Virtual Symposium - Looking Back and Looking Forward: The Dodd-Frank Act Anniversary Archives
On July 20, 2011, Deloitte hosted a unique virtual symposium, Looking back and looking forward: the Dodd-Frank Act anniversary. During this one-of-kind online event, audience members were able to participate in a series of discussions aimed at furthering the dialog on financial reform's impact on banks and financial institutions, regulators, and customers.
The day began with a plenary session that brought together Deloitte subject matter specialists from around the globe to explore some possibilities about where the industry may be headed. Their role-play conversation was then followed by Q&A. Following the plenary discussion, Deloitte broadcasted 30-minute segments centered on “point/counterpoint” conversations that furthered the debate on the impact of financial reform.
|Capital and Liquidity
As financial reform takes effect, large systemically important banks will likely be subject to more stringent capital and liquidity requirements. How will these requirements impact changes to the capital structure, business models and the competitive landscape? And, practically, how uniform can we expect the global standards to be?
Dodd-Frank aims to help American consumers get the clear, accurate information they need to shop for financial products like mortgages, credit cards, and other financial products, and help them understand the fee, terms, and practices. What are some of the implications of new consumer requirements?
The net effect of reform on derivative products is that they will likely become commoditized products that may call for increased margin requirements. How can leading broker-dealers look at structural efficiencies and new opportunities to meet increased standards?
|Enterprise architecture and data strategy
As financial institutions comply with new regulations, reform is having a direct effect on organizations’ enterprise architecture and data strategy. How might organizations implement change and develop an overarching strategy to aggregate and leverage data internally while reporting externally to their various regulators?
Recovery and resolution plans are a key part of the global regulatory response for companies designated as a SIFI – “systemically important financial institution.” While the rules are in progress, what should financial institutions consider as they create a living will that demonstrates thoughtful design and credible execution capability?
While much of the attention to date has been on dedicated proprietary operations, the scope of the Volcker Rule extends far beyond “distinct” proprietary trading desks and is likely to affect the core of how banking entities conduct their trading and securities operations going forward. How will banking entities handle the challenge of unambiguously distinguishing permitted versus proprietary trading activities?
The additional people, data, technology, time, and capital demands required of systemically important financial institutions (SIFIs) will likely be significant. On the plus side, there could be possible funding- and borrowing-cost advantages that come from being viewed as too big to fail. Could this perception of greater strength make a company more attractive to investors, customers, business partners, and counterparties?
Dodd-Frank calls for changes to compensation governance structures and executive compensation requirements for major financial institutions. In balancing growth, hiring pressures, and the new regulatory challenges, will a new alignment of compensation and strategy emerge?