The Crash of 1987: a Legal and Public Policy Analysis
Total Page:16
File Type:pdf, Size:1020Kb
Load more
Recommended publications
-
A Financial System That Creates Economic Opportunities Nonbank Financials, Fintech, and Innovation
U.S. DEPARTMENT OF THE TREASURY A Financial System That Creates Economic Opportunities A Financial System That T OF EN TH M E A Financial System T T R R A E P A E S That Creates Economic Opportunities D U R E Y H T Nonbank Financials, Fintech, 1789 and Innovation Nonbank Financials, Fintech, and Innovation Nonbank Financials, Fintech, TREASURY JULY 2018 2018-04417 (Rev. 1) • Department of the Treasury • Departmental Offices • www.treasury.gov U.S. DEPARTMENT OF THE TREASURY A Financial System That Creates Economic Opportunities Nonbank Financials, Fintech, and Innovation Report to President Donald J. Trump Executive Order 13772 on Core Principles for Regulating the United States Financial System Steven T. Mnuchin Secretary Craig S. Phillips Counselor to the Secretary T OF EN TH M E T T R R A E P A E S D U R E Y H T 1789 Staff Acknowledgments Secretary Mnuchin and Counselor Phillips would like to thank Treasury staff members for their contributions to this report. The staff’s work on the report was led by Jessica Renier and W. Moses Kim, and included contributions from Chloe Cabot, Dan Dorman, Alexan- dra Friedman, Eric Froman, Dan Greenland, Gerry Hughes, Alexander Jackson, Danielle Johnson-Kutch, Ben Lachmann, Natalia Li, Daniel McCarty, John McGrail, Amyn Moolji, Brian Morgenstern, Daren Small-Moyers, Mark Nelson, Peter Nickoloff, Bimal Patel, Brian Peretti, Scott Rembrandt, Ed Roback, Ranya Rotolo, Jared Sawyer, Steven Seitz, Brian Smith, Mark Uyeda, Anne Wallwork, and Christopher Weaver. ii A Financial System That Creates Economic -
The European Payments Union and the Origins of Triffin's Regional Approach Towards International Monetary Integration
A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Maes, Ivo; Pasotti, Ilaria Working Paper The European Payments Union and the origins of Triffin's regional approach towards international monetary integration NBB Working Paper, No. 301 Provided in Cooperation with: National Bank of Belgium, Brussels Suggested Citation: Maes, Ivo; Pasotti, Ilaria (2016) : The European Payments Union and the origins of Triffin's regional approach towards international monetary integration, NBB Working Paper, No. 301, National Bank of Belgium, Brussels This Version is available at: http://hdl.handle.net/10419/173757 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen -
Wall St. and the Law: Customer Fund Protections After the Collapse of MF Global and Peregrine -- What Regulatory Changes Are Taking Place
E TUT WALL ST. AND THE LAW: I CUSTOMER FUND PROTECTIONS ST AFTER THE COLLApsE OF MF N GLOBAL AND PEREGRINE – WHAT REGULATORY CHANGES ARE TAKING PLACE Prepared in connection with a Continuing Legal Education course presented at New York County Lawyers’ Association, 14 Vesey Street, New York, NY presented on Tuesday, June 18, 2013. P ROGR A M C O - S P O N SOR : New York Law (NYLS) School Financial Services Law Institute P ROGR A M M OD E R A TOR : Prof. Ronald H. Filler, NYLS Professor of Law and, Director, Financial Services Law Institute, NYLS P ROGR A M F ac U L T Y : Steven Lofchie, Cadwalader Wickersham & Taft; Robert L. Sichel, Pacific Global Advisors; Gary DeWaal , Gary DeWaal & Associates (former Group General Counsel of Newedge) NYCLA-CLE I 2 TRANSITIONAL & NON-TRANSITIONAL MCLE CREDITS: This course has been approved in accordance with the requirements of the New York State Continuing Legal Education Board for a maximum of 2 Transitional & Non-Transitional credit hours: .5 Ethics; 1.5 PP This program has been approved by the Board of Continuing Legal Education of the Supreme Court of New Jersey for 2 hours of total CLE credit. Of these, 0 qualify as hours of credit for Ethics/Professionalism, and 0 qualify as hours of credit toward certification in civil trial law, criminal trial law, workers compensation law and/or matrimonial law. Information Regarding CLE Credits and Certification Wall Street and the Law June 18, 2013; 6:00 PM to 8:00 PM The New York State CLE Board Regulations require all accredited CLE providers to provide documentation that CLE course attendees are, in fact, present during the course. -
