Journal Article
The foreclosure crisis in 2008: predatory lending or household overreaching?
Fogel, Kathy; Yeager, Timothy J.; Ma, Liping; Lee, Wayne Y.; Emmons, William R.; Rorie, Deena (2011-07)
At least early in the financial crisis, the high rate of foreclosures seemed to be due more to households' overreaching than to predatory lending. A disproportionate number of those being foreclosed on were well-educated, well-off and relatively young people.
The Regional Economist , Issue July , Pages 12-14

Working Paper
Is the Federal Home Loan Bank system good for banks? a look at evidence on membership, advances and risk
Stojanovic, Dusan; Yeager, Timothy J.; Vaughan, Mark D. (2005)
Since the early 1990s, commercial banks have turned to Federal Home Loan Bank (FHLBank) advances to plug the gap between loan and deposit growth. Is this trend worrisome? On the one hand, advances implicitly encourage risk by insulating borrowers from market discipline. On the other, advances give borrowers greater flexibility to managing interest rate and liquidity risk. And access to FHLBank funding encourages members to reshape their balance sheets in ways that could lower credit risk. Using quarterly financial and supervisory data for banks from 1992 to 2000, we assess the effect of ...
Supervisory Policy Analysis Working Papers , Paper 2005-02

Journal Article
Down but not out: the future of community banks
Yeager, Timothy J. (1999-10)
The Regional Economist , Issue Oct

Working Paper
Economies of integration in banking: an application of the survivor principle
Yeager, Timothy J. (2004)
Despite the growing concentration of U.S. banking assets in mega-banks, most academic research finds that scale and scope economies are small. I apply the survivor principle to the banking industry between 1984 and 2002 and find that the so-called economies of integration are significant. These results hold after accounting for off-balance- sheet activities and after replicating the results at the holding company level. Regression analysis reveals that deregulation of branching restrictions, especially at the state level, played a significant role in allowing banks to exploit these economies. ...
Supervisory Policy Analysis Working Papers , Paper 2004-04

Journal Article
Are the causes of bank distress changing? can researchers keep up?
King, Thomas B.; Yeager, Timothy J.; Nuxoll, Daniel A. (2006-01)
Since 1990, the banking sector has experienced enormous legislative, technological, and financial changes, yet research into the causes of bank distress has slowed. One consequence is that traditional supervisory surveillance models may not capture important risks inherent in the current banking environment. After reviewing the history of these models, the authors provide empirical evidence that the characteristics of failing banks have changed in the past ten years and argue that the time is right for new research that employs new empirical techniques. In particular, dynamic models that use ...
Review , Volume 88 , Issue Jan , Pages 57-80

Journal Article
Is federal home loan bank funding a risky business for the FDIC?
Stojanovic, Dusan; Yeager, Timothy J.; Vaughan, Mark D. (2000-10)
Easy access to FHLB funds has helped community banks stay afloat in today's competitive markets, but could pose a risk to the FDIC's insurance fund.
The Regional Economist , Issue Oct , Pages 4-9

Journal Article
An imperfect crystal ball
Yeager, Timothy J.; Emmons, William R. (2002-01)
The futures market is not a perfect crystal ball. In some cases, it accurately forecasts what spot prices will be in the future. But not always.
The Regional Economist , Issue Jan. , Pages 10-11

Journal Article
The door is open, but banks are slow to enter insurance and investment arenas
Yeager, Fred C.; Yeager, Timothy J.; Harshman, Ellen (2005-10)
Congress opened the door five years ago for banks to enter the insurance and investment arenas, but the expected rush has yet to occur. That's probably fine with critics, who feared that the return of universal banks would bring back Depression-like instability.
The Regional Economist , Issue Oct , Pages 4-9

Working Paper
The Financial Modernization Act: evolution or revolution?
Yeager, Fred C.; Yeager, Timothy J.; Harshman, Ellen (2004)
The Gramm-Leach-Bliley Act (GLBA) removed the barriers that separated commercial banking from investment banking, merchant banking, and insurance activities. Did this legislation revolutionize the financial services industry by allowing Financial Holding Companies (FHCs) to exploit revenue efficiencies and cost economies, or did it merely formalize an evolutionary process of deregulation that was already well underway? Our evidence refutes the notion that the GLBA was a revolutionary event, at least in the short run. Using a combination of market and accounting data, we find that, to date, ...
Supervisory Policy Analysis Working Papers , Paper 2004-05

Working Paper
Scale economies and geographic diversification as forces driving community bank mergers
Yeager, Timothy J.; Emmons, William R.; Gilbert, R. Alton (2002)
Mergers of community banks across economic market areas potentially reduce both idiosyncratic and local market risk. Idiosyncratic risk may be reduced because the larger post merger bank has a larger customer base. Negative credit and liquidity shocks from individual customers would have smaller effects on the portfolio of the merged entity than on the individual community banks involved in the merger. Geographic dispersion of banking activities across economic market areas may reduce local market risk because an adverse economic development that is unique to one market area will not affect a ...
Supervisory Policy Analysis Working Papers , Paper 2002-02