The Glass–Steagall legislation describes four provisions of the United States Banking Act of 1933 separating commercial and investment banking. The article 1933 Banking Act describes the entire law,including the legislative history of the provisions covered herein.
In economics,a moral hazard is a situation where an economic actor has an incentive to increase its exposure to risk because it does not bear the full costs of that risk. For example,when a corporation is insured,it may take on higher risk knowing that its insurance will pay the associated costs. A moral hazard may occur where the actions of the risk-taking party change to the detriment of the cost-bearing party after a financial transaction has taken place.
George William Miller was an American businessman and investment banker who served as the 65th United States secretary of the treasury from 1979 to 1981. A member of the Democratic Party,he also served as the 11th chairman of the Federal Reserve from 1978 to 1979. Miller was the first person to hold both of those posts.
The Federal Reserve System has faced various criticisms since it was authorized in 1913. Nobel laureate economist Milton Friedman and his fellow monetarist Anna Schwartz criticized the Fed's response to the Wall Street Crash of 1929 arguing that it greatly exacerbated the Great Depression. More recent prominent critics include former Congressman Ron Paul.
A bailout is the provision of financial help to a corporation or country which otherwise would be on the brink of bankruptcy.
Ben Shalom Bernanke is an American economist who served as the 14th chairman of the Federal Reserve from 2006 to 2014. After leaving the Federal Reserve,he was appointed a distinguished fellow at the Brookings Institution. During his tenure as chairman,Bernanke oversaw the Federal Reserve's response to the late-2000s financial crisis,for which he was named the 2009 Time Person of the Year. Before becoming Federal Reserve chairman,Bernanke was a tenured professor at Princeton University and chaired the department of economics there from 1996 to September 2002,when he went on public service leave. Bernanke was awarded the 2022 Nobel Memorial Prize in Economic Sciences,jointly with Douglas Diamond and Philip H. Dybvig,"for research on banks and financial crises",more specifically for his analysis of the Great Depression.
The Continental Illinois National Bank and Trust Company was at one time the seventh-largest commercial bank in the United States as measured by deposits,with approximately $40 billion in assets. In 1984,Continental Illinois became the largest ever bank failure in U.S. history,when a run on the bank led to its seizure by the Federal Deposit Insurance Corporation (FDIC). Continental Illinois retained this dubious distinction until the failure of Washington Mutual in 2008 during the financial crisis of 2008,which ended up being over seven times larger than the failure of Continental Illinois.
Edward Gerald Corrigan was an American banker who was the seventh President of the Federal Reserve Bank of New York and Vice-Chairman of the Federal Open Market Committee. Corrigan served as a partner and managing director in the Office of the Chairman at Goldman Sachs and was appointed chairman of GS Bank USA,the bank holding company of Goldman Sachs,in September 2008 until retiring in 2016. He was also a member of the Group of Thirty,an influential international body of leading financiers and academics.
Jeffrey M. Lacker is an American economist and was president of the Federal Reserve Bank of Richmond until April 4,2017. He is now a Distinguished Professor in the Department of Economics at the Virginia Commonwealth University School of Business in Richmond,Virginia.
"Too big to fail" (TBTF) is a theory in banking and finance that asserts that certain corporations,particularly financial institutions,are so large and so interconnected that their failure would be disastrous to the greater economic system,and therefore should be supported by government when they face potential failure. The colloquial term "too big to fail" was popularized by U.S. Congressman Stewart McKinney in a 1984 Congressional hearing,discussing the Federal Deposit Insurance Corporation's intervention with Continental Illinois. The term had previously been used occasionally in the press,and similar thinking had motivated earlier bank bailouts.
William Poole was the eleventh chief executive of the Federal Reserve Bank of St. Louis. He took office on March 23,1998 and began serving his full term on March 1,2001. In 2007,he served as a voting member of the Federal Open Market Committee,bringing his District's perspective to policy discussions in Washington. Poole stepped down from the Fed on March 31,2008.
Thomas Michael Hoenig is a Distinguished Senior Fellow at the Mercatus Center. He became a director of the Federal Deposit Insurance Corporation on April 16,2012,and served as vice chairman from November 30,2012 to April 30,2018. From 1991 to 2011,he served as the eighth chief executive of the Tenth District Federal Reserve Bank,in Kansas City,United States. In 2010,he was serving as a voting member of the Federal Open Market Committee,as one of five of the twelve Federal Reserve Bank presidents that sit on the Committee on a yearly rotating basis. He is known as an "anti-inflation hawk".
The Emergency Economic Stabilization Act of 2008,often called the "bank bailout of 2008" or the "Wall Street bailout",was proposed by Treasury Secretary Henry Paulson,passed by the 110th United States Congress,and signed into law by President George W. Bush. It became law as part of Public Law 110-343 on October 3,2008,in the midst of the financial crisis of 2007–2008. It created the $700 billion Troubled Asset Relief Program (TARP) to purchase toxic assets from banks. The funds were mostly redirected to inject capital into banks and other financial institutions while the Treasury continued to examine the usefulness of targeted asset purchases.
Neel Tushar Kashkari is an American banker,economist and politician who is the president of the Federal Reserve Bank of Minneapolis. As interim Assistant Secretary of the Treasury for Financial Stability from October 2008 to May 2009,he oversaw the Troubled Asset Relief Program (TARP) that was a major component of the U.S. government's response to the Financial crisis of 2007–2008. A Republican,he unsuccessfully ran for Governor of California in the 2014 election.
Kenneth C. Froewiss was a Clinical Professor of Finance at the New York University Stern School of Business,and specialized investment banking,mergers and acquisitions,and corporate governance. Professor Froewiss also taught for the TRIUM Global Executive MBA Program,an alliance of NYU Stern,the London School of Economics and HEC School of Management,and served as Academic Director of Executive Programs at NYU Stern.
End the Fed is a 2009 book by Congressman Ron Paul of Texas. The book debuted at number six on the New York Times Best Seller list and advocates the abolition of the United States Federal Reserve System "because it is immoral,unconstitutional,impractical,promotes bad economics,and undermines liberty." The book argues that the booms,bubbles and busts of the business cycle are caused by the Federal Reserve's actions.
Narayana Rao Kocherlakota is an American economist and the Lionel W. McKenzie Professor of Economics at the university of Rochester. Previously,he served as the 12th president of the Federal Reserve Bank of Minneapolis until December 31,2015. Appointed in 2009,he joined the Federal Open Markets Committee in 2011. In 2012,he was named one of the top 100 Global Thinkers by Foreign Policy magazine.
John Carroll Williams is the president and chief executive officer of the Federal Reserve Bank of New York,having also served as president of Federal Reserve Bank of San Francisco from 2011 to 2018. He is currently serving as vice chairman of the Federal Open Market Committee.
Phillip Lee "Phill" Swagel is an American economist who is currently the director of the Congressional Budget Office. As Assistant Secretary of the Treasury for Economic Policy from 2006 to 2009,he played an important role in the Troubled Asset Relief Program that was part of the U.S. government's response to the financial crisis of 2007–08. He was recently a Professor in International Economics at the University of Maryland School of Public Policy,a non-resident scholar at the American Enterprise Institute,senior fellow at the Milken Institute,and co-chair of the Bipartisan Policy Center's Financial Regulatory Reform Initiative.
Raphael W. Bostic is an American economist,academic,and public servant who has served as the 15th president and CEO of the Federal Reserve Bank of Atlanta since 2017. During his academic career,Bostic served as chair of the Department of Governance,Management,and the Policy Process at the Price School of Public Policy at the University of Southern California.
