News and Commentary
Hannah Lang previews the Federal Housing Finance Agency’s finalized capital requirements for Fannie May and Freddie Mac in American Banker. The requirements have risen since May as a result of the agencies’ increasing assets.
Douglas Holtz-Eakin of the American Action Forum recommends a leverage ratio requirement for Fannie May and Freddie Mac rather than the proposed risk-based capital requirements which could disincentivize Credit Risk Transfers.
NY Fed economists provide a COVID update on their banking stability models including one of capital vulnerability.
Biden’s financial regulatory transition teams signal stronger bank regulation reports the New York Times.
Marina Conesa Martínez, Giulia Lotti, and Andrew Powell synthesize the findings on global banking stability of their new paper in VoxEU, confirming prior evidence of lower network density’s resilience.
Tomáš Konečný and Lukáš Pfeifer detail the stabilizing effects of capital buffer’s restrictions on cross-border capital mobility, commonly referred to as ring fencing, for Vox EU.