Senate Banking Committee Chairman Chris Dodd will propose a council of regulators — headed by the Treasury secretary — be created to monitor systemic risk across the financial spectrum.  Former Federal Reserve Bank examiner Mark Williams, who teaches finance in the School of Management is is author of “Uncontrolled Risk” about the fall of Lehman Brothers, says the regulators haven’t yet earned it.

“Before this important role is handed over, these regulators need to demonstrate they have fixed the gaps in bank oversight and early risk detection. Unfortunately, there have been no high-level changes at any of the U.S. regulatory agencies nor any independent reports completed indicating why our watchdogs did not bark.”

Contact Mark Williams, 617-358-2789, williams@bu.edu