The regulators have recently pushed the FICC to substantially increase liquidity requirements with respect to cleared repos. This will (i) materially raise costs to firms that centrally clear repos, and (ii) encourage firms to move back to bilateral clearing. . In the case of the clearing of government securities, there is a flight to quality during a time of financial crisis. Consequently, there would seem to be no need for increased regulation (that is, in a crisis, liquidity will flow…

The notion that the departed head of the CFPB can simply bequeath control of one of the most powerful agencies in the federal government to a former subordinate seems, on its face, far-fetched. Democrats may very well have objections to the new Acting Head of the CFPB, but query whether those objections justify tearing at any reasonable process of good government to allow departed government officials to bestow their power by will on the next generation. If a court were to find that the…

Leaving aside the merits of this lawsuit, if any, the result of a victory by Ms. English would be that she would have the right to stay in office for a few more months, to fill out Mr. Cordray's appointed term. President Trump would then appoint the new Director. If a Democrat were then to be elected President, President Trump's appointee could either stay in place or gift control of the agency to another CFPB employee of that appointee's choosing. To say that this would be an odd result,…

It would not be surprising if other firms also paid less than adequate (from a regulatory standpoint) attention to hiring procedures of personnel who are not required to be registered. This disciplinary action is a warning to other firms to check their procedures (going forward) and their records (going backward).