CRS Examines Systemic Risk Reforms In Financial Regulation

In a new report, the Congressional Research Service ("CRS") analyzed the 2007 market crash and the 2020 pandemic crash, the steps that Congress took after each of these crises, and the authorities that the regulators relied upon to reduce systemic risk and avert market crashes.

The authors describe various post-Dodd-Frank measures and the extent to which they have been implemented, and whether, or to what extent, they succeeded. For example, the CRS provides a description of the activities of FSOC, the various recommentations that it has made and where FSOC was successful or not in obtaining the implementation of those recommendations. CRS asserts that financial stability-related reforms enacted after the crises were successful in preventing the failure of large financial firms, which would have otherwise required bailouts. The authors contend that the responses were less successful overall in creating a more resilient financial system that would withstand sudden