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US regulators' failure to reduce risk to financial stability created by nonbanks is contributing to the latest crisis, Federal Reserve Governor Lael Brainard and former Fed Chair Janet Yellen say. The Financial Stability Oversight Council's ability to oversee insurers, hedge funds, money market mutual funds and other nonbanks has been curtailed, Brainard and Yellen say. MLex (free content) (30 Jun.)

The European Central Bank has released a consultation paper that proposes ways to ease bank consolidation. Topics include accounting for so-called badwill, along with assurance that merged entities would not face extra capital requirements. Reuters (01 Jul.)

The US has progressed in recent months toward Libor phaseout, despite the coronavirus pandemic, says Nathaniel Wuerffel, head of domestic markets at the Federal Reserve Bank of New York. "2020 is really a tipping point as we move from planning to implementing the transition," Wuerffel says. Practice Insight (01 Jul.)