DOCSLIB.ORG

The Appropriations and Budget Process for Multilateral

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
The Appropriations and Budget Process for Multilateral Cambridge University Press 978-1-107-02804-3 - Money and Banks in the American Political System Kathryn C. Lavelle Index More information Index ABA.SeeAmerican Bankers and regulation of derivatives, 127 Association American Enterprise Institute, 23 adjustable-rate mortgages, 54, 180 American International Group (AIG), 193, 255 Administrative Procedure Act, 124, 150 and bailout, 196–197, 199 advocacy coalition, 10 failure of, 195–196 agencies of the federal government, 3, 25, 109. American political culture, 1–2, 31, 249 See also executive branch agencies; by aversion to concentration of economic individual agency power and political authority, 6, 13, and financial crisis of 2008, 188, 217 28–29, 40, 151–152 and policy process, 19–20, 110 defined, 4–5 agency capture, 8, 31, 159, 249.Seealso and institutional arrangement, 187 revolving door; lobbying; lobbyists and opposition to banks, 54–55 defined, 14–15, 130–133 American revolution, 40, 48 and relief for individuals, 206 American Securitization Forum, 22 agency debt, 140–141, 243, 255 Americans for Financial Reform, 260 AIG.SeeAmerican International Group America’s Community Bankers, 133 Aldrich, Nelson, 44, 45 appropriations bills, 90 Aldrich Plan, 45 appropriations committees, 92 Aldrich-Vreeland Act, 44, 45 ARMs.Seeadjustable-rate mortgages Allison’s models of the bureaucratic process, asset-backed commercial paper, 78 4–5, 6, 15.Seealsobureaucratic auto industry, 201 politics paradigm bailouts, 188, 202 and action channels, 83–85 success in lobbying Congress, 216 and actions across time frames, 109 and bargaining among agencies, 15, 34 Bachus, Spencer, 263 and financial crisis of 2008, 188, 253 bailouts, 96, 188.SeealsoBear Stearns; Alt-A mortgages, 72–73 American International Group (AIG); American Bankers Association, 22, 25 CIT bailout; GMAC; Citigroup; Bank and Congress, 157 of America; Troubled Asset Relief and creation of the Federal Reserve, 44 Program; auto industry and merger with thrift trade association, after-effects of, 254, 265 133 international, 225, 226, 227–228 political action committee, 24 political accountability for, 196–197, 199 293 © in this web service Cambridge University Press www.cambridge.org Cambridge University Press 978-1-107-02804-3 - Money and Banks in the American Political System Kathryn C. Lavelle Index More information 294 Index bailouts (cont.) Boeing, 21 and problems with individual borrowers, Born, Brooksley, 126–130 206 Brady, Kevin, 160 size of, 204–205, 209, 254, 255 Brady, Nicholas, 117–118 Bair, Sheila, 120, 215, 217, 256 branch banking, 26, 37, 69–70, 245 and reforms, 262 Bretton Woods Institutions, 220, 224, 241.See Baker, James, 116–117 also International Monetary Fund; Bank for International Settlements, 233–234, World Bank 240 Brown Brothers and Company, 38 Banking Act of 1933, 52, 99 Bryan, William Jennings, 43 Banking Act of 1935, 48 budget process.SeeCongress, budgeting banking industry, 26.Seealsoderegulation of system in; appropriations bills banking industry; shadow banking budget resolution, 90 industry bureaucratic politics paradigm, 29–30, 50.See changes after 2008, 68, 82–254 also Allison’s models of the changes in 1970s, 50 bureaucratic process in France, 27 and competing mandates of Fed, 136, 160 in Germany, 27–28 and components of the US government, 83, in Japan, 27–28 109 niches in, 56, 57, 67, 74, 104–105 and competition among agencies, 251 blurring among niches, 69 Treasury-State relationship, 244 and regulatory process, 110, 132–133 Dodd-Frank passage, 251–254 structure of, 9, 26–27, 254, 259 and financial crisis of 2008, 188, 190–191, banking operations, 1, 8–9 194, 213 as an intermediary, 58 and international standards, 234, 236–238 and creation of money, 