Skip to main content

Too Big To Fail Still A debate, Team Thayer #Housing #News #eugene #oregon #realestate #housingmarket

wall-st
The question as to whether “too big to fail” no longer exists or is being codified by the government continued to be a hot button topic as 2015 wound down, and the debate isn’t slowing as 2016 begins.
The Dodd-Frank Wall Street Reform Act of 2010 contained a provision limited the Fed’s ability to engage in emergency lending and lending to programs with “broad based” eligibility, and was billed as the end of “too big to fail.”
While Dodd-Frank prohibits the Fed from lending to insolvent entities, however, the Fed issued a final rule in November 2015 that expanded the definition of insolvency to include borrowers who fail to pay undisputed debts as they become due 90 days before borrowing—or borrowers who are determined to be insolvent by the Fed or lending Reserve Bank.
Some in the industry were skeptical that the Fed’s final rule issued in November would be effective at ending emergency bailouts of large financial institutions. Among the skeptics was Ed Delgado, President and CEO of the Five Star Institute, who stated, “While the clarification of 'broad-based lending’ is designed to limit the types of bailouts the industry realized in 2008, at the same time, the Fed expanded the definition of ‘insolvency’ ostensibly, given the circumstance, permitting lending to entities that may actually be insolvent, so I question how much of an impact this new rule will really have?”
Too big to fail has been heavily debated in the House Financial Services Committee, most recently in early December when the Committee held a hearing to discuss whether or not the Financial Stability Oversight Council (FSOC) is codifying too big to fail by designating certain financial institutions as “systemically important.”  The FSOC’s criteria for such a designation has also been greatly contested. The FSOC is an agency created by Dodd-Frank that consists mostly of the heads of government regulatory agencies.
House Financial Services Committee Chairman Jeb Hensarling stated in late November that “Designation (of an institution as systemically important) anoints institutions as too big to fail, meaning today’s SIFI designations are tomorrow’s taxpayer-funded bailouts.”
The topic of whether or not too big to fail still exists will be at the forefront once again on Friday, January 22, when the Hoover Institution and the Bipartisan Policy Center will host an event in Washington, D.C., titled “Ending Too Big to Fail: Reform and Implementation.” The event features remarks by Hoover Institution Senior Fellow John Taylor and the University of Rochester’s President Emeritus Thomas Jackson, and will include a panel of experts discussion the effectiveness of new capital requirements toward preventing short-term liquidity shortage, what changes are necessary to the Bankruptcy Code to limit financial distress, and whether or not proposals by the FDIC ensure that a resolution is certain.
The event is a follow-up to the Bipartisan Center’s white paper, Too Big to Fail: The Path to a Solution and coincides with the release of the Hoover Institute’s book, Making Failure Feasible: How Bankruptcy Reform Can End Too Big to Fail.
In September 2015, a study by Norbert J. Michel, Research Fellow in Financial Regulations, the Institute for Economic Freedom and Opportunity at the Heritage Foundation, concluded that Dodd-Frank still allows the Fed to engage in the type of emergency lending that the industry saw back in 2008 despite its claims that the controversial law had ended too big to fail.

Find Homes In Oregon: www.teamthayer.com

Popular posts from this blog

UFC 227 play-by-play and live results #UFC #MMA #UFC227

LOS ANGELES – MMAjunkie is on scene and reporting live from today’s UFC 227 event, and you can join us for live play-by-play and official results beginning at 6:30 p.m. ET (3:30 p.m. PT). The event takes place at Staples Center in Los Angeles. The main card airs on pay-per-view following preliminary-card bouts on FX and UFC Fight Pass. In the main event, bantamweight champion T.J. Dillashaw (15-3 MMA, 11-3 UFC) rematches former champ and ex-teammate Cody Garbrandt (11-1 MMA, 6-1 UFC) for the title. In the co-feature, flyweight champion Demetrious Johnson (27-2-1 MMA, 15-1-1 UFC) has a rematch with Olympic gold medalist and former title challenger Henry Cejudo (12-2 MMA, 6-2 UFC). Follow along with our round-by-round updates and official results beginning at approximately 6:30 p.m. ET for the UFC Fight Pass prelims, 8 p.m. ET for the prelims on FX, and 10 p.m. ET for the main card on pay-per-view. To discuss the show, be sure to check out our  UFC 227 discussion thread...

Team Thayer Real Estate House Flipping Traps! #flippinghouses #eugeneoregon #oregon #housing #market #realestate

If you’ve got several leads waiting to turn into potential deals, you can’t wait for one to suddenly come knocking at your door. Successful real estate house flippers have one trait in common: they place an emphasis on proper planning. Once you’ve secured a deal, you must decide what kind of rehab you will perform. Will you conduct a few simple cosmetic upgrades (like these  10 rehab projects you finish in one weekend )? Or, is the home nice enough to sell after  an easy prehab ? Are there structural damages that will require you to carry out more major renovations? Will you focus on implementing environmentally friendly renovations  – also known as “greenhabbing” – so that you  qualify for certain tax benefits ? Once you’ve determined your strategy, it is important to ask yourself these specific questions before diving into the construction action: What are the current market conditions in my area? What does my ideal buyer look like? Does my marketing cam...

First-Time Home Buyer Mortgage Risk Edge Up Team Thayer Real Estate news.

The first-time buyer share in April, May, and June was launched to new highs, supported by improvements in the labor market, riskier mortgage lending, and continuing low mortgage rates. The  American Enterprise Institute (AEI)  International Center on Housing Risk  recently released a  report , finding that first-time buyers account for 58.8 percent of primary owner-occupied home purchase mortgages with a government guarantee, up from 57.2 percent the prior June, according to the Agency First-Time Buyer Mortgage Share Index (FBMSI). The Combined FBMSI, which measures the share of first-time buyers for both government-guaranteed and private-sector mortgages reached an estimated 52.9 percent, up from 51.6 percent the prior June, according to the report. In addition, AEI determined that the Agency First-Time Buyer Mortgage Risk Index (FBMRI) stood at a series record of 15.83 percent, and increase of half of a percentage point from the average over the prio...