Financial Institutions

No More Bailouts

06/30/20

I have a new white paper out from the Roosevelt Institute's Great Democracy Initiative. The paper, which is co-authored with Lindsay Owens and Ganesh Sitaraman, proposes a standing emergency economic stabilization authority to provide an off-the-shelf immediately available response to common problems that recur in national economic crises.

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As businesses try to recover, it's time for fintechs to get proactive

06/29/20

A spike in demand has led to a bigger emphasis on innovative solutions for the digital payments market.

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Banks can ill afford to get complacent about coronavirus

06/24/20

Business continuity plans should be used constantly, not just when the crisis is at its peak, says the New York Fed’s head of financial services.

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How to Start Closing the Racial Wealth Gap

06/17/20

I have an article out in The American Prospect about How to Start Closing the Racial Wealth Gap. Unlike a lot of writing bemoaning the racial wealth gap, this piece has a concrete reform that could be undertaken on day 1 of a Biden administration without any need for legislation or even notice-and-comment rulemaking.

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The Great American Housing Bubble

06/07/20

My new book, The Great American Housing Bubble:  What Went Wrong and How We Can Protect Ourselves in the Future is being released on Tuesday by Harvard University Press. The book is co-authored with my long-time collaborator, Wharton real estate economist Susan Wachter.

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The Brown M&M Theory of Telltale Minor Regulatory Violations or What's Wrong with "Earn a savings rate 5X the national average"?

05/21/20

A CapitalOne savings account ad has got me thinking about whether Van Halen has anything to teach regulators. Van Halen is famous for its use of a contract that requires provision of M&Ms for the band, but expressly prohibits provision of any brown M&Ms.

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PPP Loan Fees for Banks

04/27/20

$10 billion of CARES Act funds are going to the banks, especially megabanks, in fees for making “small” business PPP loans. The fees, paid by the Small Business Administration, i.e. Treasury, range from 1% for loans above $2 million to 5% for loans below $350,000.

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Corona Cash and Refund Anticipation Checks

04/12/20

Vijay Raghavan, who will be joining the Brooklyn Law School faculty this summer and his colleague Tom James, shared a troubling observation about the payment of the recovery rebates ("Corona Cash" or "Mnuchin Mnoney") through direct deposit to taxpayers.

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The Bailout Cronyism and Corruption Have Already Begun

03/21/20

We need to bail out the economy, and it's not going to be cheap. The government is going to have to carry the economy for 18-24 months. There's no way of avoiding that. But we don't need to be stupid or corrupt about the way we do it. And stupidity and corruption is unfortunately so hardwired into the Trump administration's DNA that it is being reflected in virtually every proposal out of the administration. 

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COVID-19 Response: The Need for Speed

03/18/20

While Congress struggles to figure out the best way to respond to the coronavirus pandemic, it is very apparent that immediate relief measures are necessary, if only to buy time for a more comprehensive approach. Layoffs are already happening and with they continue, it will result in more economic disruption from diminished consumption.

1. Sending out checks isn't fast enough (and can't happen in two weeks)

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