The Dodd-Frank Wall Street Reform and Consumer Protection Act established the Office of Financial Research (OFR) within the U.S. Treasury Department to improve the quality of financial data available to policymakers and to facilitate better and more sophisticated analysis of the financial system. The OFR recently delivered this report, “Asset Management and Financial Stability,” to the Financial Stability Oversight Council (Council) on ways that activities in the asset management industry could pose risks to the financial stability of the United States by creating, amplifying, or transmitting stress through the financial system. The OFR studied the activities of asset management firms and funds at the request of the Council. In developing the report, the OFR staff reviewed existing research, analyzed industry data, interviewed market participants, and consulted extensively with Council member agencies.
Click here to access the report.