New Tech vs. New Deal

Professor Saule Omarova of Cornell Law School joins Present Value to discuss the mechanics of financial system regulation and the systemic risks posed by the development of financial technology ("fintech"). The sources of systemic risk in the modern, globalized financial system are numerous and often ill-understood. Omarova details how the fundamental logic of the U.S. financial regulatory structure focuses on the risk of individual financial institutions, but fails to adequately monitor the system-wide sources of risk that result from the increasing interconnectedness of financial institutions. She also outlines the risks to consumer privacy, currency, and financial system stability that the continued development of fintech poses to the modern economy. An expert in the financial regulatory regime in the United States following the Great Recession of 2008, Omarova has testified before the U.S. Senate Committee on Banking, Housing, and Urban Affairs and previously served as a Special Advisor to the U.S. Department of the Treasury to the Under Secretary for Domestic Finance.