Ken Scott, Kimberly Summe, Tom Jackson, Andrew Crockett, Richard Herring, Bill Kroener, John Taylor, Johannes Stroebel


Next meeting: October 31, 2pm
December 10th Meeting: A full-day conference with the title “Making Failure Tolerable” will be held at Hoover. The meeting will result in a publication similar to “The Road Ahead for the Fed”, with policy makers and their staff as the intended audience. The topics discussed will include and expand on the topics considered by the Resolution Project: It will not just consider Chapter 11 (f), but potentially also increased capital requirements and other proposals.


The group discussed the creation of a set of general criteria to apply to models of failure:

  1. The losses entailed in failure should extend beyond shareholders to creditors in proportion to the extent of loss and seniority of claims.

  2. Procedures regarding dealing with spillovers from failure beyond claimants on the firm need to be established. This may involve giving some party a payment to which it may not be entitled in a strict loss-allocation framework, and may potentially be in conflict with (1). Three relevant examples of such spillovers were considered in detail:
    1. OTC derivatives
    2. Interbank Market Effects
    3. Banks’ dependence on their ability to re-use collateral that clients are posting

      It was decided that the RP needs to rationalize and review the existing categories of who can file for bankruptcy (insurance company, broker, bank holding company)

  3. Efficient liquidation was considered a crucial aspect of a new system for working out failure

  4. Consistency or predictability of regulatory behavior also is a crucial factor.

Upcoming Events

Wednesday, December 13, 2023
How Big Is the Media Multiplier? Evidence from Dyadic News Data? | A Workshop Series On Using Text As Data In Policy Analysis
Our 21st meeting features a conversation with Thiemo Fetzer on How Big Is the Media Multiplier? Evidence from Dyadic News Data? on Wednesday,… Hoover Institution, Stanford University
Thursday, December 14, 2023
How Veterans Continue Public Service in the Civilian Sector
A Post-9/11 Veteran Town Hall Discussion with local veterans Cathy Cohn, Mikhail Venikov and Veteran Fellowship Program Fellows Michael Wendler and… Elks Lodge, San Mateo, CA
Saturday, January 13, 2024
US Armed Forces Recruiting Station
How Will the US Recruit and Retain Today for Tomorrow
A Post-9/11 Veteran Town Hall Discussion with Representative Mike Gallagher; General James N. Mattis (ret), USMC, 23rd Secretary of Defense; Ben… VFW Duck Creek Post 7534, Green Bay, WI
overlay image