Banking Policy Issues in the 115Th Congress
Banking Policy Issues in the 115th Congress David W. Perkins Analyst in Macroeconomic Policy March 7, 2018 Congressional Research Service 7-5700 www.crs.gov R44855 Banking Policy Issues in the 115th Congress Summary The financial crisis and the ensuing legislative and regulatory responses greatly affected the banking industry. Many new regulations—mandated or authorized by the Dodd-Frank Wall Street Reform and Consumer Protection Act (P.L. 111-203) or promulgated under the authority of bank regulators—have been implemented in recent years. In addition, economic and technological trends continue to affect banks. As a result, Congress is faced with many issues related to the bank industry, including issues concerning prudential regulation, consumer protection, “too big to fail” (TBTF) banks, community banks, regulatory agency design and independence, and market and economic trends. For example, the Financial CHOICE Act (H.R. 10) and the Economic Growth, Regulatory Relief, and Consumer Protection Act (S. 2155) propose wide ranging changes to the financial regulatory system, and include provisions related to many of these banking issues. Prudential Regulation. This type of regulation is designed to ensure banks are safely profitable and unlikely to fail. Regulatory ratio requirements agreed to in the international agreement known as the Basel III Accords and the Volcker Rule are examples. Ratio requirements require banks to hold a certain amount of capital on their balance sheets to better enable them to avoid failure. The Volcker Rule prohibits certain trading activities and affiliations at banks. Proponents argue the rules appropriately balance the need for safety and soundness with regulatory burden. -
The Clearing House Interbank Payments System: a Description of Its Operation and Risk Management
No. 8910 THE CLEARING HOUSE INTERBANK PAYMENTS SYSTEM: A DESCRIPTION OF ITS OPERATION AND RISK MANAGEMENT by Robert T. Clair* Federal Reserve Bank of Dallas June 1989 Research Paper Federal Reserve Bank of Dallas This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library ([email protected]) t No. 8910 THE CLEARIIIGHOUSE IIITERBAIIK PAYI,IEI{TS SYSTEII: A DTSCRIPTIOXOF ITS OPERATIOI{AND RISKI.IA}IAGEI{II{T by Robert T. Clair* Federal ReserveBank of Dallas Jurn 198!l * Theviews expressed .in this article are solely thoseof the authorand shouldnot be attributed to the FederalReserve Bank of Dallas. or the FederalReserve System. The Clearing HouseInterbank Payments System: Descriptionof Its 0perationsand Risk Manaqement 1. General0vervjew of the System The Clearing HouseInterbank Payment Systenr (CHIPS) is a high-speed message-s\4itchingnetwork owned and operatedby the Newyork Clearing House Assoc'iation(NYCHA) to clear jnternationaldollar payments.Based 'in Newyork Cit.y, CHIPSwas developed in the late 1960sas an e'lectronic replacementfor a paper-basedpayment system, the PaperExchange Payment System (PEPS), PEPSprovided an effective clearjng arrangementbut the paper-based strtrcturewas unable to handlethe rapidly growingvolume of paynentsthat neededto be cleared. Thegrowth in paymentvolume was partial'iy the resu'lt of the growthof the Eurodollarmarket.l Thechange in foreign exchangerate r For a discussionof the causesfor the surge in the Eurodollar market,see Sarkjs J. Khoury,Dynamics of I nternati ona'lBank ing, Praeger1980,p.24-6. regine from fjxed to floating rates jn lg73 also ljkely jncreasedthe volumeof internationa.l paymentsthat neededto be cleared. In responseto the growingvolurne of internationdl paymentsthe NYCHA developedthe ClearingHouse Interbank Payments System (CHIPS). -
The Political Economy of Argentina's Abandonment
