Well, not quite. But they have (belatedly) “announced a new division of risk, strategy and financial innovation”, of which Professor Henry Hu will be director.
Hu’s qualifications? According to the press release, he holds a BS in Molecular Biophysics & Biochemistry, an MA in Economics and a JD law degree, all from Yale. Impressive, but that’s not all:
Professor Hu holds the Allan Shivers Chair in the Law of Banking and Finance at the University of Texas School of Law and has written on bank, derivatives, hedge fund, and mutual fund regulation, corporate governance, global competitiveness of U.S. derivatives markets, model risk, risk management, and swaps and other financial innovations.
More recently, Professor Hu was the lead author on a series of pioneering articles on the “decoupling” of debt and equity, its impact on corporate and debt governance and world systemic risk, and possible disclosure and substantive responses.
As for that newly-established Division of Risk, Strategy, and Financial Innovation:
The new division combines the Office of Economic Analysis, the Office of Risk Assessment, and other functions to provide the Commission with sophisticated analysis that integrates economic, financial, and legal disciplines. The division’s responsibilities cover three broad areas: risk and economic analysis; strategic research; and financial innovation.
“This new division will enhance our capabilities and help identify developing risks and trends in the financial markets,” said Chairman Schapiro. “By combining economic, financial, and legal analysis in a single group, this new unit will foster a fresh approach to exchanging ideas and upgrading agency expertise.”
The new division will perform all of the functions previously performed by OEA and ORA, along with the following: (1) strategic and long-term analysis; (2) identifying new developments and trends in financial markets and systemic risk; (3) making recommendations as to how these new developments and trends affect the Commission’s regulatory activities; (4) conducting research and analysis in furtherance and support of the functions of the Commission and its divisions and offices; and (5) providing training on new developments and trends and other matters.
Related links:
Financial innovation (what is it good for) – The Curious Capitalist