This Week in Financial Regulation, December 16th

This Week in Financial Regulation, December 16th

News and Commentary

JDSupra’s legal news highlights Biden administrative appointments indicative of strong support for financial technology and hardened financial regulation.

American Action Forum president Douglas Holtz-Eakin is skeptical that releasing Fannie and Freddie from conservatorship and regulating through a consent decree would achieve the managerial and operational oversight necessary to contain their risks.

NY Fed economists detail the importance of bank reserve concentration measures representative of all reserves and the costs of all time high corporate indebtedness in the COVID-induced recession.

Peter Conti-Brown assesses the Treasury’s discontinuation of funding for the Fed’s emergency lending facilities in a Brookings article.

Cato’s James A. Dorn inspects legal and consequential defenses of emergency lending program termination concluding that although there is no CARES Act requirement to do so, sunsetting the programs may be justified by shifting fiscal decision-making back to Congress.

Economists look to price indicators of financial integration to analyze European financial stress in a VoxEU column. The composite measure has rebounded after an initial drop.


New Research

G. William Schwert documents the enormous growth of academic financial research over the last 46 years in a NBER paper.

Despite CARES Act benefits, a NBER paper by Robert L. Clark, Annamaria Lusardi, and Olivia S. Mitchell finds significant COVID-19 shock impacts on the economic health of Americans 45-75.

The Basel Committee’s latest monitoring report notes moderate leverage increase for banks in the Americas since 2011.

Òscar Jordà et al. at the San Francisco Fed observe that the cost of corporate debt appears when debt restructuring and liquidation are inefficient amidst a credit boom.

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By |2020-12-18T08:12:25-08:00December 18th, 2020|Blog, Financial Regulation|