Yale Program on Financial Stability

Can emergency liquidity programs resolve runs on financial institutions? A nice piece from @StevenKelly49, Arnold, Feldberg, and Metrick published last year studies 22 emergency liquidity programs targeted at specific firms (e.g., Bear Stearns, Northern Rock, Citi, Credit Suisse, First Republic...). Key findings: In none of the cases they surveyed did liquidity provision provide the "cure." Almost all cases required some fundamental balance sheet restructuring. While policy makers sometimes invoke the concern that they want to avoid "illiquid but solvent" firms from becoming insolvent, this rarely seems to be the fundamental issue in most episodes of funding pressure/runs. The piece is also a nice example of the value of careful case studies. elischolar.library.yale.edu/journal-of-fin…

Thanks to Nick Timiraos (@NickTimiraos) for citing my interview with Kevin Warsh from my forthcoming book, Fed Reckoning: Conversations on America's Central Bank (@yalepress, @YPFSatYale): wsj.com/politics/polic…

Every financial crisis involves the fundamental mispricing of an asset and leverage. See @YPFSatYale Journal article I wrote: elischolar.library.yale.edu/cgi/viewconten…

Technical achievement -- with help from @AidData and the Yale Financial Stability Project, I think I was able to construct a time series of the drawn portion of Argentina's swap line 1/2

This 1-year, in-residence program gives early/mid-career employees of central banks, treasuries, regulators, bank risk teams (& more!) exposure to leading ideas in financial crisis management, financial regulation, macroprudential policy, crisis communications, & central banking.

🚨🚨 Calling all financial stability professionals! The application for next year's Master's in Systemic Risk program is now LIVE: som.yale.edu/programs/mms-s… Please share with your networks! You can reach out with questions to somsysrisk@yale.edu

The next must-have accessory for crypto and tech bros is far less sexy than a Lamborghini — it’s a banking license. But Circle, Erebor, Ripple and others will be too tied to hyper-volatile sectors, just like Silicon Valley Bank in 2023. Via @opinion bloomberg.com/opinion/articl…

You can read the whole thing here! Fantastic stuff from Steve, that helped me understand all of this in a useful, new light. bloomberg.com/news/newslette…

WHEN SHOULD WE CARE ABOUT UNREALIZED BANK LOSSES? The great @StevenKelly49 has written a great (long) guest contribution to the Odd Lots newsletter, looking back at lessons learned from the SVB disaster, and what risks are (or aren't lurking today on bank balance sheets

This year, the program will conclude the New Bagehot Project, an unprecedented, decade-long effort to chronicle and analyze responses to financial crises throughout history and around the world, and shift its focus to dissemination of its findings.

"Yale Program on Financial Stability Presents Financial Crisis-Fighting Playbook" som.yale.edu/story/2025/yal…

🏦 How do you resolve a banking crisis? Join this hands-on course by the IMF, in collaboration with the Yale Program on Financial Stability and the JVI, to find out! 🔗 Apply now: bit.ly/4jPRy2c @IMFNews @YPFSatYale

🏦 How do you resolve a banking crisis? Join this hands-on course by the IMF, in collaboration with the Yale Program on Financial Stability and the JVI, to find out! 🔗 Apply now: bit.ly/4jPRy2c @IMFNews @YPFSatYale

Now out as a policy brief with the European Money and Finance Forum: "Ad Hoc Emergency Liquidity Assistance in the 21st Century: Necessary, but Never Sufficient": suerf.org/publications/s…

“If you’re going to mandate collateral pre-positioning, you really need to make it possible for people to do this without much difficulty” – Susan McLaughlin, Yale School of Management hubs.li/Q03rjDY30

This looks very interesting! The Banco de Mexico is holding its 6th Biennial Conference on Financial Stability in Mexico City on November 18th -19th, 2025. "The objective is to convene academics, practitioners and policymakers to assess the progress made by central banks in designing and implementing policies aimed at strengthening the financial system’s resilience in both emerging and advanced economies. The main theme of the conference is extensive in nature, encompassing topics related to central banking theory and practice, the preservation of financial stability, monetary policy making and communication, and the effectiveness of macroprudential policy. Submissions from junior researchers are welcomed." banxico.org.mx/publicaciones-…

In the weekend edition of the DealBook newsletter: Two years after the collapse of Silicon Valley Bank, no major legislation or regulation has passed, and the basic problem that caused the crisis persists.nyti.ms/3ZqJvBs by @petercoy

"What Has Changed Since Silicon Valley Bank Collapsed? Not Much." nytimes.com/2025/05/17/bus…

In the weekend edition of the DealBook newsletter: Two years after the collapse of Silicon Valley Bank, no major legislation or regulation has passed, and the basic problem that caused the crisis persists.nyti.ms/44NIash by @petercoy

Credit Suisse was a bank from which a thousand case studies will bloom. Now out in the Journal of Financial Crises—with Jack French and Owen Heaphy: We take a look at the Swiss emergency liquidity assistance, which CS drew on for over $180 billion: elischolar.library.yale.edu/journal-of-fin…