138 and rulemaking, 125 Bank of America, 24, 131, 183, 193, 199 Bush, George H. W., 64, 117–118 and bailout, 200 Bush, (George H. W.) administration, 102, banks, 68, 69, 73 117–118 balance sheet of, 58–59, 82 Bush, George W., 66, 118–119, 178, 241 and closure, 120 and financial crisis, 197, 210 bank supervision, 142–145 Bush (George W.) administration, 112, charges for examination, 145–146, 157 118–119 and conflict of interest, 154 and financial crisis, 189, 194, 199, 209, 217 and regulatory consolidation, 148 business associations, 21–22 Barclays, 193, 199 in Germany and Japan, 27 Basel Committee, 2, 78, 220, 232–240 business cycle, 163, 172–173, 187.Seealso Basel I Agreement, 220, 233–235, 237 political business cycle Basel II Agreement, 220, 235–240 defined, 166 Basel III Agreement, 25, 220, 238–240 and financial politics, 267 Bear Stearns, 192, 199, 238 of future, 252 Bennett, Robert, 199 overview, 165–166 Bentsen, Lloyd, 117–118 and presidential action, 177 Bernanke, Ben, 95, 118–119, 150, 172, 213 business lobbies.Seelobbying; lobbyists and actions in financial crisis, 190–191, 196–197, 204, 217 CAMELS rating system, 143–144 as Fed Chair, 160, 202 campaign contributions, 5, 8–9, 20, 24–25 and reforms, 262, 266 and banking committees, 94 and swaps, 215 and end of Glass-Steagall, 102 BIS.SeeBank for International Settlements and policy process, 99, 249, 251, 267–268 Black Tuesday, 47 capital adequacy standards, 234, 235–236 Bland-Allison Act, 42 Carter, Jimmy, 53, 116 Blankfein, Lloyd, 190–191 CDOs.Seecollateralized debt obligations Blunt, Roy, 198 CDSs.Seecredit default swaps © in this web service Cambridge University Press www.cambridge.org Cambridge University Press 978-1-107-02804-3 - Money and Banks in the American Political System Kathryn C. Lavelle Index More information Index 295 CEA.SeeCouncil of Economic Advisers and Glass-Steagall, 99–100, 259 CEBS.SeeCommittee of European Banking and Volcker Rule, 212 Supervisors commercial paper, 78, 81 central bank.SeealsoFederal Reserve System; and structured finance, 77–78 European Central Bank Commercial Paper Funding Facility, 81, 82 American lack of, 14, 55 commercial paper markets, 101 Federal Reserve as, 48, 136, 137–138, 141, and Federal Reserve support of, 140, 199. 151 See also Commercial Paper Funding shift away from fiscal policy, 168, 186 Facility and finance ministry, 113 freeze in financial crisis, 192, 193–194 and role in crisis, 170–171 Committee of European Banking Supervisors, and role in monetarist thought, 167 232 certificates of deposit, 50 Commodity Exchange Act, 123, 125 CFPB.SeeConsumer Financial Protection Commodity Futures Modernization Act, Bureau 129–130 CFTC.SeeCommodity Futures Trading Commodity Futures Trading Commission, 17, Commission 123 checking accounts, 44, 53, 73 and changing role after Dodd-Frank, 253, history of, 41, 52 254, 259 checks and balances, 25 and congressional oversight, 98 Cheney, Dick, 197 and regulation of derivatives, 125–130, China, 242, 243–244.SeealsoStrategic 214–215 Economic Dialogue and regulation of swaps, 214 CIT bailout, 202–203 and relations among executive branch Citibank, 23, 24, 78, 225 agencies, 110, 122–123 Citigroup, 131, 190–191, 199, 237, 242 and role in policy process, 84 and bailout, 200 Community Reinvestment Act, 51, 54, 71, merger with Travelers, 103–104 104 and SEC lawsuit, 18–19 criticism of, 71, 125 Civil War, 34, 40, 43, 141 passage of, 51–52 aftermath of, 44 Comptroller of the Currency.SeeOffice of the and panic of 1861, 44 Comptroller of the Currency in retrospect, 187 conduits, 76, 81 Clearing House, 22, 45 Congress, 12.Seealsolegislation Clinton administration, 102, 117–118, 126, as branch of government that makes laws, 185–186 87, 150, 151 Clinton, Bill, 95, 102, 103, 117, 118, 173 budgeting system in, 87, 89–93, 116 and Commodity Futures Modernization and business cycle, 165 Act, 123 and Dodd-Frank, 215–216 and rulemaking