Editor's Note: This is a monthly publication on economic trends and financial policy issues. In this publication you can read "The Longbrake Letter", an analysis of economic trends and conditions written by Bill Longbrake, as well as commentary on financial regulation and policy written by members of the law firm Barnett, Sivon & Natter, P.C., a Washington, DC based law firm that specializes in financial services law.

ISSUE: #02, June 2010

The Longbrake Letter
- Bill Longbrake
Bill's May economic outlook explores where GDP, employment, consumer spending and inflation may be headed and examines the forces and risks that are in play that will influence outcomes in coming months.

Systemic Risk: Can Legislation Prevent It?
- Raymond Natter
Raymond Natter's article explores the nature of systemic risk and raises the question of whether current legislative proposals successfully address this problem.

We Are Not Done Yet
- Robert Barnett
When H.R. 4173 becomes the law of the land later this summer, it will have created conditions for a massive number of regulations and studies to be processed, all by agencies many of whom will have had landmark changes in their current mission and others of whom will be newly created. As a result, the chances for a continuation of the process of changing financial services in the U.S. in this and subsequent Congresses remain high.

The Preemption Provisions in the Financial Reform Legislation: A Fair Compromise?
- Jim Sivon
The preemption provisions in the Senate version of the financial reform legislation represent a fair compromise between competing interests: banks preserve the Barnett case as the legal standard for preemption; States gain several limitations on the application of that standard and new enforcement powers; and consumers preserve benefits of uniform products and services.