Posted: September 13th, 2017

Financial Institutions

Paper, Order, or Assignment Requirements

• Describe with diagram(s) (or flow chart(s)) how Securitization can be varyingly constructed.

How can this funding technique varyingly distribute risk?

Make reference to chapter 6 Hull (Risk Management and Financial Institutions).

According to Frame and White (2005) what issues dogged Freddie and Fannie in the pre crisis period.

According to Taylor (2007) how did Federal Reserve Monetary Policy over the (2002 – 2005) period contribute to the crisis?

Explain how monetary policy is implemented by the Federal Reserve and the European Central Bank (ECB).

How does this differ from the monetary regime that existed under the Gold Standard?

Include references to the Taylor Rule (1993) and Inflation targeting.

Use the Cecchetti Chapters 15 and 16, Taylor (1993) and Dominguez (2006).

Make reference to the Shiller podcast lecture 18 on Monetary Policy

http://oyc.yale.edu/economics/econ-252-11#sessions

and to the Econtalk Podcast by Taylor “John Taylor On Monetary Policy”,

http://www.econtalk.org/archives/_featuring/john_taylor/

How did the Financial Crisis (2007 – ) affect central bank operating procedures?

Make reference to the Appendix of the Monetary Policy Report to the Congress February 24, 2009, p. 47.

According to Cecchetti (2008) what new ways of implementing monetary policy in United States have emerged since the crisis began.

Does this make policy at the Federal Reserve more consistent with the ECB?

Make reference to Doran and Murphy (2005) when considering how broadly the ECB system accepted collateral for OMOs prior to the financial crisis?

• With reference to the Shiller lectures 13 and 18 and Hull (Risk Management and Financial Institutions) describe the Basle framework.

How does the IRB approach Foundation level of Basle 2 differ from the standardized approach?

How did the Basle capital framework contribute to the growth of securitization?

How might dynamic provisioning for capital help mitigate the problem of procyclicality associated with the Basel framework.

What alternative to the Basel framework does Partnoy (2001) propose? What benefits do the Bebchuk and Spamann (2010) proposals have over purely relying on the Basle framework as currently constituted.

How does Basle 2 incorporate Calormiris (1999)?

(((The Answer From YouTube lecture 13 and 18 + Risk Management and Financial Institutions )))