Join the #MITSloanExperts “Financial Regulation: What Lies Ahead” Twitter chat, October 30

MIT Sloan Prof. Deborah Lucas

Pensions & Investments Editor Amy Resnick

Deborah Lucas, the Distinguished Professor of Finance at MIT’s Sloan School of Management, and the Director of the MIT Golub Center for Finance and Policy, will discuss the 10-year anniversary of the financial crisis during an #MITSloanExperts Twitter chat on October 30 at 12 p.m. EDT.

As the 10-year anniversary of the great financial crisis approaches, Lucas will focus on answering what have we learned and whether we have made enough progress to prevent a repeat of something similar. Lucas’ recent research has focused on measuring and accounting for the costs and risks of government financial obligations. Her academic publications cover a wide range of topics including the effect of idiosyncratic risk on asset prices and portfolio choice, dynamic models of corporate finance, financial institutions, monetary economics, and valuation of government guarantees. An expert on federal credit programs, she has testified before Congress on budgeting for Fannie Mae and Freddie Mac, student loans, and on strategically important financial institutions.

The host of the chat will be Amy Resnick, editor of Pensions & Investments. Resnick will ask Lucas questions about the future of financial regulation and housing market finance reform, as well as ideas for fostering stronger ties between the regulatory and the academic communities.

To join the chat, be on Twitter on October 30 at 12 p.m. ET and follow the hashtag #MITSloanExperts. Questions can be submitted in advance or in real-time, using #MITSloanExperts.

Antoinette Schoar: The case for unwinding Fannie and Freddie

MIT Sloan Prof. Antoinette Schoar

From CBS News

Today Fannie Mae and Freddie Mac–two government-sponsored enterprises originally designed to increase the availability of loans and thereby raise levels of home ownership–dominate the US mortgage lending market. Fannie Mae, which was established in 1938 as part of Franklin Delano Roosevelt’s New Deal, provides local banks with federal money to finance home mortgages. Freddie Mac, created in 1970, underwrites mortgages that fall below a certain size threshold with the intention of helping homeowners get access the housing market. These mortgages are cheaper since they implicitly–and after 2008 explicitly–benefited from a government guarantee.

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