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


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


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


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.


Thank You

Presentation to the LBMA THE 2008 FINANCIAL CRISIS 2018/Day 2 - MS.pdf · Presentation to the LBMA....

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