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Speech
Fixing wholesale funding to build a more stable financial system
Remarks at the New York Bankers Association's 2013 Annual Meeting & Economic Forum, The Waldorf Astoria, New York City.
Newsletter
In the wake of financial reform: what's next for community banks?
The sixth annual Community Bankers Symposium, co-sponsored by the Federal Reserve Bank of Chicago and the Federal Deposit Insurance Corporation (FDIC), was held at the Chicago Fed on November 19, 2010. This article summarizes the key presentations and discussions at the conference.
Journal Article
Rehypothecation
How would you feel if even though you were making regular monthly payments, your mortgage bank sold your house? This may seem like an odd question, but this type of situation happens every day in financial markets in a practice known as rehypothecation. Although such practices may be hard for nontraders to understand, rehypothecation is widespread in financial markets. Following the crisis of 2007-2009, the Dodd-Frank Act put restrictions on rehypothecation for derivatives. To understand the scope of these restrictions, we need to understand the role of rehypothecation in financial trades. In ...
Speech
Resolving the unresolvable: the alternative pathways to ending too big to fail
Remarks at the International Insolvency Institute 13th Annual Conference, Columbia University Law School, New York City.
Speech
A new era of bank supervision
Remarks at the New York Bankers Association Financial Services Forum, New York City.
Journal Article
Capital requirements for financial firms
One of the reforms proposed for preventing financial crises is to require financial institutions to hold more capital. There are a number of unresolved issues related to such a requirement, ranging from the costs of increased capital requirements to the best way to structure them. Some of this research was presented at a recent conference, and we discuss the major findings in this Commentary.
Speech
Introductory remarks for the Panel on Regulating Financial Markets: lessons from crisis management
Introductory Remarks for the Panel Discussion Sponsored by the Heller-Hurwicz Economics Institute and the Economic Club of Minnesota at the University of Minnesota, Minneapolis.
Journal Article
An end to too big to let fail? The Dodd-Frank Act's orderly liquidation authority
One of the changes introduced by the sweeping new financial market legislation of the Dodd?Frank Act is the provision of a formal process for liquidating large financial firms?something that would have been useful in 2008, when troubles at Lehman Brothers, AIG, and Merrill Lynch threatened to damage the entire U.S. financial system. While it may not be the end of the too-big-to-fail problem, the orderly liquidation authority is an important new tool in the regulatory toolkit. It will enable regulators to safely close and wind up the affairs of those distressed financial firms whose failure ...
Journal Article
Central view: on the \\"too big to fail\\" debate: implications of the Dodd-Frank Act
It is common knowledge that the banking industry has become increasingly consolidated over the past 25 years. In 1990, prior to a number of banking law changes, the nation housed around 12,500 charters. Today, there are roughly 6,000 charters, with consolidated assets of the top 10 U.S. banking firms representing approximately 64 percent of U.S. banking assets. Without question, operations of these large firms magnified the financial crisis, emphasizing their systemic importance. The resulting landmark legislation?the Dodd-Frank Act?is intended to reduce systemic risk and, ultimately, end ...