Steven Kelly Profile picture
Researcher at the Yale Program on Financial Stability. Previously private sector systemic risk management. Views my own; RTs almost certainly endorsements.
24 Mar
Re-upping this thread as regulators & policymakers have yet to splash water in the face of the FDIC and make this happen.
These benefits I mentioned earlier are just a fraction of the good to come, especially as the policy response has evolved (while still lagging):
Additional benefits include:

4) Super-charges the Fed's new corporate debt facility by removing the need to support bank debt (>20% of inv. grade bonds)
Read 6 tweets
7 Jun 19
We know that financial crises come from innovations of short-term bank/bank-like debt that move outside of/more quickly than the regulatory regime. So, where might the next one come from? A case for the answer being right there in the name: #FinTech. An ongoing thread...
Many firms providing digital payment services have large cash balances attributable to their customers who have left money “in” the app for ease of use. This cash is often deposited in banks with interest accruing to the firm...
...This muddies the picture of short-term funding for bank regulators and provides an extra link in the chain that can leave the financial system vulnerable to runs. There are several possible mechanisms...
Read 18 tweets