Policy History, Theory, and Methods Commons^™

European Banking Union D: Cross-Border Resolution—Dexia Group, Rosalind Z. Wiggins, Natalia Tente, Andrew Metrick

Journal of Financial Crises

In September 2008, Dexia Group, SA, the world’s largest provider of public finance, experienced a sudden liquidity crisis. In response, the governments of Belgium, France, and Luxembourg provided the company a capital infusion and credit support. In February 2010, the company adopted a European Union (EU)-approved restructuring plan that required it to scale back its businesses and cease proprietary trading. In June 2011, Dexia withdrew from the government-sponsored credit support program before its expiration date, and in July, the company announced that it had passed an EU stress test. However, just three months later, Dexia wrote down its substantial position …

European Banking Union C: Cross-Border Resolution–Fortis Group, Rosalind Z. Wiggins, Natalia Tente, Andrew Metrick

Journal of Financial Crises

In August 2007, Fortis Group, Belgium’s largest bank, acquired the Dutch operations of ABN AMRO, becoming the fifth largest bank in Europe. Despite its size and its significant operations in the Benelux countries, Fortis struggled to integrate ABN AMRO. Fortis’s situation worsened with the crash of the US subprime market, which impacted its subprime mortgage portfolio. By July 2008, Fortis’s CEO had stepped down, its stock had lost 70% of its value, and it was on the verge of collapse due to a severe liquidity crisis. The governments of Belgium, Luxembourg, and the Netherlands quickly came together and agreed to …

European Banking Union B: The Single Resolution Mechanism, Rosalind Z. Wiggins, Michael Wedow, Andrew Metrick

Journal of Financial Crises

The options available to European governments to respond to a multinational bank in financial trouble have been severely limited since each country has its own unique laws and authority applicable to banks operating within its borders. The Bank Recovery & Resolution Directive (BRRD), which was adopted in 2013 and scheduled to go into effect January 2015, harmonizes rules across EU countries for how to restructure and resolve failing banks. However, the directive would maintain the existing system of individual national resolution authorities and resolution funds. To better secure the Eurozone banks and to compliment the Single Supervisory Mechanism, which was …

European Banking Union A: The Single Supervisory Mechanism, Rosalind Z. Wiggins, Michael Wedow, Andrew Metrick

Journal of Financial Crises

At the peak of the Global Financial Crisis in fall 2008, each of the 27 member states in the European Union (EU) set many of its own banking rules and had its own bank regulators and supervisors. The crisis made the shortcomings of this decentralized approach obvious, and since its formation in January 2011, the European Banking Authority (EBA) has been developing a “Single Rulebook” that will harmonize banking rules across the EU countries. In June 2012, European leaders went even further, committing to a banking union that would better coordinate supervision of banks in the then 18-country Eurozone. A …

European Central Bank Tools And Policy Actions A: Open Market Operations, Collateral Expansion And Standing Facilities, Chase P. Ross, Rosalind Z. Wiggins, Andrew Metrick

Journal of Financial Crises

Beginning in August 2007, the European Central Bank (ECB) responded to market turmoil with a variety of standard and non-standard monetary policy tools. This case discusses the operational framework of the ECB’s open market operation tools and standing facilities before and during the financial crisis. Specifically, this case describes the ECB’s use of its main refinancing and longer-term refinancing operations, the expansion of collateral eligible for use in Eurosystem credit operations, and the ECB’s standing facilities, including its marginal lending and deposit facilities.

Ireland And Iceland In Crisis D: Similarities And Differences, Arwin G. Zeissler, Daisuke Ikeda, Andrew Metrick

Journal of Financial Crises

On September 29, 2008—two weeks after the collapse of Lehman Brothers—the government of Ireland took the bold step of guaranteeing almost all liabilities of the country’s major banks. The total amount guaranteed by the government was more than double Ireland’s gross domestic product, but none of the banks were immediately nationalized. The Icelandic banking system also collapsed in 2008, just one week after the Irish government issued its comprehensive guarantee. In contrast to the Irish response, the Icelandic government did not guarantee all bank debt. Instead, the Icelandic government controversially split each of the three major banks into a new …

Ireland And Iceland In Crisis C: Iceland’S Landsbanki Icesave, Arwin G. Zeissler, Thomas Piontek, Andrew Metrick

Journal of Financial Crises

At year-end 2005, almost all of the total assets of Iceland’s banking system were concentrated in just three banks (Glitnir, Kaupthing, and Landsbanki). These banks were criticized by certain financial analysts in early 2006 for being overly dependent on wholesale funding, much of it short-term, that could easily disappear if creditors’ confidence in these banks faltered for any reason. Landsbanki, followed later by Kaupthing and then Glitnir, responded to this criticism and replaced part of their wholesale funding by using online accounts to gather deposits from individuals across Europe. In Landsbanki’s case, these new deposits were marketed under the name …

