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....
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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
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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
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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
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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.
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www.dlapiper.com 24October 30, 2018
Thank You