Race and Regulation Podcast Episode 9 - Board Diversity and Community Lending

The racial wealth gap in the U.S. is driven in part by a lack of access to credit among communities of color. But as Brian D. Feinstein of the Wharton School relays in this episode, new empirical research indicates that increasing the level of diversity on regional Federal Reserve Bank boards improves credit access for underbanked minority communities. He draws out the major implications of this research not only for narrowing the racial wealth gap, but for understanding the role that diversity in institutional leadership, including on corporate boards, can play in advancing racial equity more broadly

State Foreclosure Law: A Neglected Element of the Housing Finance Debate

Proponents of robust mortgage finance regulation would do well to look to the states, and specifically to the regulatory effects of state-mandated judicial foreclosure. Judicial foreclosure, which is authorized in almost half of U.S. states, requires that lenders seeking to foreclose on a mortgage file an action in state court. This not only provides borrowers with a forum for holding lenders accountable for their behavior and obligations, but puts the onus on the lender to show that the requirements for foreclosure have been met. It also aids borrowers by delaying the foreclosure process and allowing them to remain in their homes for longer periods while in default. In this brief, Professor Brian Feinstein empirically examines the effects of judicial foreclosure on lender behavior and mortgage costs for consumers. The findings indicate that judicial foreclosure alters lender behavior in ways that are beneficial to borrowers, and that mirror regulatory goals. Lenders exhibit greater caution in loan-approval decisions and offer fewer subprime loans. These results are amplified for lower-income borrowers. Importantly, the costs imposed on lenders by judicial foreclosure do not appear to get passed on to borrowers in the form of higher rates.https://repository.upenn.edu/pennwhartonppi/1062/thumbnail.jp

Congress in the Administrative State

In an era of increased concern over presidential power, congressional oversight of the executive branch constitutes a substantial—but underappreciated—means of influencing agency decision-making. Scholars too often have overlooked it, and Congress is sub-optimally designed for its provision, but oversight has a significant impact on agency behavior. This Article provides a corrective. It presents the legal mechanisms that give oversight hearings their force and situates these hearings in their historical and legal context. In light of this framework and historical practice, the Article posits that ex post oversight hearings facilitate political control over the administrative state. Because oversight gets its bite from an implicit threat of legislative sanctions should an agency not change its behavior following hearings, however, committees’ decisions whether to pursue oversight hinge on the credibility of this threat. To test this theory, the Article introduces an original dataset of over 14,000 agency “infractions,” i.e., agency actions that are potential subjects of hearings. Analysis of these data reveals, first, that oversight is most likely to occur when the particular preference alignment of Congress, the relevant committee, and the agency make the threat of new legislation credible. A second empirical analysis finds that, when oversight hearings do occur, they can get results; infractions that are subject to hearings are 18.5% less likely to recur compared to otherwise similar infractions that are not subject to hearings. These findings call into question the received wisdom regarding Congress’s role in governance. Whereas scholars focused on the political branches’ formal powers see Congress as a branch in decline, a more nuanced picture emerges when one also considers “soft powers,” like oversight. These findings offer a blueprint for greater congressional involvement in administration: to increase Congress’s role in governance, committee membership rosters should be representative of the larger legislature and committees with overlapping jurisdictions should be established. By redesigning its internal structure, Congress can promote more frequent oversight and, because oversight can be consequential, thereby strengthens Congress as a check on presidential administration

Strategic Subdelegation

Appointed leaders of administrative agencies routinely record subdelegations of governmental authority to civil servants. That appointees willingly cede authority in this way presents a puzzle, at least at first glance: Why do these appointees assign their power to civil servants insulated by merit protection laws, that is, to employees over whom they have limited control? This article develops and tests a theory to explain this behavior. Using original data on appointee-to-civil servant delegations and a measure of the ideological distance between these two groups of actors, we show that appointees are more willing to vest power in civil servants when the two groups are more closely aligned. They are particularly likely to do so in the last months of a presidential administration, prior to a transition to a new set of appointees from a different party. Essentially, appointees strategically devolve authority to ideologically similar civil servants to entrench their views in the face of oppositional future presidential administrations. Further, judicial doctrine and interest-group politics can make existing subdelegations difficult to reverse. This stickiness adds to the strategic value of subdelegations as a means of projecting preferences into future administrations. These findings raise important implications for administrative law and governance. One conventional wisdom on intra-agency dynamics considers appointees and civil servants as rivals. Relatedly, studies of personnel practices focus on strategies to empower appointees and sideline civil servants. This article, by contrast, shows how appointees and civil servants can act as strategic partners under certain conditions. At a time when leading political figures propose fundamental changes to the civil service, our findings call for a more nuanced understanding of the dynamics between political appointees and civil servants

Congress’s Commissioners: Former Hill Staffers at the S.E.C. and Other Independent Regulatory Commissions

The expression “personnel is policy” has become a truism in Washington. Yet our understanding of how the political branches use appointments to project influence into the administrative state is incomplete. This Article leverages data on almost one-thousand commissioners serving on eleven major independent regulatory commissions to chart, for the first time, Congress’s growing practice of placing former legislative-branch personnel onto these entities. We then theorize that this phenomenon is rooted in fundamental changes in American politics in recent decades— and, in turn, that it has deeply affected administrative law and separation of- powers dynamics. Over the past several decades, the number of commissioners with prior service as a lawmaker or congressional staffer increased almost fourfold. Paradoxically, this sea change occurred during a period in which, according to conventional wisdom, Congress’s influence over administration declined. We contend that, faced with a set of worsening pathologies in Congress, lawmakers turned to appointments to influence policy making. At the same time, congressional atrophy and an increasingly rocky confirmation process combined to make executive posts more attractive to Hill staffers than to others

Return to Play Following Shoulder Stabilization: A Systematic Review and Meta-analysis.

