Lobbying by Financial Institutions Adding to Systemic Risk
A new paper from the International Monetary Fund (not official policy) looks at the impact of lobbying by financial institutions. Excerpts from A Fistful of Dollars: Lobbying and the Financial Crisis 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 [...]
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