process, 125 and end of Glass-Steagall, 103–104 Clinton, Hillary, 244 and geographic representation, 106 CMOs.Seecollateralized mortgage obligations and GSEs, 255 Cold War, 34, 224, 242 and international commitments, 242 collateralized debt obligations, 78, 180, 182, and role in policy process, 17, 19, 20, 28, 195–196 83, 105 collateralized mortgage obligations, 76, 77 and elections, 250 created, 70 and Federal Reserve, 135, 158–159, 168, commercial banks, 56 173–174, 186 changing charters, 146, 148 and regulators, 85–87, 133 competition with shadow banking system, and US Constitution, 13–14 74, 101 Congressional Budget and Impoundment and credit cards, 60 Control Act, 92 European, 229 Congressional Budget Office, 90, 200 and Federal Reserve System, 135, 152 congressional calendar, 188, 206 © in this web service Cambridge University Press www.cambridge.org Cambridge University Press 978-1-107-02804-3 - Money and Banks in the American Political System Kathryn C. Lavelle Index More information 296 Index congressional committees, 8, 89.Seealsoby Department of Housing and Urban individual committees Development, 65, 93 budget and taxation, 89–90, 92–93 affordable housing goals in, 72 jurisdiction, 89, 105–106, 253 deposit insurance, 24, 74, 139, 148–149, 215. overview, 86–87 See also Federal Deposit Insurance and regulation of derivatives, 127–128 Corporation and relations with presidential benefits of, 260 administrations, 108, 112 drawbacks of, 101, 119 and relations with the Federal Reserve, 96, depository banking, 61 98, 106–107 Depository Institutions Deregulation and congressional districts, 27 Monetary Control Act (DIDMCA), 51, Consumer Bankers Association, 22, 216 53–54, 69, 166 Consumer Financial Protection Bureau, 18, passed, 53 253, 254 depression, 166.SeealsoGreat Depression and auto dealerships, 216 deregulation of banking industry, 57, 181, created, 150 184.SeealsoDepository Institutions future of,
Load more

Recommended publications
  • Martin Van Buren: the Greatest American President
    SUBSCRIBE NOW AND RECEIVE CRISIS AND LEVIATHAN* FREE! “The Independent Review does not accept “The Independent Review is pronouncements of government officials nor the excellent.” conventional wisdom at face value.” —GARY BECKER, Noble Laureate —JOHN R. MACARTHUR, Publisher, Harper’s in Economic Sciences Subscribe to The Independent Review and receive a free book of your choice* such as the 25th Anniversary Edition of Crisis and Leviathan: Critical Episodes in the Growth of American Government, by Founding Editor Robert Higgs. This quarterly journal, guided by co-editors Christopher J. Coyne, and Michael C. Munger, and Robert M. Whaples offers leading-edge insights on today’s most critical issues in economics, healthcare, education, law, history, political science, philosophy, and sociology. Thought-provoking and educational, The Independent Review is blazing the way toward informed debate! Student? Educator? Journalist? Business or civic leader? Engaged citizen? This journal is for YOU! *Order today for more FREE book options Perfect for students or anyone on the go! The Independent Review is available on mobile devices or tablets: iOS devices, Amazon Kindle Fire, or Android through Magzter. INDEPENDENT INSTITUTE, 100 SWAN WAY, OAKLAND, CA 94621 • 800-927-8733 • [email protected] PROMO CODE IRA1703 Martin Van Buren The Greatest American President —————— ✦ —————— JEFFREY ROGERS HUMMEL resident Martin Van Buren does not usually receive high marks from histori- ans. Born of humble Dutch ancestry in December 1782 in the small, upstate PNew York village of Kinderhook, Van Buren gained admittance to the bar in 1803 without benefit of higher education. Building on a successful country legal practice, he became one of the Empire State’s most influential and prominent politi- cians while the state was surging ahead as the country’s wealthiest and most populous.
