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160-587: As of December 31, 2020, there were 5,099 federally insured credit unions, with assets totaling more than $ 1.84 trillion, and net loans of $ 1.16 trillion. The NCUA exclusively insures credit unions, whereas commercial banks and savings institutions are insured by the Federal Deposit Insurance Corporation. The NCUA is governed by a three-member board appointed by the president of the United States and confirmed by

320-729: A perpetual union between the states in November 1777 and sent it to the states for ratification . Under the Articles, which took effect on March 1, 1781, the Congress of the Confederation was a central political authority without any legislative power. It could make its own resolutions, determinations, and regulations, but not any laws, and could not impose any taxes or enforce local commercial regulations upon its citizens. This institutional design reflected how Americans believed

480-1033: A president of the United States in Congress Assembled to preside over its deliberation as a neutral discussion moderator . Unrelated to and quite dissimilar from the later office of president of the United States, it was a largely ceremonial position without much influence. In 1783, the Treaty of Paris secured independence for each of the former colonies. With peace at hand, the states each turned toward their own internal affairs. By 1786, Americans found their continental borders besieged and weak and their respective economies in crises as neighboring states agitated trade rivalries with one another. They witnessed their hard currency pouring into foreign markets to pay for imports, their Mediterranean commerce preyed upon by North African pirates , and their foreign-financed Revolutionary War debts unpaid and accruing interest. Civil and political unrest loomed. Events such as

640-496: A " perfect storm " that triggered the Great Recession , which lasted from late 2007 to mid-2009. The financial crisis began in early 2007, as mortgage-backed securities (MBS) tied to U.S. real estate , as well as a vast web of derivatives linked to those MBS, collapsed in value . Financial institutions worldwide suffered severe damage, reaching a climax with the bankruptcy of Lehman Brothers on September 15, 2008, and

800-511: A "disruptive" erosion of his ability to govern. Ford failed to win election to a full term and his successor, Jimmy Carter , failed to win re-election. Ronald Reagan , who had been an actor before beginning his political career, used his talent as a communicator to help reshape the American agenda away from New Deal policies toward more conservative ideology. With the Cold War ending and

960-662: A country (such as the US) running a current account deficit also have a capital account (investment) surplus of the same amount. Hence large and growing amounts of foreign funds (capital) flowed into the U.S. to finance its imports. All of this created demand for various types of financial assets, raising the prices of those assets while lowering interest rates. Foreign investors had these funds to lend either because they had very high personal savings rates (as high as 40% in China) or because of high oil prices. Ben Bernanke referred to this as

1120-573: A delegate for Virginia. When the Constitutional Convention convened in May 1787, the 12 state delegations in attendance ( Rhode Island did not send delegates) brought with them an accumulated experience over a diverse set of institutional arrangements between legislative and executive branches from within their respective state governments. Most states maintained a weak executive without veto or appointment powers, elected annually by

1280-463: A dominant figure in American politics. Historians believe Roosevelt permanently changed the political system by strengthening the presidency, with some key accomplishments including breaking up trusts, conservationism, labor reforms, making personal character as important as the issues, and hand-picking his successor, William Howard Taft . The following decade, Woodrow Wilson led the nation to victory during World War I , although Wilson's proposal for

1440-450: A further collapse, encourage lending, restore faith in the integral commercial paper markets, avoid the risk of a deflationary spiral , and provide banks with enough funds to allow customers to make withdrawals. In effect, the central banks went from being the " lender of last resort " to the "lender of only resort" for a significant portion of the economy. In some cases the Fed was considered

1600-432: A global economic shock, resulting in several bank failures . Economies worldwide slowed during this period since credit tightened and international trade declined. Housing markets suffered and unemployment soared, resulting in evictions and foreclosures . Several businesses failed. From its peak in the second quarter of 2007 at $ 61.4 trillion, household wealth in the United States fell $ 11 trillion, to $ 50.4 trillion by

1760-545: A good deal of foreign and domestic policy without aid, interference or consent from Congress". Bill Wilson , board member of Americans for Limited Government , opined that the expanded presidency was "the greatest threat ever to individual freedom and democratic rule". Article I, Section   1 of the Constitution vests all lawmaking power in Congress's hands, and Article 1, Section 6, Clause   2 prevents

