Financial Derivatives:
Actions Needed to Protect the Financial System
T-GGD-94-151: Published: May 19, 1994. Publicly Released: May 19, 1994.
Additional Materials:
- Full Report:
Contact:
GAO discussed federal oversight of derivatives activities. GAO noted that: (1) most of the over-the-counter (OTC) derivatives activity in the United States is handled by 15 major U.S. dealers who are extensively linked with each other, end-users, and the exchange-traded market; (2) these dealers' failures or abrupt withdrawals from trading would disrupt markets and expose others to risk; (3) the federal government would likely intervene to keep the financial system functioning in cases of severe financial stress; (4) an international financial organization and federal regulators have issued recommendations and guidelines for their derivatives dealers to enhance their risk-management practices, but there is no regulatory mechanism to ensure their compliance with these standards; (5) significant gaps and weaknesses in dealer regulation include limited regulatory authority over securities firms' and insurance companies' affiliates that deal in OTC derivatives, inadequate reporting requirements and testing of internal controls and systems, incomplete and inconsistent accounting standards for derivatives, and inadequate disclosure of derivatives activities; and (6) regulators must strike a proper balance between allowing the U.S. financial services industry to grow and innovate and protecting the safety and soundness of the financial system, which will require international cooperation among all interested parties.
Dec 16, 2020
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Financial Stability:
Agencies Have Not Found Leveraged Lending to Significantly Threaten Stability but Remain Cautious Amid PandemicGAO-21-167: Published: Dec 16, 2020. Publicly Released: Dec 16, 2020.
Dec 10, 2020
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Federal Reserve Lending Programs:
Use of CARES Act-Supported Programs Has Been Limited and Flow of Credit Has Generally ImprovedGAO-21-180: Published: Dec 10, 2020. Publicly Released: Dec 10, 2020. -
Financial Assistance:
Lessons Learned from CARES Act Loan Program for Aviation and Other Eligible BusinessesGAO-21-198: Published: Dec 10, 2020. Publicly Released: Dec 10, 2020.
Sep 22, 2020
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Anti-Money Laundering:
Opportunities Exist to Increase Law Enforcement Use of Bank Secrecy Act Reports, and Banks' Costs to Comply with the Act VariedGAO-20-574: Published: Sep 22, 2020. Publicly Released: Sep 22, 2020.
Sep 4, 2020
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Bank Supervision:
FDIC Could Better Address Regulatory Capture RisksGAO-20-519: Published: Sep 4, 2020. Publicly Released: Sep 4, 2020.
Jul 21, 2020
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Financial Company Bankruptcies:
Congress and Regulators Have Updated Resolution Planning RequirementsGAO-20-608R: Published: Jul 21, 2020. Publicly Released: Jul 21, 2020.
Jul 6, 2020
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Public Companies:
Disclosure of Environmental, Social, and Governance Factors and Options to Enhance ThemGAO-20-530: Published: Jul 2, 2020. Publicly Released: Jul 6, 2020.
Apr 30, 2020
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Priority Open Recommendations:
Department of the TreasuryGAO-20-549PR: Published: Apr 23, 2020. Publicly Released: Apr 30, 2020.
Apr 27, 2020
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Priority Open Recommendations:
Board of Governors of the Federal Reserve SystemGAO-20-499PR: Published: Apr 20, 2020. Publicly Released: Apr 27, 2020. -
Priority Open Recommendations:
Federal Deposit Insurance CorporationGAO-20-498PR: Published: Apr 20, 2020. Publicly Released: Apr 27, 2020.
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