Items tagged with banking:
News & Updates:
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Spending deal prospects lie in the hands of Pelosi and Mnuchin; Trump flips on drug price plan, blames Democrats; Finance firms raise concerns over Fannie and Freddie privatization; ‘Phase two’ trade deal unlikely, say U.S., Chinese officials; Powell reveals support for low-income Americans in setting monetary policy; U.S. businesses cut investment amid market uncertainty. -
Trump, fearing flavored vape ban could cost him votes, reverses ban; USDA plans new round of trade-aid payouts to farmers; Huawei set for another 90-day US ban reprieve; Anti-robocall bill likely as House, Senate reach compromise; WTO forecasts weak trade flows through end of year; Central banks should monitor job-market churn as a stronger predictor of labor conditions. -
Number of uninsured children rises for second straight year; Banks using Washington connections to undermine tech industry; Arrests at Southern Border hit highest rate in over a decade; Home prices rise but lag in cities; Consumer confidence dips and misses expectations. -
Fed weakens bank requirements; U.S.-China trade talks started off on positive note; Senate will vote to reverse Trump healthcare, tax, and environmental changes; Push for FASC to work for whole-government; California proposes new data privacy rules; Import prices rise 0.2% -
In this time of market volatility, certain alternative private funds that invest in debt or credit have the potential to play an important role in promoting financial stability, as they are structured to supply the economy with a countercyclical source of credit. Despite the benefits to economic resilience, however, the development of a robust market for nonbank credit has generated concern among some financial stability watchdogs, reflecting long-standing distrust about the shadow banking sector. This brief outlines the rationale for why regulators and legislators should be thinking of ways to allow more—not less—investment to flow into the private credit/debt market, to mitigate future economic downturns. In particular, the brief argues that certain private credit/debt fund investments should be made accessible to retail investors, and recommends possible avenues the SEC could pursue—i.e., amending the definition of an accredited investor and expanding exemptions under Regulation D—to enable that to happen. In addition to fostering a countercyclical source of credit, such a deployment of the SEC’s rulemaking power also stands to have the ancillary benefit of promoting broader financial inclusion.
