COVID-19 Updates 5/15

Fed Financial Stability Report  

Today the Federal Reserve released its biannual Financial Stability Report.

Regulatory Relief 

SEC Chairman Clayton released a statement in connection with yesterday’s closed FSOC conference call, identifying systemic risk related priorities for the agency. The Chairman reported that the agency’s COVID-19 Market Monitoring Group is focusing on interconnections across financial markets and impacts of investment strategies that automatically require purchases or sales of investments based on ratings or similar metrics. This work-stream could lead to significant changes in how the SEC, US and foreign policymakers think about sources of systemic risk, and how to measure and guard against it.