{"id":1399,"date":"2011-08-13T10:23:21","date_gmt":"2011-08-13T14:23:21","guid":{"rendered":"http:\/\/jamie.workingagenda.com\/blog\/?p=1399"},"modified":"2018-10-22T12:30:39","modified_gmt":"2018-10-22T16:30:39","slug":"the-economic-costs-of-lobbying-of-financial-institutions-and-mortgage-companies-in-the-u-s","status":"publish","type":"post","link":"http:\/\/jamie.workingagenda.com\/blog\/2011\/08\/13\/the-economic-costs-of-lobbying-of-financial-institutions-and-mortgage-companies-in-the-u-s\/","title":{"rendered":"The economic costs of lobbying of financial institutions and mortgage companies in the U.S."},"content":{"rendered":"<abbr class=\"unapi-id\" title=\"\"><!-- &nbsp; --><\/abbr>\n<p>Larry Lessig tweeted a link about this.  In 2009, an IMF research paper took a look at the consequences of lobbying by financial institutions and mortgage companies in the U.S.<!--more--><\/p>\n<blockquote><p>WP\/09\/287<br \/>\nIMF Working Paper, Research Department<br \/>\n<a href=\"www.imf.org\/external\/pubs\/ft\/wp\/2009\/wp09287.pdf\">A Fistful of Dollars: Lobbying and the Financial Crisis<\/a><br \/>\nPrepared by Deniz Igan, Prachi Mishra, and Thierry Tressel<br \/>\nAuthorized for distribution by Stijn Claessens<br \/>\nDecember 2009<\/p><\/blockquote>\n<p>Among the author&#8217;s conclusions:<\/p>\n<blockquote><p>We show that lenders that lobby more intensively on these specific issues have (i) more lax lending standards measured by loan-to-income ratio, (ii) greater tendency to securitize, and (iii) faster growing mortgage loan portfolios. Ex post, delinquency rates are higher in areas in which lobbying lenders\u2019 mortgage lending grew faster, and, during key events of the crisis, these lenders experienced negative abnormal stock returns. <\/p><\/blockquote>\n<p>A revised version was later published on March 21, 2011 as <a href=\"http:\/\/www.nber.org\/~confer\/2011\/Macro11\/Igan_Mishra_Tressel.pdf\">an NBER working paper with the same title<\/a>, and which was a subject of this April 26, 2011 <a href=\"http:\/\/blogs.wsj.com\/economics\/2011\/04\/26\/lenders-who-lobbied-hardest-for-deregulation-took-most-risks\/\">blog in the WJS<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Larry Lessig tweeted a link about this. In 2009, an IMF research paper took a look at the consequences of lobbying by financial institutions and mortgage companies in the U.S.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[80,1],"tags":[],"_links":{"self":[{"href":"http:\/\/jamie.workingagenda.com\/blog\/wp-json\/wp\/v2\/posts\/1399"}],"collection":[{"href":"http:\/\/jamie.workingagenda.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/jamie.workingagenda.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/jamie.workingagenda.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"http:\/\/jamie.workingagenda.com\/blog\/wp-json\/wp\/v2\/comments?post=1399"}],"version-history":[{"count":8,"href":"http:\/\/jamie.workingagenda.com\/blog\/wp-json\/wp\/v2\/posts\/1399\/revisions"}],"predecessor-version":[{"id":1479,"href":"http:\/\/jamie.workingagenda.com\/blog\/wp-json\/wp\/v2\/posts\/1399\/revisions\/1479"}],"wp:attachment":[{"href":"http:\/\/jamie.workingagenda.com\/blog\/wp-json\/wp\/v2\/media?parent=1399"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/jamie.workingagenda.com\/blog\/wp-json\/wp\/v2\/categories?post=1399"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/jamie.workingagenda.com\/blog\/wp-json\/wp\/v2\/tags?post=1399"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}