Political fortunes: On finance & its regulation

Daedalus

Volumn 139, Issue 4, 2010, Pages 61-73

  Mccarty, Nolan ^a   Poole, Keith T ^a   Romer, Thomas ^a   Rosenthal, Howard ^a  

^a NONE

Author keywords

[No Author keywords available]

Indexed keywords

EID: 78049399993     PISSN: 00115266     EISSN: 15486192     Source Type: Journal    
DOI: 10.1162/DAED_a_00043     Document Type: Article

References (7)

1. Poole thanks his colleagues at the University of Georgia for offering many helpful comments. Romer is grateful to the United States Studies Centre at the University of Sydney, where he was on sabbatical leave during the North American winter months of 2010, for its gracious hospitality. It was an excellent environment for stimulating conversations about the global financial crisis. Rosenthal thanks his colleagues at the California Institute of Technology in the spring quarter of 2010, especially Peter Bossaerts and Jean-Laurent Rosenthal, for discussion and comments, as well as participants in conferences at Columbia University and Università Cattolica del Sacro Cuore.
2. Our summary of the politics of the S&L crisis is based on Thomas Romer and Barry R. Weingast, "Political Foundations of the Thrift Debacle," in Politics and Economics in the 1980s, ed. Alberto Alesina and Geoffrey Carliner (Chicago: University of Chicago Press, 1991).
3. The two principal pieces of legislation were the Depository Institutions Deregulation and Monetary Control Act of 1980 and the Garn-St. Germain Depository Institutions Act of 1982.
4. Competitive Equality Banking Act of 1987.
5. See David H. Pyle, "The U.S. Savings and Loan Crisis," in Handbooks in Operations Research and Management Science, vol. 9, Finance, ed. Robert A. Jarrow et al. (Amsterdam: Elsevier, 1995).
6. The rtc is now generally thought to have done a good job, though it had some rocky years. In disposing of the assets of failed thrifts, the rtc faced conflicting political mandates (including social policy objectives such as minority contracting and affordable housing, as well as getting the highest value for the assets).
7. See Lee Davison, "The Resolution Trust Corporation and Congress, 1989-1993. Part II: 1991-1993," fdic Banking Review (2006), http://www.fdic.gov/bank/analytical/banking/2007apr/article1/index.html.