Home About Latest Browse RSS Advanced Search

Federal Reserve Bank of Philadelphia
Consumer Finance Institute discussion papers
How effective were the financial safety nets in the aftermath of Katrina?
Julia S. Cheney
Sherrie L. W. Rhine
Abstract

This paper describes the U.S. financial system’s response to the destruction caused by Hurricane Katrina and examines how financial safety nets helped meet consumers’ needs in the aftermath of the storm. Overall, we find that consumers who hold deposit accounts at financial institutions are less vulnerable to financial disruptions than individuals who do not have either a checking or a savings account (the unbanked). The federal banking regulators’ and financial institutions’ responses to Hurricane Katrina, the financial vulnerability of unbanked families to this unexpected catastrophic event, and how the American Red Cross, FEMA, and the Gulf States’ relief efforts supplied financial assistance to Katrina’s victims are also addressed. Finally, we present several strategies that can be pursued to further safeguard the U.S. population and the financial community against extraordinary events.


Download Full text
Cite this item
Julia S. Cheney & Sherrie L. W. Rhine, How effective were the financial safety nets in the aftermath of Katrina?, Federal Reserve Bank of Philadelphia, Consumer Finance Institute discussion papers 06-01, 2006.
More from this series
JEL Classification:
Subject headings:
Keywords: Hurricane Katrina; 2005 ; Unbanked
For corrections, contact Beth Paul ()
Fed-in-Print is the central catalog of publications within the Federal Reserve System. It is managed and hosted by the Economic Research Division, Federal Reserve Bank of St. Louis.

Privacy Legal