Going through the labyrinth: the political economy of Argentina’s abandonment of the gold standard (1929-1933) Pablo Gerchunoff and José Luis Machinea ABSTRACT This article is the short but crucial history of four years of transition in a monetary and exchange-rate regime that culminated in 1933 with the final abandonment of the gold standard in Argentina. That process involved decisions made at critical junctures at which the government authorities had little time to deliberate and against which they had no analytical arsenal, no technical certainties and few political convictions. The objective of this study is to analyse those “decisions” at seven milestone moments, from the external shock of 1929 to the submission to Congress of a bill for the creation of the central bank and a currency control regime characterized by multiple exchange rates. The new regime that this reordering of the Argentine economy implied would remain in place, in one form or another, for at least a quarter of a century. KEYWORDS Monetary policy, gold standard, economic history, Argentina JEL CLASSIFICATION E42, F4, N1 AUTHORS Pablo Gerchunoff is a professor at the Department of History, Torcuato Di Tella University, Buenos Aires, Argentina. [email protected] José Luis Machinea is a professor at the Department of Economics, Torcuato Di Tella University, Buenos Aires, Argentina. [email protected] 104 CEPAL REVIEW 117 • DECEMBER 2015 I Introduction This is not a comprehensive history of the 1930s —of and, if they are, they might well be convinced that the economic policy regarding State functions and the entrance is the exit: in other words, that the way out is production apparatus— or of the resulting structural to return to the gold standard. -
March 31, 2014 Board of Governors of the Federal Reserve System. 20Th Street and Constitution Avenue. Washington, D C, 2 0 5
March 31, 2014 Board of Governors of the Federal Reserve System. 20th Street and Constitution Avenue. Washington, D C, 2 0 5 5 1 Attention: Robert deV. Frierson, Esq. Secretary. Re: Docket No. R-1477, RIN No. AD 7100 AE-09 Regulation HH Docket No. OP-1478 Policy on Payment System Risk. Governors: The Clearing House Payments Company L.L.C. ("PaymentsCo") and The Clearing House Association L.L.C. ("Association" and, together with PaymentsCo, "The Clearing House") footnoteare please1 . d to comment on the Board's proposals to (i) amend its Regulation HH, Footnote2.which, amon g other things, sets risk-management standards for financial market utilities ("FMUs") that have been designated as systemically important by the Financial Stability Oversight Council ("FSOC") under section 804 of the Dodd-Frank Act. Footnoteand (ii) 3. amend its Policy on Payment System Risk ("PSR Policy"), Footnotewhich 4 applie. s to other payment systems (such as Fedwire) that the Board regards as systemically important. In both cases, the Board proposes to adopt the Principles for Financial Market Infrastructures ("PFMI"), which were adopted in 2012 by the Bank for International Settlements' Committee on Payment and Settlement Systems ("CPSS") and the Technical Committee of the International Organization of Securities Commissions ("IOSCO"). footnoteThe PFM 5. I were conceived as a successor to a number of standards that had been adopted over the years, including CPSS's Core Principles for Systemically Important Established in 1853, The Clearing House is the nation's oldest banking association and payments company. It is owned by the world's largest commercial banks, which collectively employ 1.4 million people in the United States and hold more than half of all U.S. -
NCLC, NCRC, and CRL Comments to the OCC Opposing Application Of
