 30, 2018
www.dlapiper.com 12October 30, 2018
www.dlapiper.com 13October 30, 2018
www.dlapiper.com 14October 30, 2018
www.dlapiper.com 15October 30, 2018
www.dlapiper.com 16October 30, 2018
www.dlapiper.com 17October 30, 2018
www.dlapiper.com 18October 30, 2018
www.dlapiper.com 19October 30, 2018
www.dlapiper.com 20October 30, 2018
www.dlapiper.com 21October 30, 2018
The Dodd Frank Act
Created the
Financial Stability
Oversight Council
(FSOC)
Authorized the FSOC
to designate non-
banks as systemically
important
Established the
Volcker Rule
Created the “Orderly
Liquidation Authority”
Subjected systemically important
financial institutions to Fed
supervision and “enhanced
prudential standards,” including:
Enhanced Risk Management
Requirements
Enhanced Capital Requirements
Enhanced Liquidity Requirements
Stress Testing
Living Wills
Eliminated many of the
powers the Fed, FDIC &
Treasury used to
respond to the crisis
www.dlapiper.com 22October 30, 2018
What lessons were learned? Beware the shadows
Beware the experts
Are we safer? Yes, to a point
Will there be another crisis? Of course
BUT, very unlikely to be as bad as
2008
Concluding Thoughts
www.dlapiper.com 23October 30, 2018
What are possible sources/ triggers/accelerants for the next crisis?
Passive / Algorithmic / High Frequency
Trading
Shadow Banking System
Cyber 9/11
Emerging Market Debt
Geo-Political Shock
Trade Tensions
Historically Long Expansion
Potential Decrease in Global GDP
Concluding Thoughts
When will the next crisis occur?Sooner rather than later.
www.dlapiper.com 24October 30, 2018
Thank You