Search Results
Journal Article
Are SBA loan guarantees desirable?
Over the last 10 years, the Small Business Administration has been responsible for well over $100 billion in small business credit extensions, more than any single private lender. This Commentary explores the motivations for such a large investment of taxpayer dollars.
Journal Article
Making the SAIF safe for taxpayers
A presentation of some of the options for recapitalizing the Savings Association Insurance Fund, with particular emphasis on merging it into the FDIC's Bank Insurance Fund.
Journal Article
The evolving role of the Federal Home Loan Banks in mortgage markets
The Federal Home Loan Banks are part of a system created by the federal government to promote home ownership. This Commentary looks at new initiatives undertaken by these government-sponsored enterprises to expand their role in financial markets-and the attendant implications for their balance sheets.
Journal Article
The national depositor preference law
A critical analysis of the probable effects of national depositor preference--a provision of the Omnibus Budget Reconciliation Act of 1993--showing that although the FDIC may experience some cost savings in the short term, the long-term benefits are likely to be greatly diminished.
Working Paper
Small firm credit market discrimination, SBA-guaranteed lending, and local market economic performance
We empirically test whether SBA-guaranteed lending has a greater impact on economic performance in markets with a high percentage of potential minority small businesses. This hypothesis is predicated on priors related to three overlapping assumptions. These three assumptions are: (1) The classic type of credit rationing developed in the seminal paper by Stiglitz and Weiss (1981) is more likely to occur in markets with a higher per capita percentage of minority small businesses because such markets are more likely to have more severe information asymmetry problems, (2) SBA-guaranteed lending ...
Journal Article
FDIC policies for dealing with failed and troubled institutions
A discussion of how the FDIC's policies for handling bank failures can have unintended, and undesirable, effects on the banking system.
Journal Article
Banking consolidation and correspondent banking
Banking consolidation, spurred by interstate branching deregulation, is changing markets' competitive structure. Policymakers and regulators have focused on the implications for customers in retail and wholesale markets rather than consolidation's impact on correspondent banking markets (where banks buy and sell inputs used to produce banking services). By studying the era of intrastate branching deregulation, the authors provide some insights on the implications of interstate branching for correspondent banking.
Working Paper
Deposit insurance and the cost of capital
The impacts of deposit insurance and forbearance on the costs and value of uninsured deposits and equity capital are shown under three regimes.
Journal Article
Equity, efficiency, and mispriced deposit guarantees
A discussion of federal deposit insurance, with the contention that it can be misused and can help destabilize the financial system by permitting insured institutions to take irresponsible risks.