December 7th, 2020 Mr. Louis Gittleman Director for District Licensing Western District Office 1225 17th Street, Suite 300 Denver, CO 80202 RE: Figure Bank, National Association: Charter application Dear Director Gittleman: Please accept this comment from the National Community Reinvestment Coalition, the National Consumer Law Center® and the Center for Responsible Lending opposing the application from Figure Technologies for a national bank charter and to establish Figure Bank. The National Community Reinvestment Coalition (NCRC) consists of more than 600 community- based organizations, fighting for economic justice for almost 30 years. Our mission is to create opportunities for people and communities to build and maintain wealth. NCRC members include community reinvestment organizations, community development corporations, local and state government agencies, faith-based institutions, fair housing and civil rights groups, minority and women- owned business associations, and housing counselors from across the nation. NCRC and its members work to create wealth opportunities by eliminating discriminatory lending practices, which have historically contributed to economic inequality. Since 1969, the nonprofit National Consumer Law Center® (NCLC®) has used its expertise in consumer law and energy policy to work for consumer justice and economic security for low-income and other disadvantaged people, including older adults, in the United States. NCLC’s expertise includes policy analysis and advocacy; consumer law and energy publications; litigation; expert witness services, and training and advice for advocates. NCLC works with nonprofit and legal services organizations, private attorneys, policymakers, and federal and state government and courts across the nation to stop exploitive practices, help financially stressed families build and retain wealth, and advance economic fairness. -
Examining the Efficiency, Stability, and Integrity of the U.S
S. HRG. 111–922 EXAMINING THE EFFICIENCY, STABILITY, AND INTEGRITY OF THE U.S. CAPITAL MARKETS JOINT HEARING BEFORE THE SUBCOMMITTEE ON SECURITIES, INSURANCE, AND INVESTMENT OF THE COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS UNITED STATES SENATE AND THE PERMANENT SUBCOMMITTEE ON INVESTIGATIONS OF THE COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS UNITED STATES SENATE ONE HUNDRED ELEVENTH CONGRESS SECOND SESSION ON EXAMINING THE EFFICIENCY, STABILITY, AND INTEGRITY OF THE U.S. CAPITAL MARKETS DECEMBER 8, 2010 Printed for the use of the Committee on Banking, Housing, and Urban Affairs ( Available at: http://www.fdsys.gov/ U.S. GOVERNMENT PRINTING OFFICE 65–272 PDF WASHINGTON : 2011 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS CHRISTOPHER J. DODD, Connecticut, Chairman TIM JOHNSON, South Dakota RICHARD C. SHELBY, Alabama JACK REED, Rhode Island ROBERT F. BENNETT, Utah CHARLES E. SCHUMER, New York JIM BUNNING, Kentucky EVAN BAYH, Indiana MIKE CRAPO, Idaho ROBERT MENENDEZ, New Jersey BOB CORKER, Tennessee DANIEL K. AKAKA, Hawaii JIM DEMINT, South Carolina SHERROD BROWN, Ohio DAVID VITTER, Louisiana JON TESTER, Montana MIKE JOHANNS, Nebraska HERB KOHL, Wisconsin KAY BAILEY HUTCHISON, Texas MARK R. WARNER, Virginia JUDD GREGG, New Hampshire JEFF MERKLEY, Oregon MICHAEL F. BENNET, Colorado EDWARD SILVERMAN, Staff Director WILLIAM D. DUHNKE, Republican Staff Director DAWN RATLIFF, Chief Clerk WILLIAM FIELDS, Hearing Clerk SHELVIN SIMMONS, IT Director JIM CROWELL, Editor SUBCOMMITTEE ON SECURITIES, INSURANCE, AND INVESTMENT JACK REED, Rhode Island, Chairman JIM BUNNING, Kentucky, Ranking Republican Member TIM JOHNSON, South Dakota JUDD GREGG, New Hampshire CHARLES E. -
The Clearing House Meeting
Meeting Between Staff of the Federal Reserve Board and Representatives of The Clearing House December 10, 2020 Participants: Justyna Bolter, Jess Cheng, Alex Cordero, Lacy Douglas, Elena Falcettoni, Susan Foley, Mark Manuszak, Stephanie Martin, Zach Proom, Larkin Turman, Matthew West, and Krzysztof Wozniak (Federal Reserve Board) Philip Keitel and Rob Hunter (The Clearing House); Matthew Kane (JPMorgan Chase Bank, N.A.); Kelvin Chen and Jana Roemmich (Capital One); Duncan Douglass (Alston & Bird) Summary: Representatives from The Clearing House met with Federal Reserve Board staff to discuss their concerns about the small issuer exemption in Regulation II as it relates to partnerships between financial technology firms and banks. Attachment