News and Commentary
Vice President of Deutsche Bundesbank Claudia Buch describes the Financial Stability Board’s evaluations of too-big-to-fail reforms in a VoxEU column, stating that systemically important banks are better capitalized and more resilient for the COVID related recession than the 2008 financial crisis.
Katy O’Donnell reports for Politico that the Financial Stability Oversight Council’s review of the secondary mortgage market reveals the risk Fannie May and Freddie Mac pose to the financial system. Increased capital requirements for the entities were unanimously endorsed by the Council.
Anna Kovner and Antoine Martin of the New York Fed argue in the Liberty Street Economics blog that recent Federal Reserve credit based lending facilities are well suited to COVID’s macroeconomic shock.
Milton Harris, Christian Opp, and Marcus Opp find expressions for the composition of credit, enabling a novel framework for characterizing credit market outcomes.