Does "skin in the game" reduce risk taking? Leverage, liability and the long-run consequences of new deal financial reforms

We examine how the Banking Acts of the 1933 and 1935 and related New Deal legislation influenced risk taking in the financial sector of the U.S. economy. Our analysis focuses on contingent liability of bank owners for losses incurred by their firms and how the elimination of this liability influenced leverage and lending by commercial banks. Using a new panel data set that compares balance sheets of state and national banks, we find contingent liability reduced risk taking, particularly when coupled with rules requiring banks to join the Federal Deposit Insurance Corporation. Leverage ratios are higher in states with limited liability for bank owners. Banks in states with contingent liability converted each dollar of capital into fewer loans, and thus could sustain larger loan losses (as a fraction of their portfolio) than banks in limited liability states. The New Deal replaced a regime of contingent liability with stricter balance sheet regulation and increased capital requirements, shifting the onus of risk management from banks to state and federal regulators. By separating investment banks from commercial banks, the Glass-Steagall Act left investment banks to manage their own leverage, a feature of financial regulation that, in part, depended on their partnership structur

The Carbon Storage Future of Public Lands

To meet the climate and energy goals set forth by the Biden Administration and the Paris Agreement, the United States must dramatically reduce carbon emissions. Use of public lands for carbon dioxide removal activities, including carbon capture, utilization, and storage (CCUS), has the potential to advance carbon reduction goals and concurrently provide economic revitalization opportunities to communities dependent on fossil industries. Current federal law presents numerous challenges and opportunities associated with utilization of federal pore space for CCUS. Although federal grant programs and tax incentives encourage deployment of CCUS technologies, legal and land-management issues related to public lands have received comparatively little legislative or agency attention. This essay seeks to bring attention to land-management aspects of geologic storage and to broaden conversations regarding CCUS technology deployment on federal lands. The authors identify opportunities for courts, agencies, and Congress to address uncertainties related to federal pore space and promote cooperation and coordination with state agencies

Arresting Banking Panics: Fed Liquidity Provision and the Forgotten Panic of 1929

Scholars differ on whether Federal Reserve intervention mitigated banking panics during the Great Depression and in recent years. The last panic prior to the Depression sheds light on this debate. In April 1929, a fruit fly infestation in Florida forced the U.S. government to quarantine fruit shipments from the state and destroy infested groves. When Congress recessed in June without approving compensation for farmers, depositors in citrus growing regions began withdrawing deposits from banks, culminating in runs on institutions in the financial center of Tampa and surrounding cities. Using archival evidence, we describe how the Federal Reserve Bank of Atlanta halted the spread of the panic by rushing currency to member banks. Analysis based on a new micro-level database of commercial banks in Florida shows that bank failures would have been twice as high without the Fed’s intervention. The policy response of the Fed ended the panic and suggests that similar interventions by the Fed may have been useful during the Great Depression, even in cases where banks faced questions about their solvency.

A genome-wide survey for SNPs altering microRNA seed sites identifies functional candidates in GWAS

<p>Abstract</p> <p>Background</p> <p>Gene variants within regulatory regions are thought to be major contributors of the variation of complex traits/diseases. Genome wide association studies (GWAS), have identified scores of genetic variants that appear to contribute to human disease risk. However, most of these variants do not appear to be functional. Thus, the significance of the association may be brought up by still unknown mechanisms or by linkage disequilibrium (LD) with functional polymorphisms. In the present study, focused on functional variants related with the binding of microRNAs (miR), we utilized SNP data, including newly released 1000 Genomes Project data to perform a genome-wide scan of SNPs that abrogate or create miR recognition element (MRE) seed sites (MRESS).</p> <p>Results</p> <p>We identified 2723 SNPs disrupting, and 22295 SNPs creating MRESSs. We estimated the percent of SNPs falling within both validated (5%) and predicted conserved MRESSs (3%). We determined 87 of these MRESS SNPs were listed in GWAS association studies, or in strong LD with a GWAS SNP, and may represent the functional variants of identified GWAS SNPs. Furthermore, 39 of these have evidence of co-expression of target mRNA and the predicted miR. We also gathered previously published eQTL data supporting a functional role for four of these SNPs shown to associate with disease phenotypes. Comparison of F_STstatistics (a measure of population subdivision) for predicted MRESS SNPs against non MRESS SNPs revealed a significantly higher (P = 0.0004) degree of subdivision among MRESS SNPs, suggesting a role for these SNPs in environmentally driven selection.</p> <p>Conclusions</p> <p>We have demonstrated the potential of publicly available resources to identify high priority candidate SNPs for functional studies and for disease risk prediction.</p

