The Federalist Society

How Did We Get into the Mess We Are in Today? - Event Audio/Video

The Financial Services Bailout

March 19, 2009

Bert Ely, James Carr, Timothy Canova, Wayne A. Abernathy, Craig L. Hymowitz

The Financial Services Bailout 

The following audio and video were recorded on March 19, 2009.

Presentation by Bert Ely of a paper titled: "Bad Rules Produce Bad Outcomes: Underlying Public Policy Causes of the U.S. Financial Crisis."  The paper first discusses those aspects of behavioral economics that relate to the financial crisis.  The paper then discusses numerous public policy causes (eleven at last count) of the crisis and offers specific recommendations for ameliorating those causes.  Ely asserts that causes include the Internal Revenue Code, which incents overleveraging and undersaving; banking regulation, specifically regulatory capital requirements; fair-value accounting; the First Amendment protection the credit-rating agencies enjoy; the role the housing GSEs play in mortgage finance; mispriced deposit insurance; the overpromotion of home ownership (including criticism of CRA); the residual effects of Glass-Steagall; monetary policy; the existence of OTC credit-default swaps where there is no insurable interest; and FDIC regulations which discourage the use of covered bonds to finance fixed-rate mortgages and other long-life financial assets.  A panel of experts will respond to the presentation.

How Did We Get into the Mess We Are in Today? 3-19-09
Running Time: 01:28:58
[ Full Audio]
[ Full Video]

THURSDAY, MARCH 19
10:40 a.m. - 12:15 p.m.

Panel I:  How Did We Get into the Mess We Are in Today?

  • Mr. Bert Ely, President, Ely & Company
  • Mr. James H. Carr, Chief Operating Officer, National Community Reinvestment Coalition
  • Prof. Timothy Canova, Associate Dean for Academic Affairs, Chapman University School of Law
  • Hon. Wayne Abernathy, Executive Vice President, Financial Institutions Policy and Regulatory Affairs, American Bankers Association
  • Moderator: Mr. Craig L. Hymowitz, Partner, Blank Rome LLP

National Press Club
Washington, DC

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