Financial Regulation

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 [...]

We have previously written on the difficulty of accounting for the costs of Fannie Mae and Freddie Mac in the federal budget. If you look at it from a purely [...]

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 [...]

Last week, Senator and Presidential Candidate Bernie Sanders made the claim: Not one major Wall Street executive went to jail for destroying our economy in 2008 as a result of [...]