Atlanta Fed's Financial Markets Conference Explores Future Regulation
Central bankers, finance professionals, and academics gathered on April 9–11 for the Federal Reserve Bank of Atlanta's annual Financial Markets Conference (FMC) at Stone Mountain, Ga.
Pondering regulation's effects
Each year, the FMC explores topical issues affecting financial markets and the broader economy. This year's event featured presentations by Federal Reserve Chairman Ben Bernanke, Sheila Bair (the former Federal Deposit Insurance Corporation chairman, now with the Pew Charitable Trust), and notables from the European Central Bank, International Monetary Fund, and other institutions.
Atlanta Fed paper explores mortgage policy
The paper concludes that policymakers broadly agree on a couple of points. One is to reduce the expected cost of federal government involvement in residential mortgage finance; another is to maintain explicit government guarantees for certain narrowly defined borrower populations.
Regarding the question of whether a new shadow banking system will emerge in response to new regulation, there is really no question at all, said Boston College professor of finance Edward J. Kane. In his conference presentation, he said the nation's largest banks will inevitably carve out niches outside the regulatory framework and will also enjoy an implicit taxpayer-funded safety net.
April 23, 2012