According to the Report, the major benefit of sponsored (centrally cleared) repo is that it provides broker-dealers and banks an accounting benefit. However, since this accounting benefit does not change the fundamental economics or risk of a transaction, it is not obvious why central clearing should prevent market disruptions caused by real world events, such as the Covid-19 pandemic.  

It is troublesome that the FRBNY does not seem to understand how cleared repo works. For…

Under Mr. Behnam's leadership, the CFTC successfully avoided most of the criticisms of regulatory over-reach and exceeding the limits of statutory authority that have been leveled at the SEC. (Though there have been missteps, for example attempting .)

Mr. Behnam's remark that the CFTC requires more funding to combat climate change is also an indicator of the great temptation—to which all the regulators seem vulnerable—to chase issues of political interest that are outside of the…

It was expected that the Chairs of the CFTC and the SEC would give up their roles in anticipation of a new administration.

It is notable that, while SEC Chair Gensler will leave that agency on the date of the inauguration, CFTC Behnam intends to stay in his role as Commissioner for a little bit longer (an additional two weeks), preserving the Democratic Commissioners' hold on rulemaking for that short period of time. Presumably, the incoming President will designate one of the two…

It was widely reported that President Trump would seek to replace Mr. Barr as the Vice Chair for Supervision. The Vice Chair must be a member of the Federal Reserve Board.