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1920-483: A housing bubble to replace the Nasdaq bubble". Moreover, empirical studies using data from advanced countries show that excessive credit growth contributed greatly to the severity of the crisis. Additional downward pressure on interest rates was created by rising U.S. current account deficit, which peaked along with the housing bubble in 2006. Federal Reserve chairman Ben Bernanke explained how trade deficits required

2080-466: A month after taking office. Presidents often grant pardons shortly before leaving office, like when Bill Clinton pardoned Patty Hearst on his last day in office; this is often controversial . Two doctrines concerning executive power have developed that enable the president to exercise executive power with a degree of autonomy. The first is executive privilege , which allows the president to withhold from disclosure any communications made directly to

2240-431: A presidential veto, it requires a two-thirds vote of both houses, which is usually very difficult to achieve except for widely supported bipartisan legislation. The framers of the Constitution feared that Congress would seek to increase its power and enable a "tyranny of the majority", so giving the indirectly elected president a veto was viewed as an important check on the legislative power. While George Washington believed

2400-821: A range of measures intended to preserve existing jobs and create new ones. Combined, the initiatives, coupled with actions taken in other countries, ended the worst of the Great Recession by mid-2009. Assessments of the crisis's impact in the U.S. vary, but suggest that some 8.7 million jobs were lost, causing unemployment to rise from 5 percent in 2007 to a high of 10 percent in October 2009. The percentage of citizens living in poverty rose from 12.5 percent in 2007 to 15.1 percent in 2010. The Dow Jones Industrial Average fell by 53 percent between October 2007 and March 2009, and some estimates suggest that one in four households lost 75 percent or more of their net worth . In 2010,

2560-545: A really bad economy. In other words, the borrowers did not cause the loans to go bad-it was the economy. Between 1998 and 2006, the price of the typical American house increased by 124%. During the 1980s and 1990s, the national median home price ranged from 2.9 to 3.1 times median household income. By contrast, this ratio increased to 4.0 in 2004, and 4.6 in 2006. This housing bubble resulted in many homeowners refinancing their homes at lower interest rates, or financing consumer spending by taking out second mortgages secured by

2720-504: A result of spikes in home foreclosures, business failures, and unemployment. To protect against the failure of more credit unions, the NCUA implemented a 12-month examination cycle for federally insured credit unions to detect problems in individual credit unions before they became insurmountable. NCUA also stepped up administrative actions wherever necessary to ensure prompt compliance. By year-end 2009, more than 96 percent of credit unions met

2880-438: A sexual harassment suit could proceed without delay, even against a sitting president. The 2019 Mueller report on Russian interference in the 2016 presidential election detailed evidence of possible obstruction of justice , but investigators declined to refer Donald Trump for prosecution based on a United States Department of Justice policy against indicting an incumbent president. The report noted that impeachment by Congress

3040-404: A significant increase in subprime lending . Subprime had not become less risky; Wall Street just accepted this higher risk. Due to competition between mortgage lenders for revenue and market share, and when the supply of creditworthy borrowers was limited, mortgage lenders relaxed underwriting standards and originated riskier mortgages to less creditworthy borrowers. In the view of some analysts,

3200-489: A single pool from which specific securities draw in a specific sequence of priority. Those securities first in line received investment-grade ratings from rating agencies. Securities with lower priority had lower credit ratings but theoretically a higher rate of return on the amount invested. By September 2008, average U.S. housing prices had declined by over 20% from their mid-2006 peak. As prices declined, borrowers with adjustable-rate mortgages could not refinance to avoid

3360-612: A sitting American president led troops in the field", though James Madison briefly took control of artillery units in defense of Washington, D.C. , during the War of 1812 . Abraham Lincoln was deeply involved in overall strategy and in day-to-day operations during the American Civil War , 1861–1865; historians have given Lincoln high praise for his strategic sense and his ability to select and encourage commanders such as Ulysses S. Grant . The present-day operational command of

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3520-404: A source of educational information and personal finance tips designed to help individuals make financial decisions. The website also explains how credit unions work, where to find one, and even how to start a credit union. President of the United States [REDACTED] [REDACTED] The president of the United States ( POTUS ) is the head of state and head of government of

