Senator Richard Shelby’s reforms look like a positive and balanced start at fixing the negative economic fallout created by the Dodd-Frank Act.
Astute members of Congress have been trying to determine whether the Financial Stability Board (FSB) regards its rules as binding on its members, including the United States. Congress should prohibit the Treasury and other agencies from implementing any of the FSB’s rules in the United States until the Treasury can provide an answer.
Our estimates show that supervisory restrictions have a large negative impact on bank loan growth after controlling for the impact of monetary policy, bank capital and liquidity conditions and any voluntary reduction in lending triggered by weak legacy loan portfolio performance or other bank losses.
Congress directed the Federal Housing Finance Agency (FHFA) how to set the g-fees Fannie Mae and Freddie Mac charge for guaranteeing mortgage-backed securities, but the FHFA didn’t follow the directions.
What if Fannie and Freddie had kept paying a 10% dividend and then been allowed to use any remaining profits to retire some of the senior preferred stock at par? Would this have resulted in paying off all the taxpayers’ investment? Nope.
The political uncertainty sired by elections tends to increase risk premia in corporate stock and bond markets.
Going off track around a crisis will likely have long-lived consequences for relative economic development.
In this article, I illustrate three approaches for calculating loss distributions and value-at-risk capital requirements in credit portfolios with obligor concentrations risk.
Covering a housing or banking story today? Here’s the latest from the experts on the AEI financial services team.
The year 1914 was a flexion point in history. Is Thiel right in supposing, or fearing, that 2007 was a flexion point too? There are unsettling indications that the answer is yes.