We invite you to join us for this year’s international conference on housing risk — cosponsored by the Collateral Risk Network and AEI International Center on Housing Risk — which will focus on new mortgage and collateral risk measures and their applications.
Perhaps the Fed’s hyper-expanded balance sheet gamble and credit allocation will be judged by future historians as a success. This is a matter of uncertainty. I’d guess the chances are less than 50 percent. On the other side, after the asset inflations end, I’d guess is that there is a greater than 50 percent chance that the historians of the future will give the post-crisis Fed a Bronx cheer.
When faced with uncertainty, we instinctively find comfort when our opinions and actions agree with those we respect. In short, a prudent banker is one who goes broke when everybody else goes broke! As long as prudence in practice means doing what other people do, both as bankers and regulators, periodic crises are inevitable.
It would be rational to evaluate the outcomes of all past decisions exclusively on their expected future payoffs and costs and not on the past, which should be irrelevant. Reality proves however that most people are not rational.
The list of the 25 biggest S&Ls in America in 1983, just three decades ago, contains many names which were famous in housing finance circles in those days. How many do you think still exist? Make your guess before you read the answer.
There is nothing in the least surprising about the failure and bailout of Banco Espírito Santo in Portugal. Anyone who has seen a few financial crises knows that one of their typical occurrences is for central banks and governments to offer assurances that things are all right, when in fact a disaster is approaching.
The power of bank living wills lies beyond what's written down on paper. Living wills are a gateway for regulators to change the company itself. If companies' living wills are not to regulators' liking, regulators can require the institutions to restructure, raise capital, reduce leverage, divest or downsize.
History shows that the FDIC cannot efficiently resolve a large bank unless it sells the bank to a larger healthy institution. Whole-bank purchase resolutions are what created many of today's "too-big-to-fail" institutions. The best use of annual Orderly Resolution Plans is to require the FDIC to plan for an efficient break-up of the largest banks in the FDIC bank resolution process.
We invite you to join us for two panel discussions on how Augustus created order from chaos 2,000 years ago, and what makes for durable domestic and international political systems in the 21st century.
Please join us for a book launch event and panel discussion about how a marketplace of education options can help today's students succeed in tomorrow's economy. Attendees will receive a complimentary copy of the featured book.
Please join us for a luncheon event in which our panel will discuss what conservatives can learn from how liberals talk and think about the safety net and where free-market economics, federalism, and social responsibility intersect to lift people out of poverty.