- Former Managing Director and the Head of the Regulatory Management Team for JPMorgan Chase & Co. responsible for coordinating the firm’s internal dealings with supervisors and regulators globally.
- Designed and managed the firm’s Corporate Operational Risk function; and, prior to that, served as the firm’s Senior Credit Officer. He also was the General Manager of the Singapore Office and Regional Head of Credit for Asia Pacific. He was the Global Head of Credit Research and served for a time in Tokyo as the Head of the firm’s M&A Advisory function.
- Bank Supervision and Regulation Division of the Federal Reserve Bank of Cleveland.
- Founding member (JPMorgan) and Chairman, Operational Risk Data Exchange Association (ORX)
- Vice Chairman of the Board of Trustees of Case Western Reserve University and serves as Chairman of the Finance Committee.
- All 7 Best Practices
- Pre-Call Discovery Process
- One-on-One Call with Expert
- Session Summary Report
- Post-Session Engagement
Regulatory Management Strategies for Financial Institutions
- The regulatory climate is much more complicated today than in the recent past and that trend is likely to continue.
- The political fallout from the financial crisis of 2008 has not yet settled. This continuing volatility is in addition to the complexities caused by the state of international affairs following 9/11 and the continuing trend of globalization. The macro political and economic atmosphere suggests that the challenging environment in the financial industry is not likely to diminish any time soon. As the economic recovery continues, the banking industry may regain its credibility in the eyes of politicians and the public at large but that remains a promise for the future.
- The notion of "too big to fail," which is an outgrowth of the 2008 crisis, is here to stay at least for the foreseeable future.
Many current regulatory initiatives are driven by fear of the next crisis. Regulators appropriately want to ensure that the U.S. taxpayer is in no way vulnerable to financial difficulty and this concern applies to the overall marketplace as well as individual financial institutions of a certain size. These institutions are so deeply embedded in everyone's life that the federal government cannot allow them to fail.
This also means that the government is going to have a say – and a very large say – in how these institutions are operated and how they manage risk. The risk that banks and large financial institutions are expected to manage is not only their own financial risk but the risk to the society at large. Government regulatory bodies will continue to insist that financial institutions remain aware of their responsibilities.
- The Consumer Financial Protection Bureau (CFPB) is still finding its way.
- Established by the Dodd-Frank Act of 2010, the CFPB has a mission to ensure that "consumers get the information they need to make the financial decisions they believe are best for themselves and their families – that prices are clear up front, that risks are visible, and that nothing is buried in fine print. In a market that works, consumers should be able to make direct comparisons among products and no provider should be able to use unfair, deceptive, or abusive practices." This is a very broad mission and this bureau is just getting started. Regulators have not yet finished writing the regulations associated with Dodd-Frank.
- Technology changes, and their associated threats, continue unabated.
What might policy makers do about bitcoin? What about news stories of continuing cyber attacks? With emerging technologies come emerging problems. When it comes to fraud, criminals get smarter and smarter. Bitcoin awaits an economic policy decision regarding whether or not the government will encourage the development of an entirely new money supply. But what will this money supply mean for the banks? These questions and many more will continue to engage the financial industry, especially as such areas as money transfers become entirely digitized.
- Larger global trends continue, such as continuing unrest abroad and the threats of terrorism.
- Issues around criminal justice and national security in the U.S. will continue to have some impact on financial institutions and regulators. For instance, the money used by terrorist organizations tends to travel through a whole chain of financial institutions. Governments are getting increasingly skilled at monitoring these transactions and the trails they leave and at preventing the flow of funds where prevention is beneficial for national security. Government efforts are oriented toward enforcing the laws or getting the required information to enforce them from the primary bank or institution.