Committee to Establish the
National Institute of Finance
Providing the data and analytic tools needed to safeguard the U.S. financial system
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The National Institute of Finance Proposal:  In the News and On the Web

Financial Times: "Better data is needed to regulate markets"  E-mail
Writing in the Financial Times, CE-NIF founding members Allan Mendelowitz and John Liechty argue that the 2008 crisis revealed the inadequacy of current data and analytical tools for understanding threats to financial stability.
SECURITIES INDUSTRY NEWS: Before Dealing With Systemic Risk, How About Getting Data on It?  E-mail
“Does anybody have the data in place to really deal with systemic risk?” asks John Liechty, associate professor of marketing and statistics at Penn State University’s Graduate School of Business.
INSIDE REFERENCE DATA: The Utility Track  E-mail

As regulatory debates focus on systemic risk, market participants are finding new ways to ensure data becomes part of the legislative agenda. Initiatives in both Europe and the US are focused on building new data infrastructures to mitigate risk and prevent future economic meltdowns.     Tine Thoresen reports.

INSIDE REFERENCE DATA: Learning From Past Mistakes  E-mail

The Committee for the National Institute of Finance (NIF), which has proposed the set-up of a central financial reference data repository headed by a new federal agency in the US to manage systemic risk, has continued its lobbying efforts in the past month. On the other side of the pond, there continues to be increased interest in the European Central Bank-championed initiative.

FINCRI ADVISOR: New Regulatory Body Promoted to Standardize Financial Data  E-mail

A small group of statisticians and economists has voluntarily formed a group to lobby for a "National Institute of Finance" to standardize and analyze data for the proposed systemic risk regulator. The idea is not part of the Obama financial reform plan. But the group is making headway fast.

AMERICAN BANKER: Out with the Outsourcing of Regulation  E-mail
Written by Allan I. Mendelowitz   
Wednesday, 12 August 2009 00:00
American Banker logo       Op-Ed Article published originally in American Banker, 12 August 2009

One of the fundamental flaws revealed by the financial crisis is that the U.S. government lacks the tools to monitor and regulate financial institutions and markets effectively. The most significant weakness is not a lack of legal authorities; it is the absence of necessary data and analytical capability. This cardinal lapse has been largely overlooked until now because critical components of effective regulation were often "outsourced."

ENDORSEMENT: American Statistical Association Endorses Call to Create the NIF  E-mail

ASA Seal.JPGWASHINGTON, DC (PRWEB) August 6, 2009 – The Board of Directors of the American Statistical Association (ASA), at its meeting here August 1, voted to endorse a proposal to create a National Institute of Finance (NIF). The proposal calls for the establishment of the NIF as an independent federal agency with the responsibility and authority to provide the data and analytic tools needed to safeguard the U.S. financial system.

The Board adopted the following statement in support of the NIF: “We believe a new data and analytic infrastructure is required to maximize the effectiveness of any financial regulatory system. In view of this reality and recognizing the current effort to reform the financial regulatory system, we add our voice to the call for the creation of a National Institute of Finance containing a Financial Data Center and an Analytic Research Center.”                                           Download full press release

AMERICAN BANKER: Financial Regulators Need Better Data  E-mail
Written by Allan I. Mendelowitz and John C. Liechty   
American Banker logo       Op-Ed Article published in American Banker, 25 March 2009

Last September top government officials confronted an excruciating choice. Lehman Brothers, one of America’s most important financial institutions, tottered on the brink of bankruptcy. Rescuing Lehman would signal to other large institutions that they, too, could count on an implicit government safety net, no matter how risky their financial excesses. However, allowing Lehman to fail risked setting off a cascade of bankruptcies and market disruptions.