This Week in Financial Regulation, March 19

This Week in Financial Regulation, March 19

Rent Check

Are Bernie Sanders claims about the $1 trillion 2008 Bailout correct? Regardless of if they made the taxpayers money, bailing out the banks was a government subsidy for financial institutions that did, by many estimates, exceed $1 trillion.


News and Commentary

AAF’s President, Douglas Holtz-Eakin, explains the structure of the multifamily housing financing divisions of Fannie and Freddie. Since each have divisions completely independent from their single-family mortgage business, there is an opportunity to reform each separately.

Jan Hannes Lang and Peter Welz look at the connection between household credit and financial crises. They find that unsustainable credit trends are reached about 5 years before a crisis.

The Fed and other regulators are attempting to revise their Volcker rule after complaints from the banking industry. The complaints were mostly aimed at a change in the rule that would prohibit some proprietary trading.

Meanwhile, the Competitive Enterprise Institute explains why the Volcker rule and other Dodd-Frank regulations are flawed.

Jane Ihrig outlines how bank liquidity requirements affect monetary policy. The massive increase in banking reserves since the financial crisis works well with the Federal Reserve’s preference for implementing monetary policy in a high-reserve environment.

SEC Commissioner Hester Peirce wrote in Cato Journal about the SEC and bitcoin. Instead of trying to guess what technologies will be successful in the future, regulators should be creating an environment where all innovators have a chance to thrive.


New Research

What is the best way to spur growth in low investment communities? A new paper from Harvard’s Joint Center for Housing Studies argues that the Community Reinvestment Act made huge strides in small business lending in communities with little banking activity.

A new study is out highlighting the financial industry’s role in the rise of Hitler and Nazis in Germany. In areas with high bank-failure rates, the Nazi party was more popular.

I didn't find this helpful.This was helpful. Please let us know if you found this article helpful.
By |2019-03-19T14:10:43-07:00March 19th, 2019|Blog, Financial Regulation|