Systemic Risk Regulation and the Myths of the 2008 Financial Crisis
The conventional story about the 2008 financial crisis is that, after the so-called “shadow banks” made too many risky bets, trouble at one large money market mutual fund (MMF) ignited a contagious run on other MMFs and it quickly spread throughout short-term credit markets. This contagion was only arrested, the story goes, after the federal government provided widespread financial guarantees. …
Fighting Back Against Runaway Regulators: A Story of Relentless Persistence
Biden Issues New COVID Mandate & Markets React
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Biden’s Comptroller Pick Will Decimate Community Banking
During my career at BB&T we frequently encountered government regulators who believed they knew best how we should operate and to whom we should be making loans. Most often, we had no choice but to reduce our lending activity because...
The Fed’s Doomsday Prophet Has a Dire Warning About Where We’re Headed
Thomas Hoenig doesn’t look like a rebel. He is a conservative man, soft-spoken, now happily retired at the age of 75. He acts like someone who has spent the vast majority of his career, as he has, working at one of the stuffiest and powerful institutions in America: the Federal Reserve Bank. Hoenig has all the fiery disposition that one might expect from a central banker, which is to say none at all. He unspools sentences methodically, in a measured way, never letting his words race ahead of his intended message. When Hoenig gets really agitated he repeats the phrase “lookit” a lot, but that’s about as salty as it gets. …
Why’s Washington Spending So Much Money? Blame a Faulty Understanding of ‘Rights’
The Founders believed rights entailed restrictions on government power. The dominant progressive view imagines rights as granted by government. …
Financial Regulators Ignore the Costs of Regulation
The U.S. financial regulatory agencies are tasked with stabilizing the financial system. They pursue this mission by monitoring the operations of financial companies and restricting their risk-taking activities. However, the lack of quantitative analysis in their rule-making process may prevent them from producing regulations that create net benefits for the financial system and the U.S. economy. …