    [Show full text]
  • Jelena Mcwilliams-FDIC
    www-scannedretina.com Jelena McWilliams-FDIC Jelena McWilliams-FDIC Voice of the American Sovereign (VOAS) The lawless Municipal Government operated by the "US CONGRESS" Washington, D.C., The smoking gun; do you get it? John Murtha – Impostor committed Treason – Time to sue his estate… Trust through Transparency - Jelena McWilliams - FDIC Chair Theft through Deception - Arnie Rosner - American sovereign, a Californian — and not a US Citizen via the fraudulent 14th Amendment. Sovereignty! TRUMP – THE AMERICAN SOVEREIGNS RULE AMERICA! All rights reserved - Without recourse - 1 of 120 - [email protected] - 714-964-4056 www-scannedretina.com Jelena McWilliams-FDIC 1.1. The FDIC responds - the bank you referenced is under the direct supervision of the Consumer Financial Protection Bureau. From: FDIC NoReply <[email protected]> Subject: FDIC Reply - 01003075 Date: April 29, 2019 at 6:36:46 AM PDT To: "[email protected]" <[email protected]> Reply-To: [email protected] April 29, 2019 Ref. No.: 01003075 Re: MUFG Union Bank, National Association, San Francisco, CA Dear Arnold Beryl Rosner: Thank you for your correspondence, which was received by the Federal Deposit Insurance Corporation (FDIC). The FDIC's mission is to ensure the stability of and public confidence in the nation's financial system. To achieve this goal, the FDIC has insured deposits and promoted safe and sound banking practices since 1933. We are responsible for supervising state- chartered, FDIC-insured institutions that are not members of the Federal Reserve System. Based on our review of your correspondence, the bank you referenced is under the direct supervision of the Consumer Financial Protection Bureau.
    [Show full text]
  • History of Banking in the U.S. (9/30/2010) Econ 310-004
    History of Banking in the U.S. (9/30/2010) Econ 310‐004 Definitions • independent treasury – separation of bank and state • laissez faire – transactions between private parties are free from state intervention, including restrictive regulations, taxes, tariffs and enforced monopolies • mercantilism – alliance between government and certain privileged merchants • interstate branch banking – the ability of a bank to have branches in more than one state • intrastate branch banking – the ability of a bank to have multiple branches in the same state • unit banking – no interstate or intrastate branching • fractional currency – currency in denominations less than a dollar (e.g., 5¢, 10¢, 25¢, etc.) • bond collateral requirement – dollar for dollar banknote to state bond ratio • wildcat banking – fraudulent banks setup in wilderness that made it very hard to redeem notes • inelastic currency – inability of the system to convert deposits into banknotes Principles • Banking has always been one of the most regulated industries. • Branching allows diversification. o Assets: Without branching banks only loan locally, so when the local economy goes bad, many loans default at once. o Liabilities: Without branching banks only get deposits locally, so when the local economy goes bad, many customers withdraw at once. • The stability of the bank system effects the reserve rate, not the other way around. • Bond collateral requirement led to more bank panics due to inelastic currency. Alexander Hamilton early state banks • Secretary of the Treasury (Washington) • 1776‐1837 • formed United States Mint • regulation at state level • got Morris to form Bank of North America • no general incorporation for banks • started Bank of New York • 9/31 states outlawed banking • architect of 1st bank of the United States • some states setup monopoly banks • killed by Aaron Burr (VP) in a duel • some still chartered banks • 6 states tried deposit/note insurance Andrew Jackson • President of U.S.