FlyRNAi: the Drosophila RNAi screening center database

RNA interference (RNAi) has become a powerful tool for genetic screening in Drosophila. At the Drosophila RNAi Screening Center (DRSC), we are using a library of over 21 000 double-stranded RNAs targeting known and predicted genes in Drosophila. This library is available for the use of visiting scientists wishing to perform full-genome RNAi screens. The data generated from these screens are collected in the DRSC database () in a flexible format for the convenience of the scientist and for archiving data. The long-term goal of this database is to provide annotations for as many of the uncharacterized genes in Drosophila as possible. Data from published screens are available to the public through a highly configurable interface that allows detailed examination of the data and provides access to a number of other databases and bioinformatics tools

Characterization of the near-Earth Asteroid 2002NY40

In August 2002, the near-Earth asteroid 2002 NY40, made its closest approach to the Earth. This provided an opportunity to study a near-Earth asteroid with a variety of instruments. Several of the telescopes at the Maui Space Surveillance System were trained at the asteroid and collected adaptive optics images, photometry and spectroscopy. Analysis of the imagery reveals the asteroid is triangular shaped with significant self-shadowing. The photometry reveals a 20-hour period and the spectroscopy shows that the asteroid is a Q-type

Genome-wide contribution of genotype by environment interaction to variation of diabetes-related traits

While genome-wide association studies (GWAS) and candidate gene approaches have identified many genetic variants that contribute to disease risk as main effects, the impact of genotype by environment (GxE) interactions remains rather under-surveyed. To explore the importance of GxE interactions for diabetes-related traits, a tool for Genome-wide Complex Trait Analysis (GCTA) was used to examine GxE variance contribution of 15 macronutrients and lifestyle to the total phenotypic variance of diabetes-related traits at the genome-wide level in a European American population. GCTA identified two key environmental factors making significant contributions to the GxE variance for diabetes-related traits: carbohydrate for fasting insulin (25.1% of total variance, P-nominal = 0.032) and homeostasis model assessment of insulin resistance (HOMA-IR) (24.2% of total variance, P-nominal = 0.035), n-6 polyunsaturated fatty acid (PUFA) for HOMA-β-cell-function (39.0% of total variance, P-nominal = 0.005). To demonstrate and support the results from GCTA, a GxE GWAS was conducted with each of the significant dietary factors and a control E factor (dietary protein), which contributed a non-significant GxE variance. We observed that GxE GWAS for the environmental factor contributing a significant GxE variance yielded more significant SNPs than the control factor. For each trait, we selected all significant SNPs produced from GxE GWAS, and conducted anew the GCTA to estimate the variance they contributed. We noted the variance contributed by these SNPs is higher than that of the control. In conclusion, we utilized a novel method that demonstrates the importance of genome-wide GxE interactions in explaining the variance of diabetes-related traits

Critical Differences and Clues in Eta Car's 2009 Event

We monitored Eta Carinae with HST WFPC2 and Gemini GMOS throughout the 2009 spectroscopic event, which was expected to differ from its predecessor in 2003 (Davidson et al. 2005). Here we report major observed differences between events, and their implications. Some of these results were quite unexpected. (1) The UV brightness minimum was much deeper in 2009. This suggests that physical conditions in the early stages of an event depend on different parameters than the "normal" inter-event wind. Extra mass ejection from the primary star is one possible cause. (2) The expected He II 4687 brightness maximum was followed several weeks later by another. We explain why this fact, and the timing of the 4687 maxima, strongly support a "shock breakup" hypothesis for X-ray and 4687 behavior as proposed 5-10 years ago. (3) We observed a polar view of the star via light reflected by dust in the Homunculus nebula. Surprisingly, at that location the variations of emission-line brightness and Doppler velocities closely resembled a direct view of the star; which should not have been true for any phenomena related to the orbit. This result casts very serious doubt on all the proposed velocity interpretations that depend on the secondary star's orbital motion. (4) Latitude-dependent variations of H I, He I and Fe II features reveal aspects of wind behavior during the event. In addition, we discuss implications of the observations for several crucial unsolved problems.Comment: 45 pages, 9 figures, submitted to Ap

Secular Changes in Eta Carinae's Wind 1998-2011

Stellar wind-emission features in the spectrum of eta Carinae have decreased by factors of 1.5-3 relative to the continuum within the last 10 years. We investigate a large data set from several instruments (STIS, GMOS, UVES) obtained between 1998 and 2011 and we analyze the progression of spectral changes in the direct view of the star, in the reflected polar-on spectra at FOS4, and at the Weigelt knots. We find that the spectral changes occurred gradually on a time scale of about 10 years and that they are dependent on the viewing angle. The line strengths declined most in our direct view of the star. About a decade ago, broad stellar wind-emission features were much stronger in our line-of-sight view of the star than at FOS4. After the 2009 event, the wind-emission line strengths are now very similar at both locations. High-excitation He I and N II absorption lines in direct view of the star strengthened gradually. The terminal velocity of Balmer P Cyg absorption lines now appears to be less latitude-dependent and the absorption strength may have weakened at FOS4. Latitude-dependent alterations in the mass-loss rate and the ionization structure of eta Carinae's wind are likely explanations for the observed spectral changes.Comment: 42 pages, 12 figures, 2 table