Publications

One-Pager No. 49 | May 2015

Lending Blind

Shadow Banking and Federal Reserve Governance in the Global Financial Crisis

The 2008 Federal Open Market Committee (FOMC) transcripts provide a rare portrait of how policymakers responded to the unfolding of the world’s largest financial crisis since the Great Depression. The transcripts reveal an FOMC that lacked a satisfactory understanding of a shadow banking system that had grown to enormous proportions—an FOMC that neither comprehended the extent to which the fate of regulated member banks had become intertwined and interlinked with the shadow banking system, nor had considered in advance the implications of a serious crisis. As a consequence, the Fed had to make policy on the fly as it tried to prevent a complete collapse of the financial system.

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Publication Highlight

Public Policy Brief No. 145
European Sovereign Bond-Backed Securities
An Assessment and an Alternative Proposal
Author(s): Mario Tonveronachi
June 2018

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