News and Commentary
Douglas Holtz-Eakin, president of the American Action Forum, published a blog post about the dangers of allowing Fannie Mae and Freddie Mac to resume operations without the appropriate capital reserves.
On a related note, an article by Hannah Lang in American Banker analyzes the decision to allow Fannie Mae and Freddie Mac to retain profits for the first time since 2012.
Kurt Schacht has an article in The Hill detailing the risks faced by the next potential recession, and the lessons to take away from the previous one.
The Bank Policy Institute has issued a statement on the Federal Reserve’s plans to require a new accounting standard for stress testing called “CECL”.
A column in Vox EU asks whether banks would reduce portfolio concentration in response to reforms, and whether they would reduce exposures to sovereign credit risk.
A paper published in the the American Economic Journal looks at a model examining the transition from “normal” states to systemic risk states, with a financial intermediary sector subject to an equity capital constraint.
NBER published a study that looks at how deregulation of private equity markets has lead to a declining trend in IPOs.