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Journal Article
What reforms are needed to improve the safety and soundness of the banking system?
To further improve bank safety and soundness in the years ahead, the author makes two recommendations: that banks be examined and rated specifically on their organizational complexity and that systemically important banks that are too big to resolve quickly be recapitalized according to a model that is known in advance by their competitors and by the general public.
Report
Vanquishing too big to fail
The Federal Reserve Bank of Dallas balanced myriad roles in 2012, stepping up outreach efforts, banking supervision responsibilities, research production and educational programs during a challenging period for the economy.
Report
Leveling the Playing Field
Financial reform must be redirected. The government?s financial safety net for the biggest banks should cover only their essential banking activities and their role in the payments system. Once that occurs, market discipline can reassert itself, and all institutions ?large and small?can compete on a more level playing field.
Report
Choosing the road to prosperity: why we must end too big to fail—now
The too-big-to-fail institutions that amplified and prolonged the recent financial crisis remain a hindrance to full economic recovery and to the very ideal of American capitalism. It is imperative that we end TBTF.
Journal Article
Fed intervention: managing moral hazard in financial crises
At the end of September 2008, U.S. policymakers had been working for more than a year to contain the shock waves from plunging home prices and the subsequent financial market turmoil. For the Federal Reserve, the crisis has given new meaning to the adage that extraordinary times call for extraordinary measures. The central bank has dusted off Depression-era powers and rewritten old rules to address serious risks to the global financial system.
Journal Article
Assessing the costs and consequences of the 2007–09 financial crisis and its aftermath
There are few estimates of what society gave up due to the crisis: Our conservative estimate is $50,000 to $120,000 for every U.S. household.
Journal Article
Gauging the odds of a double-dip recession amid signals and slowdowns
Public sentiment says the recession isn't over. Never mind that the National Bureau of Economic Research (NBER), the arbiter of recessions, declared that the Great Recession of 2008 and 2009 officially ended in June 2009. An unrelenting pessimism constrains the recovery as consumers spend reluctantly while paying down debt, gripped by persistent fears of unemployment. The economy grew at a 2.5 percent annualized pace in the third quarter, according to the second estimate of real gross domestic product (GDP), a moderate improvement after two quarters of decelerating growth during the recovery. ...
Journal Article
Regulatory and monetary policies meet "too big to fail"
In 2010, the U.S. economy has been showing signs of pulling out of its tailspin. But questions remain about why it took so much monetary policy firepower to deal with the crisis.
Journal Article
From complacency to crisis: financial risk taking in the early 21st century
During the first half of this decade, the belief that new financial products would adequately shield investors from risk encouraged financial flows to less creditworthy households and businesses. By late 2006, U.S. financial markets were flashing warning signals of a potential financial crisis. ; In a sign that investors had become too complacent, risk premiums had all but vanished in junk bond and emerging-market interest rate spreads. Then, conditions changed abruptly. In the important and usually stable market for asset-backed commercial paper, premiums on three-month paper over Treasury ...
Journal Article
Money and inflation in a deregulated financial environment