Ireland And Iceland In Crisis B: Decreasing Loan Loss Provisions In Ireland, Arwin G. Zeissler, Andrew Metrick

Journal of Financial Crises

All public companies in the European Union, including Ireland’s major banks, were required to adopt IAS 39 for their annual accounting periods beginning on or after January 1, 2005. Under the “incurred loss” model of IAS 39, banks could set aside reserves for loan losses only when objective evidence existed that a loan was impaired, not in anticipation of future losses. As a result, Irish banks saw their aggregate reserve for bad loans drop from 1.2% of loan balances at the end of 2000 to only 0.4% by 2006-07, just before the collapse of the banking industry caused loan losses …

Ireland And Iceland In Crisis A: Increasing Risk In Ireland, Arwin G. Zeissler, Karen Braun-Munzinger, Andrew Metrick

Journal of Financial Crises

Ireland went from being the poorest member of the European Economic Community in 1973 to enjoying the second highest per-capita income among European countries by 2007. Healthy growth in the 1990s eventually gave way to a concentrated boom in property-related lending in the 2000s. The growth in the aggregate loan balances of Ireland’s six major banks greatly exceeded the growth in gross domestic product (GDP); as a result, bank loan balances grew from 1.1 times GDP in 2000 to over 2.0 times GDP by 2007. Given the small size of the domestic retail depositor base, the Irish banks increasingly funded …

Making The War Colleges Better, Richard A. Lacquement Jr

The US Army War College Quarterly: Parameters

No abstract provided.

Institutionalizing Rights: The Rise And Fall Of The Human Rights Paradigm In Managing Migration, Todd Scribner

Biennial Conference: The Social Practice of Human Rights

In a December 2018 message to a gathering in Rome, Pope Francis challenged attendees to place “human rights at the centre of all policies,” even if it meant going against the grain of popular opinion. The occasion for his message was the 70^th anniversary of the Universal Declaration of Human Rights which, at least rhetorically, placed human rights at the center of the international order. Three years after its proclamation, the United Nations used the Universal Declaration as a key pillar on which it built its Convention Related to the Status of Refugees, thus making human rights a …

The Ira, Social Media And Political Polarization In The United States, 2012-2018, Philip N. Howard, Bharath Ganesh, Dimitra Liotsiou, John Kelly, Camille François

United States Senate Documents

Russia’s Internet Research Agency (IRA) launched an extended attack on the United States by using computational propaganda to misinform and polarize US voters. This report provides the first major analysis of this attack based on data provided by social media firms to the Senate Select Committee on Intelligence (SSCI).

This analysis answers several key questions about the activities of the known IRA accounts. In this analysis, we investigate how the IRA exploited the tools and platforms of Facebook, Instagram, Twitter, and YouTube to impact US users. We identify which aspects of the IRA’s campaign strategy got the most traction on …

The Tactics & Tropes Of The Internet Research Agency, Renee Diresta, Kris Shaffer, Becky Ruppel, David Sullivan, Robert Matney, Ryan Fox, Jonathan Albright, Ben Johnson

United States Senate Documents

Upon request by the United States Senate Select Committee on Intelligence (SSCI), New Knowledge reviewed an expansive data set of social media posts and metadata provided to SSCI by Facebook, Twitter, and Alphabet, plus a set of related data from additional platforms. The data sets were provided by the three primary platforms to serve as evidence for an investigation into the Internet Research Agency (IRA) influence operations. The organic post content in this data set has never previously been seen by the public. Our report quantifies and contextualizes Internet Research Agency (IRA) influence operations targeting American citizens from 2014 through …

Report Of The Select Committee On Intelligence United States Senate On Russian Active Measures Campaigns And Interference In The 2016 U.S. Election: Volume 1: Russian Efforts Against Election Infrastructure, With Additional Views, Select Committee On Intelligence United States Senate

United States Senate Documents

From 2017 to 2019, the Committee held hearings, conducted interviews, and reviewed intelligence related to Russian attempts in 2016 to access election infrastructure. The Committee sought to determine the extent of Russian activities, identify the response of the U.S. Government at the state, local, and federal level to the threat, and make recommendations on how to better prepare for such threats in the future. 1 he Committee received testimony from state election officials, Obama administration officials, and those in the Intelligence Community and elsewhere in the U.S. Government responsible for evaluating threats to elections.

he Russian govemment directed extensive activity, …

Report Of The Select Committee On Intelligence United States Senate On Russian Active Measures Campaigns And Interference In The 2016 U.S. Election: Volume 2: Russia's Use Of Social Media, With Additional Views, Select Committee On Intelligence United States Senate

