Part 6: The Financial Institutions Industry

Much of the dynamism in the financial world arises from changes in the structure and operations of financial institutions and from financial innovation that occurs in response to changes in the economic environment. Readings for Part 6 cover financial innovation, banking industry structure and regulation, credit unions, the mutual funds industry, and pension funds.

1. Chapter 17:
   "House Prices and Bank Loan Performance.” John Krainer, FRBSF Economic Letter No. 2009
2. Chapter 18:
   "Industrial Loan Companies Come Out of the Shadows ." Michelle Clark Neely, The Regional Economist, Federal Reserve Bank of St. Louis, July 2007, 5-9.

"Branch Bonanza." Doug Campbell, Region Focus, Federal Reserve Bank of Richmond, Winter 2005, 12-17.

"Banking Consolidation." Simon Kwan, FRBSF Economic Letter No. 2004-15, Federal Reserve Bank of San Francisco, June 18, 2004.

3. Chapter 20:
   "Federal Preemption of State Bank Regulation: A Conference Panel Summary." Erin Davis and Tara Rice, Chicago Fed Letter 230a, Federal Reserve Bank of Chicago, September 2006.

"Why Economists Still Worry About Bank Runs." Doug Campbell, Region Focus, Federal Reserve Bank of Richmond, Fall 2005, 36-38.

"Too Big to Fail: The Way Forward.” Gary H. Stern, The Region 22(4), Federal Reserve Bank of Minneapolis, December 2008, 2-6.

“The Costs and Benefits of Bank Supervisory Disclosure.” Edward Simpson Prescott and Stephen Slivinski, Economic Brief EB09-05, Federal Reserve Bank of Richmond, May 2009.

“Seeking Stability: What’s Next for Banking Regulation?” Simona E. Cociuba, Economic Letter 4 (3), Federal Reserve Bank of Dallas, April 2009.

“If Fed Becomes Super Regulator, Politicians Would Be Its Kryptonite.” Sharon K. Blei, The Regional Economist, Federal Reserve Bank of St. Louis, January 2009, 14-15.

4. Chapter 21:
   "Mutual Funds, Fee Transparency, and Competition." John B. Carlson, Eduard A. Pelz, and Erkin Y. Sahinoz, Economic Commentary, Federal Reserve Bank of Cleveland, March 1, 2004.
5. Chapter 22:
   "The Present and Future of Pension Insurance." Simon Kwan, FRBSF Economic Letter 2003-25, Federal Reserve Bank of San Francisco, August 29, 2003.

"Social Security Restructuring: Tough Decisions Ahead." Jason L. Saving and Alan D. Viard, Southwest Economy, Federal Reserve Bank of Dallas, September/October 2003, 13-17.