The President will most likely veto this bill. It is unlikely lawmakers will have the votes to override the veto. Certainly, the Department of Labor had the legal authority to adopt the rule (subject to any potential procedural change). It should go forward as adopted, notwithstanding (i) serious policy objections to the rule and (ii) the fact that a Congressional majority considers it to be flawed. That said, this "victory" of rulemaking exemplifies the wrong way to conduct regulatory…

One of the best books ever written about financial crises is , by  (1986). The book enjoyed a resurgence of popularity in 2010 with a number of articles dating from that period maintaining that we were in a "" (of the type predicted in the book). A number of Mr. Berner's conclusions seem to echo Mr. Minsky's theories, particularly the view that periods of low volatility can seduce investors into taking on too much leverage or other kinds of risk.

The SEC's proposals regarding liquidity and derivatives have been subject to significant negative reaction. The common theme from both industry and academic critics is that these proposals are economically simplistic and only appear to reduce risk. This may work for the economically unsophisticated (e.g., those who believe that all derivatives are inherently risk-creating), but in reality, those fearful of derivatives would increase risk by discouraging the use of hedging…

Just like banks, broker-dealers should also review their treatment of MMFs that have a floating share value or that otherwise do not behave in the same manner as "traditional" MMFs. For example, one question that firms must consider is whether or not a share in a floating value MMF should be treated as a cash-equivalent for margin purposes.