United States Senate Documents

In 2016, Russian operatives associated with the St. Petersburg-based Internet Research Agency (IRA) used social media to conduct an information warfare campaign designed to spread disinformation and societal division in the United States. Masquerading as Americans, these operatives used targeted advertisements, intentionally falsified news articles, self-generated content, and social media platform tools to interact with and attempt to deceive tens of millions of social media users in the United States. This campaign sought to polarize Americans on the basis of societal, ideological, and racial differences, provoked real world events, and was part of a foreign government's covert support of Russia's …

Population Law And Policy: From Control And Contraception To Equity And Equality, Victoria Mather

St. Mary's Law Journal

Abstract forthcoming

Collaborative Environmental Chemistry Projects: Universiti Kebangsaan Malaysia And The Claremont Colleges, Katie Purvis-Roberts

EnviroLab Asia

I received a course redevelopment grant from the Claremont Colleges EnviroLab Asia for my Environmental Chemistry (CHEM139) course. This allowed me to add a focus on environmental issues in Asia to the course and, more important, co-teach the class with a colleague at the Universiti Kebangsaan Malaysia (UKM).Te many results of that cross-Pacific teaching project are the key subject of this reflective essay.

Towards Universal Design For All: Understanding Japan’S Environment From An Accessibility Standpoint, Bailey Lai

EnviroLab Asia

No abstract provided.

The Feedback Effect: Does Exposure To Interviewer Feedback Affect An Observer's Perception Of Veracity And Guilt?, Kayla A. Harrod

Student Theses

Historically, assessing deception has been rooted in the belief that a guilty suspect displays signs of anxiety. Based on a suspect’s physical demeanor and other behavioral cues presented during an interrogative session, law enforcement personnel (LEP) will utilize a set of techniques to elicit information about a crime. One such technique is the administration of feedback, which is the verbal assessment of a suspect’s guilt. The issue that stems from administering feedback lies not only in how it is given but also how it is received and interpreted by others. In a two-part study, the possibility of a “Feedback Effect” …

The Ferguson Effect In Contemporary Policing: Assessing Police Officer Willingness To Engage The Public, Christopher Mercado

Dissertations, Theses, and Capstone Projects

Researchers suggest that as public scrutiny and video recording of violent/tumultuous police encounters increase, police would back away from proactive enforcement, resulting in an increase in crime—the Ferguson Effect. Recent scholarship refined these concerns over police disengagement with the study of de-policing, while other scholars explored police self-legitimacy, in order to explain law enforcement behavior, given the immediacy and ubiquity of social media and digital communication. This study surveyed 792 law enforcement officers from 10 different police agencies in the United States, to ascertain if police officers’ personal and contextual characteristics influence their decision to either take enforcement action (i.e., …

Lessons Learned: James B. Lockhart Iii, Ben Henken, Dan Thompson

Journal of Financial Crises

Insights from discussions with James B. Lockhart III, who was the Director (CEO) and Chairman of the Oversight Board of the Federal Housing Finance Agency (FHFA) upon the agency’s creation on July 30, 2008. Topics include the conservatorships of Fannie Mae and Freddie Mac as well as other elements of the Bush Administration's 2008 crisis response activities.

Jpmorgan Chase London Whale H: Cross-Border Regulation, Arwin G. Zeissler, Andrew Metrick

Journal of Financial Crises

As a global financial service provider, JPMorgan Chase (JPM) is supervised by banking regulatory agencies in different countries. Bruno Iksil, the derivatives trader primarily responsible for the $6 billion trading loss in 2012, was based in JPM’s London office. This office was regulated both by the Office of the Comptroller of the Currency (OCC) of the United States (US) and by the Financial Services Authority (FSA), which served as the sole regulator of all financial services in the United Kingdom (UK). Banking regulators in the US and the UK have entered into agreements with one another to define basic parameters …

Jpmorgan Chase London Whale G: Hedging Versus Proprietary Trading, Arwin G. Zeissler, Andrew Metrick

Journal of Financial Crises

In December 2013, the primary United States financial regulatory agencies jointly adopted final rules to implement Section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which is often referred to as the “Volcker Rule”. Section 619 prohibits banks from engaging in activities considered to be particularly risky, including proprietary trading and owning hedge funds or private equity funds. Banking regulators designed the final rule against proprietary trading in part to prevent losses like the $6 billion London Whale loss that took place in 2012 at JPMorgan Chase. Given the controversial nature of the Volcker Rule, it is …

Jpmorgan Chase London Whale F: Required Securities Disclosures, Arwin G. Zeissler, Giulio Girardi, Andrew Metrick