3680-550: A state visit by a foreign head of state, the president typically hosts a State Arrival Ceremony held on the South Lawn , a custom begun by John F. Kennedy in 1961. This is followed by a state dinner given by the president which is held in the State Dining Room later in the evening. As a national leader, the president also fulfills many less formal ceremonial duties. For example, William Howard Taft started

3840-551: A subsequent international banking crisis . The prerequisites for the crisis were complex. During the 1990s, the U.S. Congress had passed legislation intended to expand affordable housing through looser financing. In 1999, parts of the Glass–Steagall legislation (passed in 1933) were repealed , permitting institutions to mix low-risk operations, such as commercial banking and insurance , with higher-risk operations such as investment banking and proprietary trading . As

4000-424: A third. In addition, nine vice presidents have become president by virtue of a president's intra-term death or resignation . In all, 45 individuals have served 46 presidencies spanning 58 four-year terms. Joe Biden is the 46th and current president, having assumed office on January 20, 2021. President-elect Donald Trump is scheduled to be inaugurated as the 47th president on January 20, 2025. During

4160-495: A three-member Board replaced the NCUA administrator. Congress added the finishing touches to this new administration with the addition of the Central Liquidity Facility , the lender of last resort for all credit unions. The decade of the 1970s saw substantial growth for existing credit unions, with membership doubling and assets tripling to over $ 65 billion. The high interest rates and unemployment in

4320-537: A whole. The NCUSIF also continued to thrive due to very few credit union failures. In 2008 and 2009, the global financial crisis exerted a strain on all institutions in the financial services sector – including credit unions. As a result, the Board charged NCUSIF premiums in 2009 and 2010. Ultimately, five of the largest wholesale corporate credit unions (Constitution Corporate, Members United Corporate, Western Corporate, Southwest Corporate, and U.S. Central Corporate) in

4480-561: Is administered through three regional offices, each responsible for specific states and territories. As part of the New Deal , President Franklin D. Roosevelt signed the Federal Credit Union Act into law in 1934. The law allowed the chartering of federal credit unions in all states. The federal law sought to make credit available and promote thrift through a national system of nonprofit, cooperative credit. At first,

4640-413: Is head of the executive branch of the federal government and is constitutionally obligated to "take care that the laws be faithfully executed". The executive branch has over four million employees, including the military. Presidents make political appointments . An incoming president may make up to 4,000 upon taking office, 1200 of which must be confirmed by the U.S. Senate . Ambassadors , members of

4800-706: Is likely to remain weak for a time, the Committee continues to anticipate that policy actions to stabilize financial markets and institutions, fiscal and monetary stimulus, and market forces will contribute to a gradual resumption of sustainable economic growth in a context of price stability. In the table, the names of emerging and developing economies are shown in boldface type, while the names of developed economies are in Roman (regular) type. The twenty largest economies contributing to global GDP (PPP) growth (2007–2017) The expansion of central bank lending in response to

4960-571: Is to be commander-in-chief of the army and navy of the United States.   ... It would amount to nothing more than the supreme command and direction of the military and naval forces   ... while that [the power] of the British king extends to the DECLARING of war and to the RAISING and REGULATING of fleets and armies, all [of] which   ... would appertain to the legislature. [Emphasis in

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5120-852: The American Revolutionary War , the Thirteen Colonies , represented by the Second Continental Congress in Philadelphia , declared themselves to be independent sovereign states and no longer under British rule. The affirmation was made in the Declaration of Independence , which was written predominantly by Thomas Jefferson and adopted unanimously on July 4, 1776, by the Second Continental Congress. Recognizing

5280-657: The Boy Scouts of America . Financial crisis of 2007%E2%80%932008 The 2007–2008 financial crisis , or the global financial crisis ( GFC ), was the most severe worldwide economic crisis since the 1929 Wall Street crash that began the Great Depression . Causes of the crisis included predatory lending in the form of subprime mortgages to low-income homebuyers and a resulting housing bubble , excessive risk-taking by global financial institutions , and lack of regulatory oversight, which culminated in

5440-687: The Bureau of Federal Credit Unions to form the modern independent federal agency that presently regulates the industry. In 1970, the renaming to National Credit Union Administration was made possible in part by the creation of the National Credit Union Share Insurance Fund (NCUSIF) to insure credit union deposits. The NCUSIF was created without any tax dollars, capitalized solely by credit unions. By 1977, services available to credit union members expanded, including share certificates and mortgage lending . In 1979,

