The Institutional Risk Analyst

In this issue of The Institutional Risk Analyst, we republish a commentary by Brian Wesbury, Chief Economist at First Trust Advisors, regarding the role of bank regulations in causing the liquidity squeeze in short term markets earlier this week. When Fed Chairman Jerome Powell says there is no connection between market tightness and monetary policy, he is right. The culprit is bank regulations that restrict the ability of banks to provide liquidity to the markets, as we wro

New York | The failure of Bear Stearns & Co a decade ago illustrates the key lesson of financial markets, namely that non-banks are dependent upon 1) banks and 2) clients for liquidity. And no amount of capital will save a non-bank that has a deficit in terms of confidence. In times of market stress, credibility and character are far more important than capital. Like the Crisis of 1907, when JPMorgan (NYSE:JPM) had to rescue the trust banks at the behest of President Teddy