A deterioration in the link between the M2 monetary aggregate and GDP, along with large errors in predicting M2 growth, led the Board of Governors to downgrade the M2 aggregate as a reliable indicator of monetary policy in 1993. In this paper, we argue that the financial condition of depository...

In May 1995 the Federal Banking Agencies adopted major reforms to the implementation of the Community Reinvestment Act (CRA) to make the examination process more objective and performance-based, promote consistency, and reduce regulatory burden. This study presents tests of excess stock returns...

Deterioration in the link between M2 and GDP, along with large prediction errors, led the Federal Reserve to downgrade M2 as a reliable indicator in 1993. We argue that the financial condition of depository institutions was a major factor behind this unusual pattern of M2 growth. When...

Mortgage activity has gained importance over the past fifteen years as a greater mix of mortgage lenders and products has become available. Developments in the mortgage secondary market have been instrumental in increasing the liquidity and safety of mortgage lending activity, as well as...

Banks across the U.S., including the Eleventh Federal Reserve District, appear to be recovering from the financial crisis that began in mid-2007. The news is welcome because a healthy banking sector spurs economic growth by providing financing for businesses to expand investment spending and for...

Neiman Marcus, Harrah’s, Petco, J. Crew—these well-known names are among the holdings of companies owned or co-owned by private equity (PE) firms in the Federal Reserve’s Eleventh District. The region is home to more than 175 PE firms, including the world’s third-largest, Fort...