The sub-prime crisis began in mid-2007 as a bursting of the US housing market bubble and became a truly global meltdown in 2008. Renewed instability in financial markets precipitated awareness of how policy makers must react to systemic failures. This paper discusses the primary policy issues...

There are many events that led up to the financial crisis of 2008. This study looks at the political policies in place before the crisis happened. Focusing on the decade and a half prior to the crisis, the incentives in the financial industry led to risk mitigation. This response to mitigate...

This paper considers the case for mortgage covered bonds as an alternative to the originate-to-distribute mortgage funding model. It argues that the economic incentives provided to market participants under the covered bonds model are less susceptible to moral hazard even while retaining the key...