An article from the Economists for combining financial markets, moral hazard and subsidies - triple whammy!
The article looks at the issues in the US's mid-sized banking sector and the structural role of Federal Home Loan Banks in providing cheap, government-backed liquidity. It serves as a more recent case study than the financial crisis!
There is a good haul of vocab to either discuss or set students to explain as an activity or homework task.
troubled loans
commercial real estate
rent-stabilised
assets
lenders
loan-to-value ratios
write-downs
balance-sheet
liquidity
advances
Treasury
dollar-denominated bonds
yield
Treasuries
subsidy
secured loans
Federal Reserve
regulators
depositors
penalty interest rate
taxpayer-backed privileges