5600-535: The Cabinet , and various officers , are among the positions filled by presidential appointment with Senate confirmation. The power of a president to fire executive officials has long been a contentious political issue. Generally, a president may remove executive officials at will. However, Congress can curtail and constrain a president's authority to fire commissioners of independent regulatory agencies and certain inferior executive officers by statute . To manage

5760-595: The Credit Union Membership Access Act , opened up membership eligibility to include much larger and loosely defined groups. During the 1990s and into the 21st century, credit unions grew steadily in assets, shares and members. Failures remained generally low, and the Share Insurance Fund maintained a healthy equity level. During the 1990s and into the beginning of the 21st century, U.S. credit unions continued to develop as

5920-582: The Dodd–Frank Wall Street Reform and Consumer Protection Act was passed, overhauling financial regulations. It was opposed by many Republicans , and it was weakened by the Economic Growth, Regulatory Relief, and Consumer Protection Act in 2018. The Basel III capital and liquidity standards were also adopted by countries around the world. The recession was a significant factor in the 2010s European debt crisis . The crisis sparked

6080-654: The Federal Reserve ("Fed") lowered the federal funds rate from 2000 to 2003, institutions increasingly targeted low-income homebuyers, largely belonging to racial minorities , with high-risk loans; this development went unattended by regulators. As interest rates rose from 2004 to 2006, the cost of mortgages rose and the demand for housing fell, causing property values to decline. In early 2007, as more U.S. mortgage holders began defaulting on their repayments, subprime lenders went bankrupt, culminating in April with

6240-474: The Federal Reserve lowered the federal funds rate target from 6.5% to 1.0%. This was done to soften the effects of the collapse of the dot-com bubble and the September 11 attacks , as well as to combat a perceived risk of deflation . As early as 2002, it was apparent that credit was fueling housing instead of business investment as some economists went so far as to advocate that the Fed "needs to create

6400-550: The Great Depression . This matters for credit decisions. A homeowner with equity in her home is very unlikely to default on a car loan or credit card debt. They will draw on this equity rather than lose their car and/or have a default placed on their credit record. On the other hand, a homeowner who has no equity is a serious default risk. In the case of businesses, their creditworthiness depends on their future profits. Profit prospects look much worse in November 2008 than they did in November 2007 ... While many banks are obviously at

6560-689: The Great Recession , which, at the time, was the most severe global recession since the Great Depression. It was also followed by the European debt crisis, which began with a deficit in Greece in late 2009, and the 2008–2011 Icelandic financial crisis , which involved the bank failure of all three of the major banks in Iceland and, relative to the size of its economy, was the largest economic collapse suffered by any country in history. It

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6720-697: The League of Nations was rejected by the Senate. Warren Harding , while popular in office, would see his legacy tarnished by scandals, especially Teapot Dome , and Herbert Hoover quickly became very unpopular after failing to alleviate the Great Depression . The ascendancy of Franklin D. Roosevelt in 1933 led further toward what historians now describe as the Imperial presidency . Backed by enormous Democratic majorities in Congress and public support for major change, Roosevelt's New Deal dramatically increased

6880-660: The Newburgh Conspiracy and Shays' Rebellion demonstrated that the Articles of Confederation were not working. Following the successful resolution of commercial and fishing disputes between Virginia and Maryland at the Mount Vernon Conference in 1785, Virginia called for a trade conference between all the states, set for September 1786 in Annapolis, Maryland , with an aim toward resolving further-reaching interstate commercial antagonisms. When

7040-509: The Senate . The president also chooses who will serve as Chairman. No more than two members may be members of the same political party. Board members serve six-year terms, and cannot be reappointed to succeed themselves, unless initially appointed to fill the remainder of an unexpired term. Board members may, however, continue to serve until their successor is confirmed and takes office. The current board members as of September 24, 2024: The NCUA

7200-559: The Supreme Court of the United States . However, these nominations require Senate confirmation before they may take office. Securing Senate approval can provide a major obstacle for presidents who wish to orient the federal judiciary toward a particular ideological stance. When nominating judges to U.S. district courts , presidents often respect the long-standing tradition of senatorial courtesy . Presidents may also grant pardons and reprieves . Gerald Ford pardoned Richard Nixon