    [Show full text]
  • Bank Regulation 101
    BANK REGULATION 101 PART 1: THE BASICS – HOW ARE BANKS STRUCTURED AND HOW DO AGENCIES PROVIDE OVERSIGHT? Feb. 17, 2021 11:00 a.m. – 12:15 p.m. EST Bank Regulation 101 PART 1: THE BASICS – HOW ARE BANKS STRUCTURED AND HOW DO AGENCIES PROVIDE OVERSIGHT? Feb. 17, 2021 | 11:00 a.m. – 12:15 p.m. EST Discussion Items 11:00 AM - Core Concept #1: What’s a Bank?........................................................................1 - Core Concept #2: The Structure of Bank Regulation ...........................................4 - Core Concept #3: Bank Holding Company (“BHC”) Powers & Activities .............7 - Core Concept #4: Prudential Regulation ...........................................................13 - Core Concept #5: Types of Banks & their Charters ...........................................20 - Core Concept #6: The U.S. Bank Regulators .....................................................29 - Core Concept #7: Examinations ........................................................................40 - Core Concept #8: Enforcement Actions ............................................................53 12:00 AM – 12:15 AM - Q&A Portion Core Concept #1: What is a Bank? What’s a “Bank”? • Although many definitions are possible, U.S. law and regulation generally view a “bank” as an entity that: • Takes deposits; • Makes loans; and • Pays CheCks and transaCts payments. • The U.S. bank regulatory framework takes as its primary point of foCus the first of these funCtions – deposit taking. • Generally, an entity must be Chartered and liCensed as
    [Show full text]
  • The Evolution of Fed Independence
    FEDERALRESERVE The Evolution of Fed Independence BY STEPHEN SLIVINSKI oday there is a consensus Wars, Depression, and How monetary policy that a central bank can best Dependence T contribute to good economic When the United States entered and central bank performance by pursuing price stabil- World War I in April 1917, the Federal ity — and that it should remain inde- Reserve almost instantly became the autonomy came pendent from political forces. In the primary vehicle for financing the war case of price stability, this understand- effort. The main function of the Fed of age ing evolved over decades of experi- during those war years was to lend ence. The notion of independence of money to banks to purchase “Liberty the central bank was more difficult to Loans” bonds from the U.S. Treasury. fulfill. They loaned the money at a discount- The original conception of the ed rate — not coincidentally lower Federal Reserve System when it was than the interest rate on the war bonds created in 1913 was meant to continue — to entice bond purchasers. After the spirit of the “independent treasury the war, the Federal Reserve Bank of system” that existed in the pre-Fed New York remained the official era. That system assumed that the U.S. fiscal agent of the U.S. Treasury Treasury would store its gold and Department. assets in its own vaults lest it unduly In the post-war years, the Fed influence the markets for credit and busied itself with maintaining the money. Ideally, Treasury meddling in newly reconstructed gold standard. what passed for monetary policy at the Its missteps in the wake of the stock time was to be avoided.
    [Show full text]
  • Antebellum Banking Regulation: a Comparative Approach
    ANTEBELLUM BANKING REGULATION: A COMPARATIVE APPROACH DISSERTATION Presented in Partial Fulfillment of the Requirements for the Degree Doctor of Philosophy in the Graduate School of The Ohio State University By Alka Gandhi, M.A. ***** The Ohio State University 2003 Dissertation Committee: Approved by Professor Richard H. Steckel, Advisor Professor Paul Evans ________________________ Advisor Professor J. Huston McCulloch Economics Graduate Program ABSTRACT Extensive historical and contemporary studies establish important links between financial systems and economic development. Despite the importance of this research area and the extent of prior efforts, numerous interesting questions remain about the consequences of alternative regulatory regimes for the health of the financial sector. As a dynamic period of economic and financial evolution, which was accompanied by diverse banking regulations across states, the antebellum era provides a valuable laboratory for study. This dissertation utilizes a rich data set of balance sheets from antebellum banks in four U.S. states, Massachusetts, Ohio, Louisiana and Tennessee, to examine the relative impacts of preventative banking regulation on bank performance. Conceptual models of financial regulation are used to identify the motivations behind each state’s regulation and how it changed over time. Next, a duration model is employed to model the odds of bank failure and to determine the impact that regulation had on the ability of a bank to remain in operation. Finally, the estimates from the duration model are used to perform a counterfactual that assesses the impact on the odds of bank failure when imposing one state’s regulation on another state, ceteris paribus. The results indicate that states did enact regulation that was superior to alternate contemporaneous banking regulation, with respect to the ability to maintain the banking system.
