Financial Regulation

Rent Check While Jamie Dimon is right that a free market system should be preferred, he is misguided in his claim that capital requirements interfere with that system. Instead, they [...]

In his annual report, J.P. Morgan Chase CEO Jamie Dimon gave a full-throated defense of the free-market capitalist system: There is no question that capitalism has been the most successful [...]

Rent Check A new NBER paper looks at how stress testing of central counterparts should better incorporate the "topography" of the financial sector with CCPs at the middle.   News [...]

While most of our discussion on financial regulation is centered on banks and bank holding companies (BHCs) it is the interconnectedness of the current financial system that is the main [...]

Rent Check Which banks hedge their risky investments? A new paper shows a positive correlation between the level of capital a bank has and how willing they are to hedge their [...]

Hedging, usually done through the use of derivative securities, is an important way for banks to manage risk in their investments. If, say, interest rates were to rise and the [...]

The problem with the financial system is not necessarily one of too much or too little regulation, but misregulation--our system is designed with implicit and explicit bailouts that enable leverage. [...]

Rent Check What should happen with Fannie Mae and Freddie Mac? Their conservatorship status gets in the way of making sound policy and poses a threat to the rule of [...]