October 23, 2020 VIA EMAIL Matthew J. Eichner [email protected] Director — Division of Reserve Bank Operations and Payment Systems Board of Governors of the Federal Reserve System 20th Street and Constitution Avenue NW Washington, D.C. 20551 Re: Regulation II Circumvention & Recommended Actions Dear Mr. Eichner: The Clearing House Association, L.L.C.1 (“The Clearing House”) respectfully submits to the Board of Governors of the Federal Reserve System (the “Board”) the following observations for the Board’s consideration in exercising its rulemaking authority pursuant to the debit interchange fee restrictions prescribed by the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”), as contained in Section 920 to the Electronic Fund Transfer Act (“EFTA”), and implemented -
An American Perspective on the 1987 Stock Market Crash
U.S.Securities and Exchange Commission [N]@~~ Washington. D.C. 20549 (202) 272.2650 ~@~@@)~@ AN AMERICAN PERSPECTIVE ON THE 1987 STOCK MARKET CRASH Remarks to 10TH ASIAN SECURITIES ANALYSTS COUNCIL CONFERENCE sponsored by Research Institute of Investment Analysts Malaysia The Kuala Lumpur Stock Exchange July 19, 1988 Shangri-La Hotel Kuala Lumpur, Malaysia Charles C. Cox Commissioner Securities and Exchange Commission washington, D.C. 20549 The views expressed herein are those of Commissioner Cox and do not necessarily represent those of the Commission, other Commissioners or the staff. Good Afternoon, As we are all aware, stock prices throughout the world fell precipitously last October, in a wave of selling unparalleled in the experience of most of us here today. Prices have recovered since then and are high by any standards other than those set in 1987. In some places, they are high by even those standards. In the next half hour or so, I will offer some remarks on what I believe we should make of the price plunge, how its causes have been analyzed in the united states, and what steps have been taken to cope with such situations in the future. I. First we should be clear about our objectives. Too much of the discussion about the stock market, it seems to me, mistakes signs for substance. It is not enough, for instance, simply to assume that high stock prices are good. They are signs, perhaps, that investors expect good things for the economy, but whether they are intrinsically good depends upon whether they lead to an efficient allocation of economic resources. -
Stock Market Crash
Stock market crash Black Monday (1987) on the Dow Jones Industrial Average A stock market crash is a sudden dramatic decline of stock prices across a significant cross-section of a stock market. Crashes are driven by panic as much as by underlying economic factors. They often follow speculative stock market bubbles. Stock market crashes are social phenomena where external economic events combine with crowd behaviour and psychology in a positive feedback loop where selling by some market participants drives more market participants to sell. Generally speaking, crashes usually occur under the following conditions: a prolonged period of rising stock prices and excessive economic optimism, a market where P/E ratios exceed long-term averages, and extensive use of margin debt and leverage by market participants. There is no numerically-specific definition of a crash but the term commonly applies to steep double- digit percentage losses in a stock market index over a period of several days. Crashes are often distinguished from bear markets by panic selling and abrupt, dramatic price declines. Bear markets are periods of declining stock market prices that are measured in months or years. While crashes are often associated with bear markets, they do not necessarily go hand in hand. The crash of 1987 for example did not lead to a bear market. Likewise, the Japanese Nikkei bear market of the 1990s occurred over several years without any notable crashes. Wall Street Crash of 1929 Main article: Wall Street Crash of 1929 The most famous crash, the Wall Street Crash of 1929, happened on October 29, 1929.