• Women Leaders in Finance Discuss Regulation


A purely self-regulated financial system does not foster a culture of compliance, Federal Reserve Board Governor Sarah Bloom Raskin said during a panel discussion, hosted by Sawyer Business School’s Institute for Executive Education and Lifelong Learning.

Instead, a combination of self-regulation and government oversight is needed, she said, adding that primary responsibility lies with individual institutions.

Raskin has seen an increase in operational failures at financial institutions because of poor oversight. “The easiest example of this is robo-signing, which we saw quite a bit going on in the mortgage crisis, where institutions were outsourcing a lot of their mortgage compliance work to third parties,” she said.

Raskin explained that the Federal Reserve is implementing the Dodd-Frank Act, which was designed to revamp the nation’s financial regulatory system, and advocates increasing capital standards for large banks.

A former commissioner of financial regulation for Maryland, Raskin said that state and federal agencies are making strides to coordinate their regulatory efforts. "I think state regulators are very well positioned to actually see developing trends from a regulatory perspective and a new product perspective," she said.

Other panelists included Gail Hillebrand, associate director of Consumer Education and Engagement at the Consumer Financial Protection Bureau; Heather Koenig, global chief regulatory counsel at BNY Mellon; and Coryann Stefansson, managing director at PricewaterhouseCoopers. Miriam Weismann, a professor of Business Law and Ethics and director of the Center for Global Business Ethics and Law at Sawyer Business School, moderated the discussion.

The panel discussion was part of the Institute’s Lifelong Learning Series. The next event, Leading the Business of Real Estate Enterprises, will take place on November 15. Register today.

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