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Journal Article
Checks enter the electronic age
Journal Article
MBS Real Estate Investment Trusts: A Primer
This article examines those real estate investment trusts (REITs) that invest predominantly in mortgage-backed securities (MBS) and fund themselves with repurchase agreements (repos)---so-called mortgage REITS, or mREITs. mREITs grew quite rapidly after the financial crisis that began in 2008 and have come to be significant players in the MBS and repo markets. We review how they operate, how they are regulated, their recent growth, the risks they face, how they manage these risks, and the dangers they may pose to the broader economy.
Journal Article
Top performing small banks: making money the old-fashioned way
Although the profitability of U.S. small banks shrank in the 1980s, two percent of these banks remained highly profitable by emphasizing basic banking, namely acquiring low-cost funds and making low-risk investments.
Journal Article
Banking and commerce : tear down this wall?
Working Paper
mREITs and their risks
This paper examines the history of mREITs and their broader role in the REIT industry. Additionally, it reviews how mREITs operate, how they are regulated, the risks they face, how they manage these risks, and the dangers they pose for the broader financial system.
Working Paper
How large has the federal financial safety net become?
Legislative and regulatory actions taken in response to the financial turmoil which occurred between 2007 and 2009 expanded the extent to which financial institution liabilities were protected by federal government guarantees: i.e., these actions expanded the federal financial safety net. How large has the safety net become? Walter and Weinberg (2002) measured and examined the size of the safety net as it stood in 1999. We estimate the size of the safety net as of the end of 2008, after the creation of a number of government programs meant to back financial liabilities. We use methods similar ...
Journal Article
Fifth district bank performance
A review of District banks 1989 financial measures, including net interest margin, loan and lease loss provision, noninterest income and expense, taxes, profits, and capital. In general, District banks outperformed banks nationally.
Journal Article
Orderly liquidation authority as an alternative to bankruptcy
In response to the financial crisis of 2007, Congress created the Orderly Liquidation Authority (OLA) as part of its overarching financial regulatory reform bill, the Dodd-Frank Act. The OLA's provisions are aimed at simultaneously addressing two conflicting goals---mitigating systemic risk, which is thought to emerge when large financial firms enter the bankruptcy process, while also minimizing moral hazard, which arises when investors believe that firms are likely to be granted a government bailout to save them from bankruptcy and prevent systemic problems. In this article, we review the ...
Journal Article
Antitrust analysis in banking : goals, methods, and justifications in a changed environment
During recent decades banking markets have changed considerably. Nevertheless, banking antitrust analysis continues to follow the same basic philosophy laid down 40 years ago by the Supreme Court. Does the change in banking markets imply the need to alter antitrust analysis in banking? This article reviews the methods of antitrust analysis and discusses justifications for them. The article concludes that the means of analysis continues to make sense regardless of a changed environment.
Journal Article
Opinion: Mixing banking and commerce