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Article: On the importance of the plumber: the intersection of theory and practice in policymaking for federal financial institutions.(bankers conference)
- Article from:
- Federal Reserve Bank of St. Louis Review
- Article date:
- July 1, 2006
- Author:
CopyrightCOPYRIGHT 2006 Federal Reserve Bank of St. Louis. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The federal government's role as lender and insurer is very important, with over $1.4 trillion of loans and guarantees and at least $7 trillion of insured risk. Tens of millions of Americans benefit from housing loans, student loans, flood insurance, etc. Yet the federal financial institutions established to run these activities are often created almost as an afterthought, with little focus on their structure. This paper emphasizes the crucial importance of ending this neglect and recognizing how proper structure can help avoid major failures, such as the current problems at the Pension Benefit Guaranty Corporation, and enhance successes. The author also challenges the ...