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Category Archives: Financial System

Democratic House Staff Report on Fourth Anniversary of Dodd-Frank Act

Follow up to Report: Dodd-Frank Act Does Not End Too Big to Fail But Perpetuates It as Official Policy - today, the Democrat’s interpretation of the same subject – The Fourth Anniversary of the Dodd-Frank Wall Street Reform and Protection Act of 2010, Democratic Staff Report Prepared for Democratic Members of the House Committee on Financial Services - The HonorableContinue Reading

Subcommittee Finds “Basket Options” Misused To Dodge Billions In Taxes And Bypass Federal Leverage Limits

“Two global banks and more than a dozen hedge funds misused a complex financial structure to claim billions of dollars in unjustified tax savings and to avoid leverage limits that protect the financial system from risky debt, a Senate Subcommittee investigation has found. The improper use of this structured financial product, known as basket options, isContinue Reading

Impact of Fed Tapering Announcements on Emerging Markets

“This paper analyzes market reactions to the 2013–14 Fed announcements relating to tapering of asset purchases and their relationship to macroeconomic fundamentals and country economic and financial structures. The study uses daily data on exchange rates, government bond yields, and stock prices for 21 emerging markets. It finds evidence of markets differentiating across countries aroundContinue Reading

Central Bank Macroeconomic Forecasting during the Global Financial Crisis

The European Central Bank and Federal Reserve Bank of New York Experiences, July 2014 Number 680. Luci Alessi, Eric Ghysels, Luca Onorante, Richard Peach, and Simon Potter: “This paper documents macroeconomic forecasting during the global financial crisis by two key central banks: the European Central Bank and the Federal Reserve Bank of New York. The paper is the result of a collaborative effort between theContinue Reading

Comparing Bank and Federal Reserve Stress Test Results

Beverly Hirtle, Anna Kovner, and Eric McKay, New York Fed: “Stress tests have become an important method of assessing whether financial institutions have enough capital to operate in bad economic conditions. Under the provisions of the Dodd-Frank Act, both the Federal Reserve and large U.S. bank holding companies (BHCs) are required to do annual stress tests and toContinue Reading

Report: Dodd-Frank Act Does Not End Too Big to Fail But Perpetuates It as Official Policy

“House Financial Services Committee Chairman Jeb Hensarling (R-TX) and Oversight and Investigations Subcommittee Chairman Patrick McHenry (R-NC) today released a committee staff report [prepared by the Republican Staff of the Committee on Financial Services] that concludes the Dodd-Frank Act did not end “too big to fail” as the law’s supporters claim, but actually had theContinue Reading

Growing Deficits Over the Long Term Would Cause Federal Debt to Exceed 100 Percent of GDP by 2039

“Last week CBO released its latest report on the long-term budget outlook. (For a quick overview of the report, take a look at The 2014 Long-Term Budget Outlook in 26 Slides.) Previous blog posts have highlighted the projected imbalance in federal spending and revenues over the next 25 years. Today’s post explains how projected shortfalls would accumulateContinue Reading

New GAO Reports – African Growth Opportunity, Consumer Finance, State Department

AFRICAN GROWTH AND OPPORTUNITY ACT: Observations on Competitiveness and Diversification of U.S. Imports from Beneficiary Countries, GAO-14-722R:  Published: Jul 21, 2014. Publicly Released: Jul 21, 2014. CONSUMER FINANCE: Credit Cards Designed for Medical Services Not Covered by Insurance, GAO-14-570: Published: Jun 19, 2014. Publicly Released: Jul 21, 2014. STATE DEPARTMENT: Implementation of Grants Policies Needs Better Oversight, GAO-14-635: Published: Jul 21, 2014. PubliclyContinue Reading

New GAO Reports – Bureau of the Fiscal Service, Tax Policy

Management Report: Improvements Are Needed in the Bureau of the Fiscal Service’s Information Systems Controls, GAO-14-693R: Published: Jul 18, 2014. Publicly Released: Jul 18, 2014: “During GAO’s audit of the Schedules of Federal Debt Managed by the Department of the Treasury’s (Treasury) Bureau of the Fiscal Service (Fiscal Service) for the fiscal years ended September 30, 2013,Continue Reading

New poll on anniversary of Dodd Frank finds majority of Americans identify Wall Street with risk

“On the 4th anniversary of the passage of the Dodd-Frank law and nearly 6 years since the financial collapse of 2008, American voters still distrust Wall Street and big banks and strongly support tough financial regulation of them, according to a new national survey of likely 2014 voters. The result is a strong majority of voters supporting stricter regulations of theContinue Reading

Almost 17 percent of outstanding past-due balance of student loans is held by those over 50

Becky Yerak and Kristin Samuelson, Chicago Tribune reporters: “A report released Wednesday by Barclays notes that 15.5 percent of outstanding student loan debt is owed by people 50 and older, including 4.2 percent held by people 60 and older. Those are staggering amounts given that outstanding student loan debt has surpassed $1 trillion, exceeding theContinue Reading

2014 Financial literacy annual report – CFPB

“Empowering people to take more control over their economic lives is essential to our mission. That’s why we’ve made financial education a critical component of our work. Our financial education strategy focuses on providing information and tools to help consumers navigate financial choices, and integrating financial capability training into other programs and services where consumersContinue Reading