    [Show full text]
  • Once Bitten, Twice Shy: Rethinking the Federal Reserve’S Independence and Monetary Policy in the U.S
    ONCE BITTEN, TWICE SHY: RETHINKING THE FEDERAL RESERVE’S INDEPENDENCE AND MONETARY POLICY IN THE U.S. by Niveditha Prabakaran B.S. Mathematics-Economics, B.A. Politics and Philosophy School of Arts and Sciences 2011 Submitted to the Undergraduate Faculty of School of Arts and Sciences in partial fulfillment of the requirements for the degree of Bachelor of Philosophy University of Pittsburgh 2011 UNIVERSITY OF PITTSBURGH SCHOOL OF ARTS AND SCIENCES This thesis was presented by Niveditha Prabakaran It was defended on April 20, 2011 and approved by Steven Husted, Professor, Economics, University of Pittsburgh Thomas Rawski, Professor, Economics, University of Pittsburgh James Burnham, Professor, School of Business, Duquesne University Thesis Director: Werner Troesken, Professor, Economics, University of Pittsburgh ii ONCE BITTEN, TWICE SHY: RETHINKING THE FEDERAL RESERVE’S INDEPENDENCE AND MONETARY POLICY IN THE U.S. Niveditha Prabakaran, B.Phil University of Pittsburgh, 2011 Copyright © by Niveditha Prabakaran 2011 iii Once Bitten, Twice shy: Rethinking the Federal Reserve’s Independence and Monetary Policy in the U.S. Niveditha Prabakaran, B.Phil University of Pittsburgh, 2011 It is widely believed that the Federal Reserve played a central role in bringing about the biggest catastrophe in American history—the Great Depression. The literature is extensive in seeking to provide an explanation for the Federal Reserve’s policy errors. This paper offers a new interpretation on why such an event occurred by studying a heretofore-unexamined landmark court case. In 1928, a private citizen filed suit against the Federal Reserve Bank of New York for increasing discount rates; he sough a court injunction that would force the Federal Reserve to decrease rates.
    [Show full text]
  • OMW Sprague (The Man Who" Wrote the Book" on Financial Crises) And
    NBER WORKING PAPER SERIES O.M.W. SPRAGUE (THE MAN WHO “WROTE THE BOOK” ON FINANCIAL CRISES) AND THE FOUNDING OF THE FEDERAL RESERVE Hugh Rockoff Working Paper 19758 http://www.nber.org/papers/w19758 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 December 2013 This paper was prepared for a conference on alternatives to the Federal Reserve held at George Mason University on November 1, 2013. I thank the organizers of the conference George Selgin and Larry H. White; my discussant, David Wheelock; and other participants in the discussion for many helpful comments. Elmus Wicker and Eugene White read an earlier draft and made many helpful suggestions. The opinions expressed here and the remaining errors are mine. The views expressed herein are those of the author and do not necessarily reflect the views of the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peer- reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications. © 2013 by Hugh Rockoff. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including © notice, is given to the source. O.M.W. Sprague (the Man who “Wrote the Book” on Financial Crises) and the Founding of the Federal Reserve Hugh Rockoff NBER Working Paper No. 19758 December 2013 JEL No. B26,N1 ABSTRACT O.M.W. Sprague was America’s leading expert on financial crises when America was debating establishing the Federal Reserve.
    [Show full text]
  • Global Financial Crisis of 2007: Analysis of Origin & Assessment Of
    Global financial crisis of 2007 : analysis of origin & assessment of contagion to emerging economies : lessons & challenges for financial regulation Shazia Ghani To cite this version: Shazia Ghani. Global financial crisis of 2007 : analysis of origin & assessment of contagion to emerging economies : lessons & challenges for financial regulation. Economics and Finance. Université de Grenoble, 2013. English. NNT : 2013GRENE011. tel-00987627 HAL Id: tel-00987627 https://tel.archives-ouvertes.fr/tel-00987627 Submitted on 6 May 2014 HAL is a multi-disciplinary open access L’archive ouverte pluridisciplinaire HAL, est archive for the deposit and dissemination of sci- destinée au dépôt et à la diffusion de documents entific research documents, whether they are pub- scientifiques de niveau recherche, publiés ou non, lished or not. The documents may come from émanant des établissements d’enseignement et de teaching and research institutions in France or recherche français ou étrangers, des laboratoires abroad, or from public or private research centers. publics ou privés. 1 La crise financière de 2007 Analyse des origines et impacts macroéconomiques sur les économies émergentes. Quels sont les leçons et les défis de régulation financière ? Global Financial Crisis of 2007 Analysis of Origin & Assessment of Contagion to Emerging Economies Lessons & Challenges for Financial Regulation Présentée par Shazia GHANI Thèse dirigée par Faruk ÜLGEN 2 ACKNOWLEDGEMENTS It is a pleasure to thank the many people who made this thesis possible. I am profoundly indebted to my supervisor Mr ULGEN Faruk for his sound advice, his great patience, and hour‘s long attentiveness over the last three and half years for being a model of excellence in my research area.