7360-588: The U.S. Constitution emerged. As the nation's first president, George Washington established many norms that would come to define the office. His decision to retire after two terms helped address fears that the nation would devolve into monarchy, and established a precedent that would not be broken until 1940 and would eventually be made permanent by the Twenty-Second Amendment . By the end of his presidency, political parties had developed, with John Adams defeating Thomas Jefferson in 1796,

7520-561: The United States House Committee on Financial Services held a hearing, at the urging of the administration, to assess safety and soundness issues and to review a recent report by the Office of Federal Housing Enterprise Oversight (OFHEO) that had uncovered accounting discrepancies within the two entities. The hearings never resulted in new legislation or formal investigation of Fannie Mae and Freddie Mac, as many of

7680-588: The United States of America . The president directs the executive branch of the federal government and is the commander-in-chief of the United States Armed Forces . The power of the presidency has grown substantially since the first president, George Washington , took office in 1789. While presidential power has ebbed and flowed over time, the presidency has played an increasingly significant role in American political life since

7840-610: The Watergate scandal , Congress enacted a series of reforms intended to reassert itself. These included the War Powers Resolution , enacted over Nixon's veto in 1973, and the Congressional Budget and Impoundment Control Act of 1974 that sought to strengthen congressional fiscal powers. By 1976, Gerald Ford conceded that "the historic pendulum" had swung toward Congress, raising the possibility of

8000-636: The Watergate scandal , the Supreme Court ruled in United States v. Nixon , 418 U.S. 683 (1974), that executive privilege did not apply in cases where a president was attempting to avoid criminal prosecution. When Bill Clinton attempted to use executive privilege regarding the Lewinsky scandal , the Supreme Court ruled in Clinton v. Jones , 520 U.S. 681 (1997), that

8160-490: The convention failed for lack of attendance due to suspicions among most of the other states, Alexander Hamilton of New York led the Annapolis delegates in a call for a convention to offer revisions to the Articles, to be held the next spring in Philadelphia . Prospects for the next convention appeared bleak until James Madison and Edmund Randolph succeeded in securing George Washington 's attendance to Philadelphia as

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8320-501: The mortgage-backed security and the collateralized debt obligation that were assigned safe ratings by the credit rating agencies . In effect, Wall Street connected this pool of money to the mortgage market in the US, with enormous fees accruing to those throughout the mortgage supply chain , from the mortgage broker selling the loans to small banks that funded the brokers and the large investment banks behind them. By approximately 2003,

8480-519: The wealth gap , and proactively considering future challenges like climate change to mitigate risks posed by rising seas, climbing temperatures, and devastating wildfires. The National Credit Union Share Insurance Fund (NCUSIF) is the federal fund created by the United States Congress in 1970 to insure members' deposits in federally insured credit unions. On July 22, 2010, the Dodd–Frank Wall Street Reform and Consumer Protection Act

8640-403: The "buyer of last resort". During the fourth quarter of 2008, these central banks purchased US$ 2.5 (~$ 3.47 trillion in 2023) trillion of government debt and troubled private assets from banks. This was the largest liquidity injection into the credit market, and the largest monetary policy action in world history. Following a model initiated by the 2008 United Kingdom bank rescue package ,

8800-585: The 1830s and 1840s until debates over slavery began pulling the nation apart in the 1850s. Abraham Lincoln 's leadership during the Civil War has led historians to regard him as one of the nation's greatest presidents. The circumstances of the war and Republican domination of Congress made the office very powerful, and Lincoln's re-election in 1864 was the first time a president had been re-elected since Jackson in 1832. After Lincoln's assassination, his successor Andrew Johnson lost all political support and

8960-764: The 2008 financial crisis, consumer regulators in America have more closely supervised sellers of credit cards and home mortgages in order to deter anticompetitive practices that led to the crisis. At least two major reports on the causes of the crisis were produced by the U.S. Congress: the Financial Crisis Inquiry Commission report, released January 2011, and a report by the United States Senate Homeland Security Permanent Subcommittee on Investigations entitled Wall Street and

9120-524: The 20th century, especially during the Cold War , the U.S. president was often called "the leader of the free world". Article II of the Constitution establishes the executive branch of the federal government and vests executive power in the president. The power includes the execution and enforcement of federal law and the responsibility to appoint federal executive, diplomatic, regulatory, and judicial officers. Based on constitutional provisions empowering

