RESEARCH AND COMMENTARY
Douglas J. Elliott, May 11, 2010, Senate Finance Committee
In congressional testimony, Douglas Elliott discussed the proposed “Financial Crisis Responsibility Fee,” arguing that it is a reasonable solution to recovering taxpayer losses on the TARP and ensuring that these losses fall on the financial industry, not the public. Read More
RESEARCH AND COMMENTARY
Douglas J. Elliott, January 14, 2010, The Brookings Institution
President Obama announced a plan to levy a tax on financial institutions to cover the cost of the taxpayer bailout. Douglas Elliott says the proposal makes sense from a political and policy perspective although all taxes have a cost. He also analyzes how the announcement will impact the lobbying efforts surrounding financial reform legislation pending in Congress. Read More
RESEARCH AND COMMENTARY
Douglas J. Elliott, August 31, 2009, Marketplace - National Public Radio
Senior Fellow Douglas Elliott talks with Kai Ryssdal about how the Treasury has made close to $4 billion from its bank bailout, and whether it's actual profit. Read More
VIDEO
Douglas J. Elliott, July 21, 2009
Treasury’s special inspector general issued a blistering report about the $750 billion TARP program, saying it has not been transparent in managing taxpayers’ money and hasn’t required enough disclosure from firms participating in the program. Douglas Elliott says despite the report, the TARP program appears to have prevented a financial meltdown, adding that the economy is showing some small signs of improvement.
RESEARCH AND COMMENTARY
Martin Neil Baily and Douglas J. Elliott, June 15, 2009, The Brookings Institution
The economy is showing signs that it is likely bottoming out and heading toward a weak recovery, but we need to keep our optimism—and our policy actions—in check, argue Martin Baily and Douglas Elliott. Many risks remain for both the banking system and the larger economy, and they argue for increased focus on existing financial rescue plans and the banking sector. Read More
RESEARCH AND COMMENTARY
Douglas J. Elliott, June 09, 2009, The New York Times
The Treasury Department has cleared the way for 10 big banks to start repaying $68.3 billion in taxpayer aid. The administration, however, plans to introduce new compensation guidelines that would apply to financial companies, including those that returned taxpayer money. What new federal restrictions, if any, should be imposed on the banks leaving TARP? More broadly, does this move by the Treasury Department show that its financial recovery programs are working? Douglas Elliott and other experts discuss these issues. Read More
RESEARCH AND COMMENTARY
Martin Neil Baily and Robert E. Litan, May 06, 2009, Senate Committee on Banking, Housing and Urban Affairs
In testimony to the Senate Banking Committee, Martin Baily and Robert Litan discussed the "too big to fail" conundrum, saying large institutions are necessary but must be regulated in a way that at least partially offsets the risks they pose to the rest of the financial system. They also say Congress needs to provide more Treasury TARP funds, maybe on a large scale, but that such a move will ultimately cost less than bank nationalization. Read More
RESEARCH AND COMMENTARY
Douglas J. Elliott, April 21, 2009, The Brookings Institution
Several prominent economists continue to push for the government to nationalize the nation’s weakest banks before they bleed the Treasury and taxpayers dry. Douglas Elliott says nationalization is risky and costly and therefore should be the last resort, but policymakers need to be ready in case it is needed. He writes a 15-step “survival manual” with suggestions for minimizing the damage from nationalization, especially the costs to taxpayers. Read More
RESEARCH AND COMMENTARY
Barry P. Bosworth and Aaron Flaaen, April 14, 2009, The Brookings Institution
Barry Bosworth and Aaron Flaaen summarize some research on the origins of the financial crisis and trace the evolution of the credit panic that hit in late 2008, its impact on the real economy, and the extraordinary policy actions that have been taken to mitigate the economic losses. Read More
RESEARCH AND COMMENTARY
Robert E. Litan, March 30, 2009, The Brookings Institution
The Treasury Department recently released its plan to fix the financial system, which rightly concentrates on reducing systemic risk, argues Robert Litan. While there are legitimate concerns about vesting such large responsibilities with any financial regulator, as long as there are financial institutions whose failure could lead to calamitous financial and economic consequences, then some arm of the federal government must oversee systemic risk and do the best it can to make that oversight work. Read More
RESEARCH AND COMMENTARY
Douglas J. Elliott, March 23, 2009, The Brookings Institution
Treasury Secretary Timothy Geithner’s plan announced on Monday to move some $1 trillion in toxic assets off of the balance sheets of the banks helps remove the uncertainty from the financial system although it will not fix the credit crisis on its own, according to Douglas Elliott. Strong concerns remain about whether the Public Private Investment Program (PPIP) will succeed—the program could either fizzle or prove to be too expensive for the taxpayer—but there are also some grounds for hope. Read More
RESEARCH AND COMMENTARY
Martin Neil Baily and Douglas J. Elliott, March 17, 2009, FinReg21
In this article Martin Baily and Douglas Elliott discuss what it will take to stabilize the banks. They call for an adequate amount of capital to be injected into the banks and for the troubled assets be moved out of the banks or their impact neutralized. They agree that both of these actions will be very expensive for the taxpayers, involving significant risk of large future losses, but warn that the costs of stabilizing the banks will be very large indeed, and the sooner policymakers face up to that, the better. Read More
RESEARCH AND COMMENTARY
Susan Helper and Howard Wial, March 04, 2009, The Brookings Institution
Putting the U.S. auto industry on the high road to recovery will require more than a quick financial fix. Susan Helper and Howard Wial urge automakers and the government to address the underlying impediments to their long-term viability. Read More
RESEARCH AND COMMENTARY
Douglas J. Elliott, March 03, 2009, The Brookings Institution
The administration’s new “stress tests” for the 19 largest banks will likely result in substantial new infusions of government money to bolster their capital. Douglas Elliott explains what “capital” is; how to measure whether a bank has enough of it; and what the stress test and capital proposals are. He applauds these actions as “right on virtually all counts.” Read More
RESEARCH AND COMMENTARY
Douglas J. Elliott, February 25, 2009, The Brookings Institution
Bank nationalization—the topic du jour in Washington and on Wall Street—means different things to different people. Although nationalization is a serious and extreme step with high social and financial costs, Douglas Elliott believes full nationalization may be needed only as a last resort for one or two of the nation’s larger banks, with more widespread nationalization unlikely. But, he says, it may make sense for the government to partially nationalize additional large banks now, in an effort to bring some certainty to the markets. Read More