AFA/ASE Panel: Implications of the Credit Crisis for the Regulation of Non-Bank Financial Firms

Abstract

This panel session, prompted by the financial crisis of 2007-2008, focuses on issues related to the soundness and regulation of financial firms that are not necessarily traditional banks, at times of crises in financial stability. An example is the demise of Bear Stearns. The focus of the panel is not only what happened, but also what should have happened, or could have happened under other market and regulatory circumstances. Among the important changes that have already occurred are as the new liquidity and credit facilities of the Fed, and congressional action allowing direct and significant federal support to Fannie Mae and Freddie Mac. Additional changes have been suggested by Treasury blueprint for new financial regulation, and in statements by Fed officials, particularly Ben Bernanke and Tim Geithner.

Discussion among the panel and audience.

JEL Classification: G1