    [Show full text]
  • GAO-15-365 Accessible Version, Bank Regulation: Lessons Learned
    United States Government Accountability Office Report to Congressional Addressees June 2015 BANK REGULATION Lessons Learned and a Framework for Monitoring Emerging Risks and Regulatory Response Accessible Version GAO-15-365 June 2015 BANK REGULATION Lessons Learned and a Framework for Monitoring Emerging Risks and Regulatory Response Highlights of GAO-15-365, a report to congressional addressees Why GAO Did This Study What GAO Found Weakness in federal oversight was one Past banking-related crises highlight a number of regulatory lessons learned. of many factors that contributed to the These include the importance of size of federal losses and the number of bank failures in banking-related · Early and forceful action. GAO’s past work on failed banks found that crises over the past 35 years— regulators frequently identified weak management practices that involved the including the 1980s thrift and banks in higher-risk activities early on in each crisis, before banks began commercial bank crises and the 2007– experiencing declines in capital. However, regulators were not always 2009 financial crisis. Resolving the effective in directing bank management to address underlying problems failures of banks and thrifts due to before bank capital began to decline and it was often too late to avoid failure. these crises resulted in estimated For example, examiners did not always press bank management to address costs to federal bank and thrift problems promptly or issue timely enforcement actions. insurance funds over $165 billion, as well as other federal government costs, · Forward-looking assessments of risk. The crises revealed limitations in such as taxpayer-funded assistance key supervisory tools for monitoring and addressing emerging risks.
    [Show full text]
  • The National Monetary Commission: American Banking’S Debt to Europe
    1 The National Monetary Commission: American Banking’s Debt to Europe Zack Saravay Honors Thesis Submitted to the Department of History, Georgetown University Advisor: Professor Katherine Benton-Cohen Honors Program Chairs: Professors Amy Leonard and Katherine Benton-Cohen 8 May 2017 2 Table of Contents ACKNOWLEDGEMENTS ........................................................................................................................ 3 INTRODUCTION ....................................................................................................................................... 4 HISTORIOGRAPHICAL REVIEW .................................................................................................................. 6 Creation of the Federal Reserve ........................................................................................................... 7 Progressive Era Economics ................................................................................................................ 13 BACKGROUND – THE NATIONAL BANKING SYSTEM (1863-1908) ......................................................... 15 CHAPTER I. ORIGINS OF THE NMC (1908) ...................................................................................... 25 THE BATTLE FOR CURRENCY REFORM ................................................................................................... 25 THE ALDRICH-VREELAND ACT ............................................................................................................... 28 COMPOSITION AND SCOPE OF
    [Show full text]
  • The Regulation of Private Money
    NBER WORKING PAPER SERIES THE REGULATION OF PRIVATE MONEY Gary B. Gorton Working Paper 25891 http://www.nber.org/papers/w25891 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 May 2019 Thanks to Bob DeYoung for comments and suggestions. Forthcoming in Journal of Money, Credit and Banking. The views expressed herein are those of the author and do not necessarily reflect the views of the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications. © 2019 by Gary B. Gorton. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including © notice, is given to the source. The Regulation of Private Money Gary B. Gorton NBER Working Paper No. 25891 May 2019 JEL No. G2,G21 ABSTRACT Financial crises are bank runs. At root the problem is short-term debt (private money), which while an essential feature of market economies, is inherently vulnerable to runs in all its forms (not just demand deposits). Bank regulation aims at preventing bank runs. History shows two approaches to bank regulation: the use of high quality collateral to back banks’ short-term debt and government insurance for the short-term debt. Also, explicit or implicit limitations on entry into banking can create charter value (an intangible asset) that is lost if the bank fails. This can create an incentive for the bank to abide by the regulations and not take too much risk.
    [Show full text]