Influence of Large Banks on Bank Industry Risk
Harikumar Sankaran, New Mexico State University and Manish Saxena, Sanda Investment Group of Wells Fargo Advisors
Systemic risk refers to the risk that the financial system will suffer losses, thereby imposing losses on investors. It involves the correlation among several parts of the financial system, so that losses in one element imply losses in other elements. In banking, systemic risk is manifested by high correlation and clustering of bank distress or bank failures in a single country or internationally.
Complete Article: Influence of Large Banks on Bank Industry Risk
Issuing Drivers Licenses to Undocumented Immigrants: Does It Reduce the Percentage of Uninsured Motorists?
Tim Query, New Mexico State University
In 2003, Governor Bill Richardson signed legislation to allow people who are in this country unlawfully to obtain a New Mexico driver’s license. Proponents argue that this policy reduces the number of uninsured motorists. However, preliminary investigation of uninsured motorist rates finds evidence for this argument is mixed at best.
Christopher A. Erickson and James Libbin
Complete Article: Talking Points