9280-666: The Armed Forces is delegated to the Department of Defense and is normally exercised through the secretary of defense . The chairman of the Joint Chiefs of Staff and the Combatant Commands assist with the operation as outlined in the presidentially approved Unified Command Plan (UCP). The president has the power to nominate federal judges , including members of the United States courts of appeals and

9440-414: The Board charged credit unions a premium to insure deposits. The enhancement of member services in the 1980s accompanied deregulation and increased flexibility in merger and field of membership criteria. Previously, membership in credit unions was generally limited to select groups with a pre-existing common bond , often employees of a particular company or trade. Changes since 1998 as a result of H.R. 1151,

9600-590: The COVID-19 pandemic posed unique economic and financial challenges to rural and underserved communities, the NCUA committed the majority of its 2020 Community Development Revolving Loan Fund allocation to COVID-19 assistance. In 2021 and beyond, the NCUA's goals include advancing economic equity and justice within the credit union movement and build on the agency's ACCESS program. Plans call for enhancing support for minority depository institutions, ensuring compliance with fair lending laws, advancing initiatives to close

9760-529: The CRA. They contend that there were two, connected causes to the crisis: the relaxation of underwriting standards in 1995 and the ultra-low interest rates initiated by the Federal Reserve after the terrorist attack on September 11, 2001. Both causes had to be in place before the crisis could take place. Critics also point out that publicly announced CRA loan commitments were massive, totaling $ 4.5 trillion in

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9920-477: The Constitution grants to the president as commander-in-chief has been the subject of much debate throughout history, with Congress at various times granting the president wide authority and at others attempting to restrict that authority. The framers of the Constitution took care to limit the president's powers regarding the military; Alexander Hamilton explained this in Federalist No. 69 : The President

10080-491: The Financial Crisis: Anatomy of a Financial Collapse , released April 2011. In total, 47 bankers served jail time as a result of the crisis, over half of which were from Iceland , where the crisis was the most severe and led to the collapse of all three major Icelandic banks. In April 2012, Geir Haarde of Iceland became the only politician to be convicted as a result of the crisis. Only one banker in

10240-486: The LMI borrowers targeted by the CRA, especially in the years 2005–2006 leading up to the crisis, nor did it find any evidence that lending under the CRA rules increased delinquency rates or that the CRA indirectly influenced independent mortgage lenders to ramp up sub-prime lending. To other analysts the delay between CRA rule changes in 1995 and the explosion of subprime lending is not surprising, and does not exonerate

10400-542: The NCUA worked to bolster the Central Liquidity Facility and enhance its ability to serve as a liquidity backstop for the system during 2020. Following the regulatory enhancements provided by the Coronavirus Aid, Relief, and Economic Security (CARES) Act and changes to the agency's regulations by the NCUA Board, the facility experienced a significant increase in its membership and borrowing capacity. Because

10560-541: The NCUA's 2016 field-of-membership rule. On March 10, 2020, the NCUA celebrated its 50th anniversary. On March 16, 2020, in response to the global coronavirus pandemic, the NCUA issued a Letter to Credit Unions that outlines several strategies credit unions may consider when determining how to address the challenges associated with COVID-19. Throughout the pandemic, the NCUA provided targeted regulatory flexibility, where appropriate, so federally insured credit unions could manage their operational and financial risks . Notably,

10720-600: The SEC's December 2011 securities fraud case against six former executives of Fannie and Freddie, Peter Wallison and Edward Pinto estimated that, in 2008, Fannie and Freddie held 13 million substandard loans totaling over $ 2 trillion. In the early and mid-2000s, the Bush administration called numerous times for investigations into the safety and soundness of the GSEs and their swelling portfolio of subprime mortgages. On September 10, 2003,

10880-418: The Supreme Court dismissed a case brought by a former Union spy. However, the privilege was not formally recognized by the U.S. Supreme Court until United States v. Reynolds 345 U.S. 1 (1953), where it was held to be a common law evidentiary privilege. Before the September 11 attacks , use of the privilege had been rare, but increasing in frequency. Since 2001, the government has asserted

