Our Perspectives

    View Authors July 2018

    For more than 8 years, the Our Perspectives newsletter has been providing insights on the economy and public policy issues affecting the financial services industry.

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    The Longbrake Letter – June 2018 Outlook Assessment
    By Bill Longbrake, guest author and Executive-in-Residence at the University of Maryland Robert H. Smith School of Business
    U.S. and global growth continues to be strong and exceeds potential. The June Outlook Assessment evaluates U.S. and global 2018 forecasts made at the beginning of the year. Practically all economies are growing above potential and little to no slack remains in most. While U.S. data remain firmly in boom territory, recent global data, especially for Europe and emerging markets, reflect that peak growth rates have passed.
     
    The Longbrake Letter 
    By Bill Longbrake, guest author and Executive-in-Residence at the University of Maryland Robert H. Smith School of Business
    Is today’s euphoria the precursor of the next financial crisis? While most global economies are enjoying above potential growth, signs of potential trouble ahead are beginning to surface. In Europe, Italy’s new populist government coalition may rekindle the dormant European Union existential crisis. Some emerging markets are experiencing moderate financial stresses as U.S. interest rates rise and the dollar’s exchange value firms. A global trade war, a possibility since the election of President Trump, may be on the verge of heating up. In this month’s letter, Bill Longbrake examines these developing risks. He advises readers to enjoy the good times now because history tells us that strong economic momentum, when the economy is operating above full capacity, eventually leads to recession and correction of the imbalances that built up during the euphoric period of overly strong growth.   

    Proposed Capital Requirements for Fannie Mae and Freddie Mac
    By Jim Sivon
    This article reviews Federal Housing Finance Agency's (FHFA) proposed a new regulatory capital framework for Fannie Mae and Freddie Mac (the Enterprises). This proposed framework includes a new risk-based capital requirement and new alternative leverage requirements for the Enterprises

    Starting and Stopping the Clock on the BCFP Director's Term
    By Katie Wechsler
    The leadership changes at the Bureau of Consumer Financial Protection (“BCFP” or “Bureau”) have raised several questions regarding succession at the agency and nuances of the term limits for the Acting Director. This article attempts to provide some clarity on these issues. 

    Recent Developments in the Federal Insurance Office

    By Pat Hatler, Mary Jo Hudson and Brandon Roman
    There have been a number of developments surrounding the Federal Insurance Office in recent weeks, including:
    • New Director Likely to Be Named
    • President Signs Bill Expanding Oversight of FIO’s International Activity, but Questions Its Constitutionality
    • House Considers Legislation Reducing FIO Authority