Financial Regulation

Rent Check The Fed recently announced that they are keeping the Countercyclical Capital Buffer at zero. This goes against the advice of economists who argue that a higher CCyB would [...]

Last week, the Federal Reserve Board voted to keep the current countercyclical capital buffer (CCyB) at a flat zero: The Federal Reserve Board announced on Wednesday it has voted to [...]

Rent Check What good are accountability rules if they aren't followed? A recent report from the Government Accountability Office found that the Office of the Comptroller of the Currency's internal [...]

A report from the Government Accountability Office (GAO) on preventing regulatory capture within the Office of the Comptroller of the Currency (OCC) lists a number of ways the OCC’s accountability [...]

News and Commentary Gregg Gelzinis highlights five key questions that policymakers should be asking Federal Reserve Chairman Jay Powell. Concerns over capital levels and stress testing top his list. The [...]

Rent Check A new ECB paper finds that the imposition of more stringent capital requirements for banks lending to firms at risk of default incentivized banks to lend to "zombie [...]

One of the many symptoms (or, in some views, causes) of a general slowdown of dynamism and growth in developed economies is the prevalence of lending to “zombie firms,” where [...]

Rent Check Croaking Cassandra's Michael Reddel misstates the causes of moral hazards in the banking system. The underlying guarantee of a government bailout plays a far larger role in determining [...]

In their chapter on financial regulation in The Captured Economy, Brink Lindsey and Steven Teles argue that the moral hazard in our financial system created through a series of formal [...]