11040-498: The U.S. to borrow money from abroad, in the process bidding up bond prices and lowering interest rates. Bernanke explained that between 1996 and 2004, the U.S. current account deficit increased by $ 650 billion, from 1.5% to 5.8% of GDP. Financing these deficits required the country to borrow large sums from abroad, much of it from countries running trade surpluses. These were mainly the emerging economies in Asia and oil-exporting nations. The balance of payments identity requires that

11200-483: The United States and other countries. Such agreements, upon receiving the advice and consent of the U.S. Senate (by a two-thirds majority vote), become binding with the force of federal law. While foreign affairs has always been a significant element of presidential responsibilities, advances in technology since the Constitution's adoption have increased presidential power. Where formerly ambassadors were vested with significant power to independently negotiate on behalf of

11360-578: The United States becoming the world's undisputed leading power, Bill Clinton , George W. Bush , and Barack Obama each served two terms as president. Meanwhile, Congress and the nation gradually became more politically polarized, especially following the 1994 mid-term elections that saw Republicans control the House for the first time in 40 years, and the rise of routine filibusters in the Senate in recent decades. Recent presidents have thus increasingly focused on executive orders , agency regulations, and judicial appointments to implement major policies, at

11520-409: The United States did not have wealth declines at all during the crisis because they generally did not own financial investments whose value can fluctuate. The Federal Reserve surveyed 4,000 households between 2007 and 2009, and found that the total wealth of 63% of all Americans declined in that period and 77% of the richest families had a decrease in total wealth, while only 50% of those on the bottom of

11680-487: The United States served jail time as a result of the crisis, Kareem Serageldin , a banker at Credit Suisse who was sentenced to 30 months in jail and returned $ 24.6 million in compensation for manipulating bond prices to hide $ 1 billion of losses. No individuals in the United Kingdom were convicted as a result of the crisis. Goldman Sachs paid $ 550 million to settle fraud charges after allegedly anticipating

11840-405: The United States were rendered insolvent after investing in troubled mortgage-backed securities that became overwhelmed with unprecedented declines in value. In response to the growing corporate credit union crisis, the NCUA took the following actions: In addition to the corporate credit union crisis, the NCUA dealt with the failure of a number of consumer-owned credit unions, which weakened as

12000-423: The United States, presidents now routinely meet directly with leaders of foreign countries. One of the most important of executive powers is the president's role as commander-in-chief of the United States Armed Forces . The power to declare war is constitutionally vested in Congress, but the president has ultimate responsibility for the direction and disposition of the military. The exact degree of authority that

12160-538: The White House". Presidents have been criticized for making signing statements when signing congressional legislation about how they understand a bill or plan to execute it. This practice has been criticized by the American Bar Association as unconstitutional. Conservative commentator George Will wrote of an "increasingly swollen executive branch" and "the eclipse of Congress". To allow

12320-559: The bailout to Fannie Mae and Freddie Mac exceeds $ 300 billion (c. $ 401 billion in 2023 ) (calculated by adding the fair value deficits of the entities to the direct bailout funds at the time). Economist Paul Krugman argued in January 2010 that the simultaneous growth of the residential and commercial real estate pricing bubbles and the global nature of the crisis undermines the case made by those who argue that Fannie Mae, Freddie Mac, CRA, or predatory lending were primary causes of

12480-535: The bailouts, such as in the case of the AIG bonus payments controversy , leading to the development of a variety of "decision making frameworks", to help balance competing policy interests during times of financial crisis. Alistair Darling , the U.K.'s Chancellor of the Exchequer at the time of the crisis, stated in 2018 that Britain came within hours of "a breakdown of law and order" the day that Royal Bank of Scotland

12640-557: The bankruptcy of New Century Financial . As demand and prices continued to fall, the contagion spread to worldwide credit markets by August, and central banks began injecting liquidity . By July 2008, Fannie Mae and Freddie Mac , companies which together owned or guaranteed half of the U.S. housing market, were on the verge of collapse; the Housing and Economic Recovery Act enabled the government to take over and cover their combined $ 1.6 trillion debt on September 7. In response to

12800-488: The beginning of the 20th century, carrying over into the 21st century with notable expansions during the presidencies of Franklin D. Roosevelt and George W. Bush . In modern times, the president is one of the world's most powerful political figures and the leader of the world's only remaining superpower . As the leader of the nation with the largest economy by nominal GDP , the president possesses significant domestic and international hard and soft power . For much of

