[FMC 2024] Policy Session 4: Government Absorption of Financial Risks during Crisis

The United States has long used government guarantees and bailouts to counter threats to financial instability, but there was a quantum increase in the size and scope of those guarantees during the global financial crisis and at the start of the pandemic. Although these recent guarantees and bailouts have been presented as "costless" or even "moneymaking" for taxpayers, these calculations ignore the risks shifted to taxpayers. This session will discuss the actual contemporaneous economic costs of guarantees and bailouts. It will also consider the extent of current guarantees and their costs and benefits. Finally, the session will consider what, if anything, may be done to scale back guarantees.
Moderator: Ron Feldman, First Vice President, Federal Reserve Bank of Minneapolis
Panelist: Deborah Lucas, Sloan Distinguished Professor of Finance, MIT Sloan School of Management, and Director, MIT Golub Center for Finance and Policy
Panelist: Phil Strahan, Finance Professor, Boston College
Panelist: Kevin Warsh, Shepard Family Distinguished Visiting Fellow in Economics, Hoover Institution, and Lecturer, Stanford Graduate School of Business
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The Financial Markets Conference, the Atlanta Fed's signature policy and research event, convenes leading experts to discuss emerging financial market issues and their monetary policy implications. Learn more here: atlfed.org/3Tq...