Algonaut asks whether the Financial Services Oversight Council will have a direct line to banks’ chief risk officers; I’m sure the answer is yes. But I also think that won’t be enough. What I’d love to see — and this could be put in place directly by the major banks, without the need for any legislation at all — would be a regular formal meeting of all the big banks’ chief risk officers, where they can talk about all the systemic risks they’re worried about which require coordinated response. Does anything like that exist? Is there some way in which the FSOC or the Fed could use its moral suasion to make it happen?

Update: It turns out that the IIF has a Markets Monitoring Group, chaired by Jacques de Larosière, which meets 2-3 times a year with the aim of “bringing together observations and assessments of various developments to build a systemic picture of current risks and their potential negative impacts and seeking to mitigate those risks by encouraging member firms to take the Group’s findings into account in their risk management and collaborating closely with the official sector”. (From page 108 of this document.) Chances of it doing any good at all? Very slim, I’d say, but then again I’m biased against the IIF so I’ll admit I’m not an impartial observer.