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Event Economics Regulatory Policy

Assessing the Obama Era

Friday May 2017

After President Obama's election, federal regulators' approach to the financial industry changed significantly, from the looser approach in the years leading up to the 2008 financial crisis to a more restrictive approach meant to prevent a recurrence of that event. Regulators imposed new rules on everything from leverage to credit-card fees.

More than half a decade has passed since lawmakers and regulators made these changes. The Trump administration has signaled that it will revisit them to ensure that all existing regulations help advance several core new White House principles, including empowering Americans to make good financial choices, preventing taxpayer bailouts, and fostering economic growth.

Do the Obama-era laws and regulations help advance these goals? The Manhattan Institute invited eight teams of distinguished economists—led by Charles Calomiris of Columbia University—to study how recent regulatory mandates have affected banks, credit-card companies, individual borrowers and savers, and the economy as a whole.

At this MI financial-regulation symposium, the papers will be presented publicly for the first time. In 2018, the papers will be released in a special issue of the Journal of Financial Intermediation.

9:00 - 10:15 AM PANEL I
Lending Implications of U.S. Bank Stress Tests: Costs or Benefits?
Allen Berger, H. Montague Osteen, Jr., Professor of Banking and Finance and Carolina Distinguished Professor, Darla Moore School of Business, University of South Carolina

Macroprudential Policy and the Revolving Door of Risk: Lessons from Leveraged Lending Guidance
Matthew Plosser, Economist, Federal Reserve Bank of New York

Do Higher Capital Standards Always Reduce Bank Risk? The Impact of the Basel Leverage Ratio on the U.S. Triparty Repo Market
Jill Cetina, Associate Director of Policy Studies, Office of Financial Research, United States Department of Treasury
10:15 - 10:30 AM BREAK
10:30 - 11:45 AM PANEL II
Differential Bank Behaviors around the Dodd-Frank Act Size Thresholds
Shane Johnson, Thomas W. Leland Memorial Chair in Finance, Mays Business School, Texas A&M University

How the Dodd-Frank Act Affected Bank Acquisition Behavior
Christa Bouwman, Associate Professor of Finance and RepublicBank Research Fellow, Mays Business School, Texas A&M University; Fellow, Wharton Financial Institutions Center, University of Pennsylvania

Bank Liquidity Management and Bank Capital Shocks
Robert DeYoung, Harold Otto Chair of Economics, Capitol Federal Distinguished Professor in Financial Markets and Institutions, University of Kansas School of Business
11:45 - 1:00 PM LUNCH/KEYNOTE
A Path Forward for Bank Regulation
Charles Calomiris, Henry Kaufman Professor of Financial Institutions, Columbia Business School; Adjunct Fellow, Manhattan Institute
1:00 - 2:15 PM PANEL III
The Credit Card Act and Consumer Finance Company Lending
Gregory Elliehausen, Principal Economist, Board of Governors of the Federal Reserve System

Competition and Complementarities in Retail Banking: Evidence from Debit Card Interchange Regulation
Cindy Vojtech, Senior Economist, Board of Governors of the Federal Reserve System
Charles Calomiris