The Little-Known Entity Thats Lent Over $1 Trillion To U.S. Banks (10x The Fed!) | Professor Kathryn Judge on The Federal Home Loan Bank (FHLB) System
b'Since the fall of Silicon Valley Bank (SVB) in March 2023, many investors have been closely monitoring the Federal Reserve\\u2019s recent lending to U.S. banks, which amounts to roughly $100 Billion as of late June.\\nWhat has received far less attention is the Federal Home Loan Bank (FHLB) system, which has extended over $1 Trillion of liquidity (10x the Fed!) to banks throughout the U.S.\\nKathryn Judge, Harvey J. Goldschmid Professor of Law at Columbia Law School, joins Forward Guidance to explain the history and purpose of the FHLBanks, calling them the \\u201clender of second-to-last resort.\\u201d Judge argues that the FHLB system has grown beyond its original mission and that reform is desperately needed. Judge also opines on the SEC\\u2019s move to regulate crypto, as well as SOFR\\u2019s replacement of LIBOR. Filmed on June 29th, 2023.\\n____\\nFollow Kathryn Judge on Twitter https://twitter.com/ProfKateJudge\\nFollow Jack Farley on Twitter https://twitter.com/JackFarley96\\nFollow Forward Guidance on Twitter https://twitter.com/ForwardGuidance\\nFollow Blockworks on Twitter https://twitter.com/Blockworks_\\n____\\nKathryn Judge\\u2019s book, \\u201cDirect: The Rise of the Middleman Economy and the Power of Going to the Source\\u201d: https://kathrynjudge.com/books/direct\\n\\u201cThe Problem Lender of Second-to-Last Resort\\u201d: https://prospect.org/economy/2023-03-29-problem-lender-federal-home-loan-banks/\\n____\\nUse code GUIDANCE20 to get 20% off Permissionless 2023 in Austin:\\nhttps://blockworks.co/event/permissionless-2023\\nResearch, news, data, governance and models \\u2013 now, all in one place. As a listener of Forward Guidance, you can use code GUIDANCE10 for a 10% discount when signing up to Blockworks Research https://www.blockworksresearch.com/\\n____\\nGet top market insights and the latest in crypto news. Subscribe to Blockworks Daily Newsletter:\\nhttps://rb.gy/5weeyw\\nMarket commentary, charts, degen trade ideas, governance updates, token performance, can\\u2019t-miss-tweets and more. Subscribe to the Blockworks Research \\u201cDaily Debrief\\u201d Newsletter: https://rb.gy/feusos\\n____\\nTimestamps:\\n(00:00) U.S. Banking System Is "Uneven"\\n(03:06) What Is The Federal Home Loan Bank (FHLB) System?\\n(07:24) Deregulation in 1980s and 1990s\\n(11:22) Commercial Banks vs. Thrifts (And Glass\\u2013Steagall)\\n(17:31) FHLB Lending During Great Financial Crisis (GFC)\\n(25:14) "FHLB Has Never Lost Money On Advances"\\n(33:54) FHLB\'s "Abuses" Must Stop\\n(34:28) Permissionless\\n(41:24) What Will New Bank Regulation Look Like?\\n(50:38) Risk-Weighting In Bank Capital Regulations\\n(53:42) Blockworks Research\\n(54:42) Held-To-Maturity Accounting\\n(58:37) The Rise Of Middlemen in Finance And Business\\n(01:06:00) SEC\'s War With Crypto\\n(01:08:04) The End Of LIBOR Eurodollar Contracts\\n____\\nDisclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.'