Domesticating foreign finance

More than a decade after the 2008 financial crisis, U.S. policymakers still have not adequately addressed one of the primary causes of the crash: foreign banks. When foreign banks first entered the United States in the mid-twentieth century, they provided much-needed credit to U.S. borrowers. Over time, however, foreign banks shifted away from their traditional lending focus to a riskier, capital markets-oriented strategy. This business model—fueled by volatile short-term debt—created vulnerabilities for the U.S.

• Economics and finance
• International Policy
• Jeremy Kress