Journal of Financial Crises

On April 13, 2012, JPMorgan Chase (JPM) Chief Financial Officer Douglas Braunstein took part in a conference call to discuss the bank’s first quarter 2012 earnings. Coming just a week after media reports first questioned the risks taken by JPM derivatives trader Bruno Iksil, Braunstein made a series of assertions about the trades. On May 10, JPM finalized its first quarter financial results, which included some disclosures regarding Iksil’s trading that were substantially different from Braunstein’s statements of April 13. At issue is whether the regulatory filings on April 13 and May 10, as well as verbal comments by Braunstein …

Jpmorgan Chase London Whale E: Supervisory Oversight, Arwin G. Zeissler, Andrew Metrick

Journal of Financial Crises

As a diversified financial service provider and the largest United States bank holding company, JPMorgan Chase (JPM) is supervised by multiple regulatory agencies. JPM’s commercial bank subsidiaries hold a national charter and therefore are regulated by the Office of the Comptroller of the Currency (OCC). Since the bank’s Chief Investment Office (CIO) invested the surplus deposits of JPM’s commercial bank units, the OCC was also CIO’s primary regulator. During the critical period from late January through March 2012, when CIO traders undertook the failed derivatives strategy that ultimately cost the bank $6 billion, JPM did not provide the OCC with …

Jpmorgan Chase London Whale D: Risk-Management Practices, Arwin G. Zeissler, Andrew Metrick

Journal of Financial Crises

JPMorgan Chase (JPM) prided itself on having the best risk-management practices in the financial industry, having survived the 2007-09 financial crisis in better shape than many competitors. Chief Executive Officer Jamie Dimon often spoke of the bank’s “fortress balance sheet.” A keen focus on risk management is vital to JPM’s longevity, as is the case with all highly leveraged financial institutions. However, the JPM Task Force that investigated the $6 billion 2012 London Whale trading loss concluded that risk-management practices at the bank’s Chief Investment Office (CIO), the unit in which the loss occurred, were given less scrutiny by senior …

Jpmorgan Chase London Whale C: Risk Limits, Metrics, And Models, Arwin G. Zeissler, Andrew Metrick

Journal of Financial Crises

Value at Risk (VaR) is one of the most commonly used ways to measure and monitor market risk. At JPMorgan Chase (JPM), very large derivative positions established by Bruno Iksil in the Synthetic Credit Portfolio (SCP) caused the bank’s Chief Investment Office (CIO) to exceed its VaR limit for four days in a row in January 2012. In response, the CIO changed to a new VaR model on January 30, which appeared to immediately reduce VaR by half. However, JPM soon discovered that this new VaR model had not been properly implemented and the bank went back to using the …

Jpmorgan Chase London Whale B: Derivatives Valuation, Arwin G. Zeissler, Andrew Metrick

Journal of Financial Crises

After consistently producing positive results through 2011, the JPMorgan Chase (JPM) traders who oversaw the bank’s Synthetic Credit Portfolio (SCP) grew alarmed by a consistent string of losses beginning in January 2012. (The SCP was maintained by JPM to help hedge default risk and was the source of the 2012 London Whale trading loss.) To minimize the losses reported to their superiors until such time that market prices hopefully turned in their favor, the SCP traders began valuing their largest derivative positions in a manner that was not consistent with Generally Accepted Accounting Principles (GAAP) and JPM policy. The fair …

The Temporary Liquidity Guarantee Program: A Systemwide Systemic Risk Exception, Lee Davison

Journal of Financial Crises

In the fall of 2008, short-term credit markets were all but frozen, creating liquidity issues for banks and bank holding companies that could not rollover their debt at reasonable rates. Fearing that the situation would worsen if something was not done, the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve Board invoked, and the Secretary of the Treasury approved, the use of the “systemic risk exception” (SRE) under the Federal Deposit Insurance Corporation Improvement Act of 1991, to provide unprecedented broad-based relief to struggling banks. The SRE permitted the FDIC to depart from its “least-cost” requirement when addressing failing …

Pathways, Not Punishment: An Annotated Snap Employment And Training Advocacy Toolkit For Policy Newbies, Angela Eastlund

Student Research – Stevenson Center

For someone brand new to public policy advocacy, the concept can seem broad and putting it to practice can seem vague. In part, this is because the spectrum of public policy advocacy is broad and contains a vast variety of actions under its umbrella. The Chicago Jobs Council’s policy advocacy strategies around SNAP Employment and Training that are recounted in this toolkit are shared in context with the intent of shedding some light on the why, how, and when particular strategies are utilized. Our hope is that the examples shared here can be used to inform anyone that is a …