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Federal Reserve Bank of San Francisco | The Last Resort in a Changing Landscape

Money Marketeers of New York University Webinar New York, NY For delivery on Tuesday, April 15, 2021 2:00 P.M. EDT Introduction I grew up in Missouri surrounded by three rivers. Nearly every spring, at least one of them would flood. Each time this happened, families, businesses, and sometimes whole communities, would be forced to higher ground until the water receded and returned to its banks. Public programs were there to assist. Teams helped people evacuate, temporary shelters were stood u...
New York United States National Bureau Of Economic Research San Francisco Robertf Engle Julien Matheron
Source: frbsf.org

The corporate "dash for cash" and banks' pullback from risk-taking

The corporate โ€œdash for cashโ€ and banksโ€™ pullback from risk-taking Image In spring 2020, stay-at-home policies aimed at containing the spread of the coronavirus led to a sharp decline in the revenues of nonfinancial firms. To shore up cash positions and ride out the crisis, firms approached their banks and drew down on pre-committed lines of credit. As a result, between early March and the end of April, the banking system was hit by a tidal wave of credit line drawdowns (figure 1), estima...
Robertf Engle Roberts Fletcher Marianne Bertrand Camelia Minoiu Philipe Strahan Michael Luca

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