Search Results
Speech
The Financial Crisis: perspectives from a decade on: remarks to the Administrative and Banking Law Committees of the Association of the Bar of the City of New York, New York City
Remarks to the Administrative and Banking Law Committees of the Association of the Bar of the City of New York, New York City.
Journal Article
TARP beneficiaries and their lending patterns during the financial crisis
This paper provides a systematic analysis of the lending performance of U.S. commercial banks and savings institutions that received financial support through the Capital Purchase Program (CPP) established in October 2008. The authors combine U.S. Treasury data on recipients of the CPP with quarterly financial data for the entire population of depository institutions to reconstruct aggregate lending and gross credit flows (expansion and contraction). CPP institutions experienced a less severe lending contraction than non-CPP institutions for all types of loans and bank asset levels. The ...
Report
Federal Reserve liquidity provision during the financial crisis of 2007-2009
This paper examines the Federal Reserve's unprecedented liquidity provision during the financial crisis of 2007-2009. It first reviews how the Fed provides liquidity in normal times. It then explains how the Fed's new and expanded liquidity facilities were intended to enable the central bank to fulfill its traditional lender-of-last-resort role during the crisis while mitigating stigma, broadening the set of institutions with access to liquidity, and increasing the flexibility with which institutions could tap such liquidity. The paper then assesses the growing empirical literature on the ...
Speech
Managing crises without government guarantees—how do we get there?
Remarks at Banking Law Symposium 2011, Paris, France.
Journal Article
Breaking out of recession: gauging Texas’ response to Fed stimulus
From the time the U.S. recession began in December 2007 through the subsequent recovery, Texas and the Eleventh Federal Reserve District have outperformed the nation.While economic activity is better in Texas, it remains far from robust. And though Texas employment hasn?t fully reclaimed levels reached before the crisis, the other 11 Federal Reserve districts remain 3 to 8 percent below predownturn employment peaks as a postrecessionary disquiet lingers.
Working Paper
Addressing the pro-cyclicality of capital requirements with a dynamic loan loss provision system
The pro-cyclical effect of bank capital requirements has attracted much attention in the post-crisis discussion of how to make the financial system more stable. This paper investigates and calibrates a dynamic provision as an instrument for addressing pro-cyclicality. The model for the dynamic provision is adopted from the Spanish banking regulatory system. We argue that, had U.S. banks set aside general provisions in positive states of the economy, they would have been in a better position to absorb their portfolios? loan losses during the recent financial turmoil. The allowances accumulated ...
Working Paper
Raising capital when the going gets tough: U.S. bank equity issuance from 2001 to 2014
The authors studied bank equity issuance during 2001?14 by publicly traded U.S. banks through seasoned equity offerings (SEOs), private investment in public equity (PIPEs), and the Troubled Asset Relief Program (TARP). Results show that private investors were an active and important source of bank recapitalization in the United States as issuance through SEOs and PIPEs peaked in the recent crisis.
Journal Article
What's under the TARP?
The Financial Stability Plan, initiated under the belief that "[t]here is more risk and greater cost in gradualism than in aggressive action," has several features.
Working Paper
Do bank bailouts reduce or increase systemic risk? the effects of TARP on financial system stability
Theory suggests that bank bailouts may either reduce or increase systemic risk. This paper is the first to address this issue empirically, analyzing the U.S. Troubled Assets Relief Program (TARP). Difference-in-difference analysis suggests that TARP significantly reduced contributions to systemic risk, particularly for larger and safer banks located in better local economies. This occurred primarily through a capital cushion channel. {{p}} Results are robust to additional tests, including accounting for potential endogeneity and selection bias. Findings yield policy conclusions about the ...