Origins of too-big-to-fail policy in the United States

2020 ◽  
Vol 27 (1) ◽  
pp. 1-15
Author(s):  
George C. Nurisso ◽  
Edward Simpson Prescott
Keyword(s):  
United States ◽  
Federal Reserve ◽  
Systemic Risk ◽  
Deposit Insurance ◽  
The United States ◽  
Too Big To Fail ◽  
Interstate Banking ◽  
Legal Constraints ◽  
Federal Deposit Insurance ◽  
Over Time

This article traces the origin of too-big-to-fail policy in modern US banking to the bailout of the $1.2b Bank of the Commonwealth in 1972. It describes this bailout and those of subsequent banks through that of Continental Illinois in 1984. During this period, market concentration due to interstate banking restrictions is a factor in most of the bailouts and systemic risk concerns were raised to justify the bailouts of surprisingly small banks. Finally, most of the bailouts in this period relied on the Federal Deposit Insurance Corporation's use of the Essentiality Doctrine and Federal Reserve lending. A discussion of this doctrine is used to illustrate how legal constraints on regulators may become less constraining over time.

Closing the Monetary Policy Curriculum Gap: A Primer for Educators Making the Transition to Teaching the Fed's Ample-Reserves Framework

FEDS Notes ◽  
2020 ◽  
Vol 2020 (2789) ◽  
Author(s):  
Jane Ihrig ◽  
◽  
Scott Wolla ◽  
Keyword(s):  
United States ◽  
Monetary Policy ◽  
Central Bank ◽  
Federal Reserve ◽  
The United States ◽  
Price Stability ◽  
Over Time

The Federal Reserve (the Fed), the central bank of the United States, has a Congressional mandate to promote maximum employment and price stability. While those goals were articulated in 1977, the approach and tools used to implement those objectives have changed over time.

Part II The US Resolution Regime, 5 Fundamentals of Resolution Authority

2016 ◽  
Author(s):  
Gleeson Simon ◽  
Guynn Randall
Keyword(s):  
United States ◽  
Capital Structure ◽  
Deposit Insurance ◽  
Due Process ◽  
The United States ◽  
The Core ◽  
Current State ◽  
The Us ◽  
Insurance Programme ◽  
Federal Deposit Insurance

This chapter looks at the history and fundamental elements of resolution authority as it has been developed and used in the United States. The goal of resolution authority in the United States has been to deal with failed banks and other financial institutions in a manner that stems runs, avoids contagion and preserves critical operations, the same goal as deposit guarantee schemes. First introduced in the United States in 1933 as part of the deposit insurance programme for banks, resolution authority was originally little more than the method by which the Federal Deposit Insurance Corporation honoured its obligations to insured depositors before evolving to its current state. Resolution authority, as conceived in the United States, has two principal components—the core resolution powers and the claims process. The core resolution powers consist of the authority to quickly separate the assets and viable parts of a failed bank's business (the good bank) from its capital structure liabilities (the bad bank), so that its critical operations are preserved and runs and contagion are avoided. It is virtually always completed in the United States over a weekend commonly known as resolution weekend. The claims process involves determining the validity and amount of the claims of individual holders of capital structure liabilities in accordance with ordinary principles of due process and distributing the residual value of the good bank to such holders in satisfaction of their claims. The claims process typically takes at least six to nine months to be completed in order to comply with ordinary principles of due process for potential claimants.

State-Sponsored Insurance of Bank Deposits in the United States, 1907–1929

1981 ◽  
Vol 41 (3) ◽  
pp. 537-557 ◽  
Author(s):  
Eugene Nelson White
Keyword(s):  
United States ◽  
Deposit Insurance ◽  
Banking Industry ◽  
Strong Support ◽  
The United States ◽  
Small Unit ◽  
Bank Deposits ◽  
Key Factor ◽  
Branch Banking ◽  
Federal Deposit Insurance

Before the creation of the Federal Deposit Insurance Corporation in 1933, several states established deposit guarantee funds. The key factor influencing the adoption of deposit insurance by a state was the structure of its banking industry. In states where small unit banks were dominant, there was strong support for guarantee funds to protect deposits; in other states there was more interest in branch banking. The failure to design the guarantee funds in accordance with sound principles of insurance brought about their demise and led to increased branch banking.

An Analysis of Fraudulent Qui Tam Actions Over Time in the United States

2007 ◽  
Author(s):  
Karen A. Fitzner ◽  
Charlie Bennett ◽  
June McKoy ◽  
Cara Tigue
Keyword(s):  
United States ◽  
The United States ◽  
Over Time

The New Economic Populism and the Future of Inequality in the United States

2017 ◽  
Author(s):  
William W. Franko ◽  
Christopher Witko
Keyword(s):  
United States ◽  
Federal Government ◽  
Labor Unions ◽  
Republican Party ◽  
The United States ◽  
The Public ◽  
Empirical Results ◽  
Income Disparities ◽  
The Face ◽  
Over Time

The authors conclude the book by recapping their arguments and empirical results, and discussing the possibilities for the “new economic populism” to promote egalitarian economic outcomes in the face of continuing gridlock and the dominance of Washington, DC’s policymaking institutions by business and the wealthy, and a conservative Republican Party. Many states are actually addressing inequality now, and these policies are working. Admittedly, many states also continue to embrace the policies that have contributed to growing inequality, such as tax cuts for the wealthy or attempting to weaken labor unions. But as the public grows more concerned about inequality, the authors argue, policies that help to address these income disparities will become more popular, and policies that exacerbate inequality will become less so. Over time, if history is a guide, more egalitarian policies will spread across the states, and ultimately to the federal government.

scholarly journals Mercy towards decarceration: Examining the legal constraints on early release from prison

Incarceration ◽  
2020 ◽  
Vol 2 (1) ◽  
pp. 263266632097780
Author(s):  
Alexandra Cox ◽  
Dwayne Betts
Keyword(s):  
United States ◽  
Criminal Justice ◽  
Criminal Justice System ◽  
Justice System ◽  
Family Members ◽  
The United States ◽  
Early Release ◽  
The Us ◽  
Legal Constraints ◽  
Release From Prison

There are close to seven million people under correctional supervision in the United States, both in prison and in the community. The US criminal justice system is widely regarded as an inherently unmerciful institution by scholars and policymakers but also by people who have spent time in prison and their family members; it is deeply punitive, racist, expansive and damaging in its reach. In this article, we probe the meanings of mercy for the institution of parole.

scholarly journals Thirty-Day Laboratory-Based Surveillance for Carbapenem-Resistant Enterobacteriaceae in the Minneapolis-St. Paul Metropolitan Area

2014 ◽  
Vol 35 (4) ◽  
pp. 423-425 ◽  
Author(s):  
Edwin C. Pereira ◽  
Kristin M. Shaw ◽  
Paula M. Snippes Vagnone ◽  
Jane E. Harper ◽  
Alexander J. Kallen ◽  
...  
Keyword(s):  
United States ◽  
Metropolitan Area ◽  
The United States ◽  
Carbapenem Resistant ◽  
Over Time ◽  
Carbapenem Resistant Enterobacteriaceae

Carbapenem-resistant Enterobacteriaceae (CRE) are a growing problem in the United States. We explored the feasibility of active laboratory-based surveillance of CRE in a metropolitan area not previously considered to be an area of CRE endemicity. We provide a framework to address CRE surveillance and to monitor changes in the incidence of CRE infection over time.

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