Financial Regulation

Rent Check Daniel Tarullo on the history of financial regulation from the New Deal to Dodd-Frank. Research from the Chicago Fed finds the prevalence of non-traditional mortgages (e.g. those with [...]

One of the features of the financial system that makes it particularly tricky to regulate is financial innovation, where new securities or investments arrive on the scene (sometimes as a [...]

Writing in the Journal of Economic Perspectives, Daniel K. Tarullo offers a history of the changes made in financial regulation from the New Deal era to the post-crisis regulatory regime: [...]

Rent Check An IMF study analyzes what bank characteristics and investments contribute to idiosyncratic and systemic risk. Higher profitability creates "skin in the game" and thus an incentive to reduce [...]

A new paper from the International Monetary Fund analyzes the characteristics of a panel of over 400 international banks and finds what factors, beyond low levels of equity, influence a [...]

Rent Check Home values and young firm creation are strongly correlated, but when an increase in home values is driven by a bubble, the subsequent bust leads to a net [...]

Young firms (less than five years old), more so than small businesses, are important drivers of economic growth, particularly with respect to employing young people. Since many new businesses are, [...]

Rent Check How restrictions on access to the Fed's discount window in the 1930s led banks to de-risk their portfolios, creating a subsequent bank run. News and Commentary Growing corporate [...]

Banking crises follow a similar pattern throughout history. Banks make leveraged investments in the form of loans to businesses or individuals (in the latter case, usually homeowners), the borrowers are [...]

Rent Check How the interconnectedness of the financial sector in the lead-up to the Great Depression contributed to the propagation of systemic risk. One interesting finding: the Hoover-era Reconstruction Finance [...]