gibson by liaoxiuli5

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									Financial Crisis and
 Information Gaps
    Michael Gibson
 Federal Reserve Board
      July 8, 2009
This presentation represents the views of
 the author and should not be interpreted
  as reflecting the views of the Board of
Governors of the Federal Reserve System
       or other members of its staff.
          3 stages of crisis

1. Subprime

2. Liquidity and deleveraging

3. Global shock to confidence
 Information gaps: where to focus?

1. Subprime

2. Liquidity and deleveraging

3. Global shock to confidence
Liquidity and leverage: where were
           the data gaps?

• “Shadow banking system”

  – Maturity transformation and credit-risk-taking
    off the balance sheets of banks
  Elements of shadow banking
            system
– ABCP ($1.2 trillion)
– Money market mutual funds ($3 trillion)
– SIVs ($400 billion)
– Repo markets ($5 trillion)
– GSEs ($1.7 trillion)
– Auction-rate securities ($300 billion)
 Shadow banking system in stress
• Maturity mismatch led to runs
• Some elements disappeared
  – SIVs
  – Auction-rate securities
• Some received extraordinary support
  – ABCP
  – MMMF
  – Repo
  – GSEs
  How to close the data gaps?
• Improve statistics on intermediation
  outside the banking system
  – Shadow banking system
  – Securitization
  – Hedge funds


• Goal: track broad trends

								
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