News and Commentary
Jeff Hauser, in the Revolving Door Newsletter, discusses personnel changes related to financial regulation, including the removal of Comptroller Blake Paulson and Chief Operating Officer Robin Minor. This is part of an important ongoing effort to clean house and remove Trump holdovers.
A column in VoxEU examines why German private investment has been remarkably low, finding that German banking regulations prevent larger private investment. First, the geographic segmentation of the German credit market and restrictions on competition in those markets prevents small and medium businesses from switching banks. Second, Germany has special regulations which require public-sector lending. These two regulations combine to crowd out private sector investment.
A new analysis from VoxEU analyzes the role of natural disaster risk in the financial sector relative compared to more familiar risks in the financial sector. It finds that a public and private effort to support the mitigation of systemic risk in natural disasters is just as important as measure to mitigate systemic risk in finance.