BackgroundAnterior shoulder instability can be a disabling condition for the young athlete; however, the best surgical treatment remains controversial. Traditionally, anterior shoulder instability was treated with open stabilization. More recently, arthroscopic repair of the Bankart injury with suture anchor fixation has become an accepted technique.HypothesisNo systematic reviews have compared the rate of return to play following arthroscopic Bankart repair with suture anchor fixation with the Bristow-Latarjet procedure and open stabilization. We hypothesized that the rate of return to play will be similar regardless of surgical technique.Study designSystematic review; Level of evidence, 4.MethodsWe performed a systematic review and meta-analysis focused on return to play following shoulder stabilization. Inclusion criteria included studies in English that reported on rate of return to play and clinical outcomes following primary arthroscopic Bankart repair with suture anchors, the Latarjet procedure, or open stabilization. Statistical analyses included Student t tests and analyses of variance.ResultsSixteen papers reporting on 1036 patients were included. A total of 545 patients underwent arthroscopic Bankart repair with suture anchors, 353 with the Latarjet procedure, and 138 with open repair. No significant difference was found in patient demographic data among the studies. Patients returned to sport at the same level of play (preinjury level) more consistently following arthroscopic Bankart repair (71%) or the Latarjet procedure (73%) than open stabilization (66%) (P < .05). Return to play at any level and postoperative Rowe scores were not significantly different among studies. Recurrent dislocation was significantly less following the Latarjet procedure (3.5%) than after arthroscopic Bankart repair (6.6%) or open stabilization (6.7%) (P < .05).ConclusionThis systematic review demonstrates a greater rate of return to play at the preinjury level following arthroscopic Bankart repair and the Latarjet procedure than open stabilization. Despite this difference, >65% of all treated athletes returned to sport at their preinjury levels, with other outcome measures being similar among the treatment groups. Therefore, arthroscopic Bankart repair, the Latarjet procedure, and open stabilization remain good surgical options in the treatment of the athlete with anterior shoulder instability

FUSE Measurements of Far Ultraviolet Extinction. I. Galactic Sight Lines

We present extinction curves that include data down to far ultraviolet wavelengths (FUV; 1050 - 1200 A) for nine Galactic sight lines. The FUV extinction was measured using data from the Far Ultraviolet Spectroscopic Explorer. The sight lines were chosen for their unusual extinction properties in the infrared through the ultraviolet; that they probe a wide range of dust environments is evidenced by the large spread in their measured ratios of total-to-selective extinction, R_V = 2.43 - 3.81. We find that extrapolation of the Fitzpatrick & Massa relationship from the ultraviolet appears to be a good predictor of the FUV extinction behavior. We find that predictions of the FUV extinction based upon the Cardelli, Clayton & Mathis (CCM) dependence on R_V give mixed results. For the seven extinction curves well represented by CCM in the infrared through ultraviolet, the FUV extinction is well predicted in three sight lines, over-predicted in two sight lines, and under-predicted in 2 sight lines. A Maximum Entropy Method analysis using a simple three component grain model shows that seven of the nine sight lines in the study require a larger fraction of grain materials to be in dust when FUV extinction is included in the models. Most of the added grain material is in the form of small (radii < 200 A) grains.Comment: Accepted for publication in the Astrophysical Journal. 31 pages with 7 figure

Candidate X-ray-Emitting OB Stars in the Carina Nebula Identified Via Infrared Spectral Energy Distributions

We report the results of a new survey of massive, OB stars throughout the Carina Nebula using the X-ray point source catalog provided by the Chandra Carina Complex Project (CCCP) in conjunction with infrared (IR) photometry from the Two Micron All-Sky Survey and the Spitzer Space Telescope Vela--Carina survey. Mid-IR photometry is relatively unaffected by extinction, hence it provides strong constraints on the luminosities of OB stars, assuming that their association with the Carina Nebula, and hence their distance, is confirmed. We fit model stellar atmospheres to the optical (UBV) and IR spectral energy distributions (SEDs) of 182 OB stars with known spectral types and measure the bolometric luminosity and extinction for each star. We find that the extinction law measured toward the OB stars has two components: Av=1--1.5 mag produced by foreground dust with a ratio of total-to-selective absorption Rv=3.1 plus a contribution from local dust with Rv>4.0 in the Carina molecular clouds that increases as Av increases. Using X-ray emission as a strong indicator of association with Carina, we identify 94 candidate OB stars with Lbol\geq10^4 Lsun by fitting their IR SEDs. If the candidate OB stars are eventually confirmed by follow-up spectroscopic observations, the number of cataloged OB stars in the Carina Nebula will increase by ~50%. Correcting for incompleteness due to OB stars falling below the Lbol cutoff or the CCCP detection limit, these results potentially double the size of the young massive stellar population.Comment: 19 pages, 8 figures, accepted for the ApJS Special Issue on the Chandra Carina Complex Project (CCCP), scheduled for publication in May 2011. All 16 CCCP Special Issue papers, including a version of this article with high-quality figures, are available at http://cochise.astro.psu.edu/Carina_public/special_issue.html (through 2011 at least