Another Urban Myth
An alternative narrative is that the financial crisis was caused by U.S. government housing policies that helped create 25 milion subprime and Alt-A mortgages--47 percent of all U.S. mortgages--which are currently defaulting at unprecedented rates.
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The Obama administration's proposal for a resolution authority for nonbank financial firms has a fundamental flaw.
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The administration's proposal for regulating the credit default swaps market is unlikely to reduce systemic risk, and may in fact increase it.
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The Administration's Consumer Financial Protection Agency
The administration's proposal for a Consumer Financial Protection Agency (CFPA) promises to be one of the most comprehensive and controversial pieces of regulatory legislation ever presented to Congress.
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A Case for a Systemic Risk Adviser and against a Systemic Risk Regulator
A "systemic risk adviser" independent enough to point out the systemic risks being created by the government's financial actions and policies, in addition to those of private financial actors, might be a useful institution.
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The Bank Stress Tests Buy Time
The stress tests boosted confidence in U.S. banks, suggesting that earlier disclosure of bank balance sheet conditions would have stabilized markets sooner.
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Treasury's Plan for Financial Restructuring
Neither actual conditions in the financial markets nor historical patterns call for the systemic risk and resolution system envisioned by the Obama administration's financial system reform proposal.
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Casting the Fed as a Systemic Risk Regulator
There is an emerging consensus that the Fed should become a systemic risk regulator, but this is a bad idea, both because of the Fed's current mission and the nature of systemic risk.
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The Group of Thirty Report
Why should regulation be extended to most of the major players in the financial system when it has been a consistent failure for banks?
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Although thecredit default swapmarket can be improved, excessive restrictions on it would create considerably more risk than it would eliminate.
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