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We evaluate the effects of the 2009 Home Affordable Modification Program (HAMP) that provided intermediaries with sizeable financial incentives to renegotiate mortgages. HAMP increased intensity of renegotiations and prevented substantial number of foreclosures but reached just one-third of its...
Persistent link: https://www.econbiz.de/10009697769
We model the behavior of dealers in Over-the-Counter (OTC) derivatives markets where a small number of dealers trade with a continuum of heterogeneous clients (hedgers). Imperfect competition and (endogenous) default induce a familiar trade-off between competition and risk. Increasing the number...
Persistent link: https://www.econbiz.de/10009668404
A 2012 paper by Goodhart, Kashyap, Tsomocos, and Vardoulakis (GKTV) proposes a dynamic general equilibrium framework that provides a conceptual - and to some extent quantitative - framework for the analysis of macroprudential policies. The distinguishing feature of GKTV's paper relative to any...
Persistent link: https://www.econbiz.de/10009669924
This study analyzes current regulation with respect to the use of derivatives and leverage by mutual funds in the U … that under existing derivative and leverage regulation, funds in both countries are able to increase risk by using …
Persistent link: https://www.econbiz.de/10010402939
Since July 2007 the world economy has experienced a severe financial crisis originating in the U.S. housing market. The crisis has subsequently spread to the financial sectors in European and Asian economies and led to a severe worldwide recession. The existing literature on financial crises...
Persistent link: https://www.econbiz.de/10003843236
accidents and explosions. Following each calamity, regulation takes the blame. The regulatory system is too slow or too lax. Or … system today – but in truth, regulation is far less clearly to blame for the nation's problems than most of us think. In this … regulation, as politicians and the public inevitably seek something to blame when calamities occur. Yet regulation manages risk …
Persistent link: https://www.econbiz.de/10013096820
-the-counter derivative regulation. Many of the Dodd-Frank statutes and proposed rules go well beyond the relatively modest objectives agreed … of overly aggressive U.S. regulation. Regulatory arbitrage occurs as both U.S. and non-U.S. persons attempt to structure …
Persistent link: https://www.econbiz.de/10013065156
regulation by the Fed as standalone entities. Banks, central bankers, and national regulators from around the world have …
Persistent link: https://www.econbiz.de/10013014867
-offs between litigation and regulation as modes of governance, including how laws change under each regime over time. Data on 1 … approach (litigation in the UK, regulation in the US), even within the domain of M&A law. Subject to strong limits on external … regulation and litigation, even for otherwise similar nations in a similar context, and that a combination of interest groups …
Persistent link: https://www.econbiz.de/10013150915
Most corporate bond research on liquidity and dealer inventories is based on the USD-denominated bonds transactions in the US reported to TRACE. Some of these bonds, however, are also traded in Europe, and those trades are not subject to the TRACE reporting requirements. Leveraging our access to...
Persistent link: https://www.econbiz.de/10012842570