Global LEI review should flag Trump's gutting of US financial research unit

20 August 2018 7:25am
The Financial Stability Board’s review of obstacles to worldwide adoption of legal entity identifiers will be on target only if it identifies the Trump administration’s effort to cripple the US Office of Financial Research.

The OFR, created by the Dodd-Frank Act to detect systemic risks, has been a leader in calling for regulators to require firms to obtain the ID tags to enable global risk snapshots.

US regulators’ reluctance to pay heed and do anything more than encourage adoption — rather than mandate it — has caused America to fall behind European countries, giving it fewer tools for monitoring banks’ and funds’ exposure.