Systemic Risk Council Launches Interactive Tool to Evaluate Largest U.S. Financial Institutions

Tool aims to boost transparency of financial operations; help investors to make informed decisions

WASHINGTON--()--The Systemic Risk Council (SRC), a private sector, non-partisan body, today launched an interactive tool, designed to provide users with a simple way to track and assess changes in the financial conditions of the largest, most complex financial institutions in the United States. The interactive can be found at www.systemicriskcouncil.org/interactive/.

The tool allows the public to examine existing public information about size, capital, leverage and reliance on short-term funding of several Systemically Important Financial Institutions (SIFIs). The tool shows both current information, as well as trends over the past 15 years. Users can compare all institutions using one metric at one point in time; look in more detail at a particular institution using up to three metrics over time, or compare up to three institutions over time on any single metric.

“Given the size, scope and complexity of these companies, as well as the length and complexity of their financial reporting, it is difficult for the average person to assess whether firms are in fact, getting smaller, safer or more resilient,” said SRC chair Sheila Bair. “We are hopeful that the interactive provides simplicity and accessibility for the general public in accessing information to evaluate progress in two areas most problematic during the crisis; too much leverage at banks and too much reliance on short-term borrowing.”

The institutions available for tracking have all been identified as “systemically important” by the Financial Stability Board, or the U.S. Financial Stability Oversight Council. They are:

  • AIG
  • Bank of America
  • Bank of New York Mellon
  • Citigroup
  • GE Capital
  • Goldman Sachs
  • JP Morgan Chase
  • Morgan Stanley
  • Prudential Financial
  • State Street
  • Wells Fargo

The interactive uses information compiled and provided by SNL Financial based on reports filed with federal regulators.

About the Systemic Risk Council

The Systemic Risk Council (SRC or Council) is a private sector, non-partisan body of former government officials and financial and legal experts committed to addressing regulatory and structural issues relating to systemic risk in the United States. It has been formed to provide a strong, independent voice for reforms that are necessary to protect the public from financial instability. The goal is to help ensure a financial system in which we can all have confidence. The SRC was formed by CFA Institute and The Pew Charitable Trusts to monitor and encourage regulatory reform of U.S. capital markets focused on systemic risk. The statements, documents and recommendations of the Council do not necessarily represent the views of the supporting organizations.

For more information about the Council, please see its website http://www.systemicriskcouncil.org.

Contacts

CFA Institute
Sarah-Jane Purvis, +44 207 330-9559
Sarahjane.purvis@cfainstitute.org

Release Summary

The Systemic Risk Council, a non-partisan body, has launched an interactive tool to allow users to track and assess changes in the financial conditions of complex US financial institutions.

Contacts

CFA Institute
Sarah-Jane Purvis, +44 207 330-9559
Sarahjane.purvis@cfainstitute.org