The purpose of the June 29 meeting was to discuss the Obama Administration’s proposals for regulatory reform released on June 13. The focus of the meeting was mainly on two proposals: (1) the proposal to create a new broad resolution authority for financial institutions on the edge of failure and (2) the proposal to give the Federal Reserve more powers in the area of systemic risk regulation.

Following this meeting the Working Group agreed to try to develop an operational definition of systemic risk and to survey existing literature on the topic. John Taylor reviewed the questions that were likely to come up in his upcoming testimony at the House Financial Services Committee on July 9.