How Large Has the Federal Financial Safety Net Become?

14 Pages Posted: 15 Dec 2012

See all articles by Nadezhda Malysheva

Nadezhda Malysheva

Independent

John R. Walter

Federal Reserve Banks - Federal Reserve Bank of Richmond

Multiple version iconThere are 2 versions of this paper

Date Written: March 1, 2010

Abstract

Legislative and regulatory actions taken in response to the financial turmoil which occurred between 2007 and 2009 expanded the extent to which financial institution liabilities were protected by federal government guarantees: i.e., these actions expanded the federal financial safety net. How large has the safety net become? Walter and Weinberg (2002) measured and examined the size of the safety net as it stood in 1999. We estimate the size of the safety net as of the end of 2008, after the creation of a number of government programs meant to back financial liabilities. We use methods similar to those employed by Walter and Weinberg and find that the safety net has expanded significantly. We briefly describe our results and provide a table detailing them.

Keywords: safety net, deposit insurance, too big to fail

JEL Classification: G20, G28, H20

Suggested Citation

Malysheva, Nadezhda and Walter, John R., How Large Has the Federal Financial Safety Net Become? (March 1, 2010). FRB Richmond Working Paper No. 10-03. Available at SSRN: https://ssrn.com/abstract=2189558 or http://dx.doi.org/10.2139/ssrn.2189558

Nadezhda Malysheva

Independent

John R. Walter (Contact Author)

Federal Reserve Banks - Federal Reserve Bank of Richmond ( email )

P.O. Box 27622
Richmond, VA 23261
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
9
Abstract Views
571
PlumX Metrics
!

Under construction: SSRN citations while be offline until July when we will launch a brand new and improved citations service, check here for more details.

For more information