A New Proposal to Expand Banking Services in Rural America

By | December 15, 2018

There are now two Americas. A growing, dynamic, and prosperous urban America (including suburbs) that votes almost exclusively Democratic, and a shrinking, poor, rural America that votes Republican. This divide carries significant consequences, from increased polarization to the opioid epidemic, and defies traditional economic logic. Unless something is done soon to turn around the economic… Read More »

Data, Innovation and Transatlantic Competition in Finance: The Case of the Access to Account Rule

By | December 13, 2018

Courtesy of Oscar Borgogno* and Giuseppe Colangelo** In our paper ‘Data, Innovation and Transatlantic Competition in Finance: The Case of the Access to Account Rule’, we focus on the EU regulatory effort, enshrined in the Directive 2366/2015 on payment services in the internal market (PSD2), to enact a sector-specific portability regime (the access to account… Read More »

Post-Crisis Consumer Financial Protection: Did it Help?

By | December 12, 2018

Courtesy of Javier Garcia Gonzalez After the financial crisis of 2007-2008, there was a wave of regulatory changes in the US regarding consumer financial protection that mostly applied to mortgages and student loans. These new regulations granted consumers additional disclosures, banned abusive practices and fought deceptive practices. It was consistent with the narrative that consumers… Read More »

Safe Until They Aren’t? Investigating Liquidity Illusions in the Exchange Traded Fund Market

By | December 6, 2018

Since the 2008 global financial crisis (GFC) exchange traded funds (ETFs) have experienced remarkable growth.[1] A recent Bloomberg report pegs the worldwide ETF market at over $5.3 trillion (up from $700 billion pre-GFC) with the U.S. accounting for nearly 70 percent of its size.[2] The number of available products has grown exponentially.[3] Product variety seems… Read More »

Insurance – Its Impact and Regulation

By | December 5, 2018

The below are edited remarks from a speech delivered by Richard C. Hsia at Duke Law on November 29th, 2018. I want you to know what I think about Insurance, and I want to know what you think about Insurance.  Most people do not think about Insurance and, if possible, would never think about Insurance.… Read More »

Can Virtual Currencies Challenge the Dominant Position of Sovereign Currencies?

By | November 30, 2018

Courtesy of Marek Dabrowski[1] and Lukasz Janikowski[2] The short answer is most likely no, at least not in the near future. Despite the relative “success” of Bitcoin and other virtual currencies (VCs) like Ethereum and Ripple, their role in the economy is minimal. On November 27, 2018, the total market capitalization of all VCs was… Read More »

Regulations and Brain Drain: Evidence from Wall Street Star Analysts’ Career Choices

By | November 19, 2018

Courtesy of Yuyan Guan, Congcong Li, Hai Lu, and Franco Wong Sell-side analysts from investment banks have long been suspected of issuing overly optimistic stock research in exchange for investment banking business, especially during the Internet bubble period in the late 1990s. Amongst a series of reforms from 2002 to 2003 to address the conflicts… Read More »

Tokenomics: Crypto-Asset Valuation, Token Design, and the Development of Blockchain Networks

By | November 16, 2018

Courtesy of Lin William Cong, Ye Li, Neng Wang[1] Advances in FinTech and the sharing economy are being driven by the growing demand for peer-to-peer connections that transform how people interact, work, consume, and produce. Although mass-adoption of blockchain faces many hurdles, the technology holds the capacity to create financial architectures which reorganize our society… Read More »

The Unintended Consequences of the 2014 Reform of Money Market Funds

By | November 15, 2018

Courtesy of Ramin Baghai, Mariassunta Giannetti and Ivika Jäger Financial regulation can have far-reaching consequences, some of which may not be intended by the regulator. In a new paper, we trace out the effects of recent money market regulatory reform, which had the objective of increasing the resilience of the US money market industry. We… Read More »

Fintech Lending Risks and Benefits

By | November 14, 2018

Courtesy of Vincent Di Lorenzo Fintech lending, sometimes referred to as online marketplace lending, is lending through digital platforms that often collect and base lending decisions on nontraditional data sources. Underwriting is typically automated and may employ nontraditional credit algorithms. In the consumer and small business credit market, fintech loan originations have experienced an annual… Read More »