http://www.bis.org/cbhub/list/author/author_5329/index.rss Research hub papers by author Tara Rice en http://www.federalreserve.gov/pubs/ifdp/2012/1045/ifdp1045.pdf Board of Governors of the Federal Reserve System International Financial Discussion Papers by Tara Rice and Jonathan Rose When Good Investments Go Bad: The Contraction in Community Bank Lending After the 2008 GSE Takeover 2012-03-24T06:23:00Z In September 2008, the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac were placed into conservatorship and dividend payments on common and preferred shares were suspended. As a result, share prices fell to nearly zero and many banks across the country lost the value of their investments in the preferred shares. We estimate more than 600 depository institutions in the United States were exposed to at least $8 billion in investment losses from these securities. In addition, fifteen failures and two distressed mergers either directly or indirectly resulted from the takeover. Since these GSE investments were considered to be safe investments by banks, regulators, and rating agencies, we consider these losses to be exogenous shocks to bank capital, and use this event to examine the relationship between community bank condition and lending during this crisis. We find that in the quarter following the takeover of Fannie Mae and Freddie Mac, the measured Tier 1 capital ratio at exposed banks fell about three percent on average, and loan growth at exposed banks with median capitalization was about 2 percentage points lower compared to other banks in the following quarter. Consequently, considering the set of community banks that incurred about $2 billion in GSE-related losses, and assuming that each bank reduced loan growth by 2 percentage points, the estimated aggregate lending drop among these banks would be roughly $4 billion. When Good Investments Go Bad: The Contraction in Community Bank Lending After the 2008 GSE Takeover 2012-03-24T06:23:00Z Abstract http://www.federalreserve.gov/pubs/ifdp/2012/1045/default.htm Full text http://www.federalreserve.gov/pubs/ifdp/2012/1045/ifdp1045.pdf Tara Rice Jonathan Rose Tara Rice and Jonathan Rose 2012-03-23 Board of Governors of the Federal Reserve System International Financial Discussion Papers E61 G21 G28 http://www.federalreserve.gov/pubs/feds/2008/200854/200854pap.pdf Board of Governors of the Federal Reserve System FEDS series by Tara Rice and Philip E. Strahan Does Credit Supply Affect Small-Firm Finance? 2008-11-11T07:14:59Z States were granted authority to limit interstate branching following passage of Federal legislation in 1994, relaxing restrictions on geographical expansion by banks. We show that differences in state’s branching restrictions affect credit supply. In states more open to branching, small firms borrow at interest rates 25 to 45 basis points lower than firms operating in less open states. Firms in open states also are more likely to borrow from banks. Despite this evidence that interstate branch openness expands credit supply, we find no effect of variation in state restrictions on branching on small-firm borrowing or other indicators of credit constraints. Does Credit Supply Affect Small-Firm Finance? 2008-11-11T07:14:59Z Abstract http://www.federalreserve.gov/pubs/feds/2008/200854/200854abs.html Full text http://www.federalreserve.gov/pubs/feds/2008/200854/200854pap.pdf Philip E. Strahan Tara Rice Tara Rice and Philip E. Strahan 2008-11 Board of Governors of the Federal Reserve System FEDS series http://www.chicagofed.org/publications/workingpapers/wp2007_03.pdf Chicago Fed Working papers by Christian A. Johnson, Tara Rice Assessing a Decade of Interstate Bank Branching 2007-04-23T12:17:59Z Assessing a Decade of Interstate Bank Branching 2007-04-23T12:17:59Z Abstract http://www.chicagofed.org/economic_research_and_data/wp_abstract.cfm?pubsID=853 Full text http://www.chicagofed.org/publications/workingpapers/wp2007_03.pdf Christian A. Johnson Tara Rice Christian A. Johnson, Tara Rice 2007-04 Chicago Fed Working papers http://www.chicagofed.org/publications/workingpapers/wp2006_26.pdf Chicago Fed Working papers by Evren Örs, Tara Rice Bank Imputed Interest Rates: Unbiased Estimates of Offered Rates? 2007-01-01T12:00:00Z Bank Imputed Interest Rates: Unbiased Estimates of Offered Rates? 2007-01-01T12:00:00Z Abstract http://www.chicagofed.org/economic_research_and_data/wp_abstract.cfm?pubsID=832 Full text http://www.chicagofed.org/publications/workingpapers/wp2006_26.pdf Evren Örs Tara Rice Evren Örs, Tara Rice 2006-12 Chicago Fed Working papers G21 L11