Editor's Note: This is a monthly publication on economic trends and financial policy issues. In this publication you can read "The Longbrake Letter", an analysis of economic trends and conditions written by Bill Longbrake, as well as commentary on financial regulation and policy written by members of the law firm Barnett, Sivon & Natter, P.C., a Washington, DC based law firm that specializes in financial services law. The lawyers in the firm are also counsel to the international law firm, Squire Patton Boggs.

ISSUE: #84, July/August 2017

The Longbrake Letter
- Bill Longbrake
Summers are customarily a time to go on holiday, spend time with family and friends and recharge one’s “batteries” in preparation for the onslaught of fall duties and obligations. Except for “fire and fury” comments about North Korea, the dog days of August are upon us. No financial markets crisis of any sort appears imminent. That could change when Labor Day passes and market participants put aside the mellow days of summer and take a harder look at economic and market prospects. So, in the absence of any significant economic developments and the likelihood that economic challenges and financial markets volatility is a long ways off, this summer’s July/August combined Longbrake Letter focuses on recent data reports and revisions in previously reported data. For now, the economy and markets are advancing slowly and methodically.

The Mechanics of a Receivership for Fannie Mae and Freddie Mac
- Jim Sivon and Ray Natter
This article explains how the receivership provisions in the Housing and Economic Recovery Act of 2008 apply to Fannie Mae and Freddie Mac, and how those provisions intersect with the U.S. Treasury’s commitment to provide financial support for the Enterprises under the Preferred Stock Purchase Agreements.

InStAbILItY: Booms, Busts, the Fragility of Banks And What To Do about It
- Martin Lowy
Using historical data on U.S. banking and financial stresses from WWII to 2017, Instability explains why and how regulatory capital requirements did not work when based on historical financial statements and why and how stress-tested, forward-looking regulatory capital requirements do and will work to strengthen banks and to make them capable not only of surviving deep recessions, but also capable of continuing to support the credit needs of the economy in such situations. This edition omits most of the supporting data. The full book is available in Kindle format for $5.

     
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