This paper explores the evolution of American economic policy since the New Deal. It argues that an accumulation of statist institutions and policies since World War II have led to the latest financial crisis in the housing sector. The paper then makes proposals with respect to fiscal policy,...

This article asserts that, in dealing with the 2007-2009 financial crisis, the Federal Reserve Bank (Fed) has placed its role as monetary agency and de facto steward of the market for U.S. Treasury debt ahead of its statutory responsibility for ensuring the soundness of the private banks. This...

The paper looks at the changes in the Federal Deposit Insurance Corporation assessment process since the passage of the Dodd-Frank legislation. It outlines some of the changes made to the insurance premium rates as well as the calculation of the deposit assessment base, and examines how the...

The title “shadow banking system” sounds pejorative and certainly is in the minds of most people who work in or watch the business of money and credit. In the world of subprime real estate, abuse of private financial vehicles with insurance enhancements and ratings led to the collapse of the...

Since the collapse of the U.S. financial markets in 2008, Congress and the policy community have been engaged in a broad-based discussion about the housing market reform, including making significant changes to the operations of government sponsored entities (GSEs) such as Fannie Mae, Freddie...

Since the 1930s, when the U.S. Congress interposed government regulation of banks for market discipline, the role of the state in the American financial system has steadily grown. While politicians and executives from the financial services industry characterize the relationship as a...

This paper seeks to review events leading up to the financial crisis of 2008, including the massive government intervention into the U.S. financial markets, and then asks some questions and makes some recommendations about changes in specific areas of business practice and public policy as they...

This working paper reviews the work of the Financial Stability Oversight Council (FSOC) in terms of identifying potential systemic risk in the nonbank sector under authority from the Dodd-Frank Wall Street Reform Act of 2010. We discuss past efforts by the agencies represented within the FSOC to...

Despite the considerable media attention given to the collapse of the market for complex structured assets that contain subprime mortgages, there has been too little discussion of why this crisis occurred. The Subprime Crisis: Cause, Effect and Consequences argues that three basic issues are at...

This paper discusses the treatment of Ocwen Financial Corp by the Consumer Financial Protection Bureau (CFPB) since 2012 and also examines the actions of private investors. The paper suggests that the CFPB has been overly harsh in its treatment of Ocwen, both measured by the amount of fines and...