12960-726: The brink, consumers and businesses would be facing a much harder time getting credit right now even if the financial system were rock solid. The problem with the economy is the loss of close to $ 6 trillion in housing wealth and an even larger amount of stock wealth. ... the pace of economic contraction is slowing. Conditions in financial markets have generally improved in recent months. Household spending has shown further signs of stabilizing but remains constrained by ongoing job losses, lower housing wealth, and tight credit. Businesses are cutting back on fixed investment and staffing but appear to be making progress in bringing inventory stocks into better alignment with sales. Although economic activity

13120-696: The bubble burst, Australian economist John Quiggin wrote, "And, unlike the Great Depression, this crisis was entirely the product of financial markets. There was nothing like the postwar turmoil of the 1920s, the struggles over gold convertibility and reparations, or the Smoot-Hawley tariff , all of which have shared the blame for the Great Depression." Instead, Quiggin lays the blame for the 2008 near-meltdown on financial markets, on political decisions to lightly regulate them, and on rating agencies which had self-interested incentives to give good ratings. Lower interest rates encouraged borrowing. From 2000 to 2003,

13280-501: The committee members refused to accept the report and instead rebuked OFHEO for their attempt at regulation. Some, such as Wallison, believe this was an early warning to the systemic risk that the growing market in subprime mortgages posed to the U.S. financial system that went unheeded. A 2000 United States Department of the Treasury study of lending trends for 305 cities from 1993 to 1998 showed that $ 467 billion of mortgage lending

13440-403: The crisis and selling toxic investments to its clients. With fewer resources to risk in creative destruction, the number of patent applications was flat, compared to exponential increases in patent application in prior years. Typical American families did not fare well, nor did the "wealthy-but-not-wealthiest" families just beneath the pyramid's top. However, half of the poorest families in

13600-446: The crisis in commercial real estate and related lending took place after the crisis in residential real estate. Business journalist Kimberly Amadeo reported: "The first signs of decline in residential real estate occurred in 2006. Three years later, commercial real estate started feeling the effects." Denice A. Gierach, a real estate attorney and CPA, wrote: ... most of the commercial real estate loans were good loans destroyed by

13760-437: The crisis was not only confined to the Federal Reserve 's provision of aid to individual financial institutions. The Federal Reserve has also conducted a number of innovative lending programs with the goal of improving liquidity and strengthening different financial institutions and markets, such as Freddie Mac and Fannie Mae . In this case, the major problem among the market is the lack of free cash reserves and flows to secure

13920-526: The crisis. As part of national fiscal policy response to the Great Recession , governments and central banks, including the Federal Reserve , the European Central Bank and the Bank of England , provided then-unprecedented trillions of dollars in bailouts and stimulus , including expansive fiscal policy and monetary policy to offset the decline in consumption and lending capacity, avoid

14080-509: The crisis. In other words, bubbles in both markets developed even though only the residential market was affected by these potential causes. Countering Krugman, Wallison wrote: "It is not true that every bubble—even a large bubble—has the potential to cause a financial crisis when it deflates." Wallison notes that other developed countries had "large bubbles during the 1997–2007 period" but "the losses associated with mortgage delinquencies and defaults when these bubbles deflated were far lower than

14240-552: The death of William Henry Harrison and subsequent poor relations between John Tyler and Congress led to further weakening of the office. Including Van Buren, in the 24 years between 1837 and 1861, six presidential terms would be filled by eight different men, with none serving two terms. The Senate played an important role during this period, with the Great Triumvirate of Henry Clay , Daniel Webster , and John C. Calhoun playing key roles in shaping national policy in

14400-457: The deposed British system of Crown and Parliament ought to have functioned with respect to the royal dominion : a superintending body for matters that concerned the entire empire. The states were out from under any monarchy and assigned some formerly royal prerogatives (e.g., making war, receiving ambassadors, etc.) to Congress; the remaining prerogatives were lodged within their own respective state governments. The members of Congress elected

14560-532: The early 1980s brought insurance losses. The NCUSIF experienced strain, and credit unions lobbied Congress to recapitalize the Fund. In 1985, the plan became law, and federally insured credit unions recapitalized the NCUSIF by depositing 1 percent of their shares into the NCUSIF. The fully capitalized National Credit Union Share Insurance Fund has "fail safe" features. In 1991, when equity level dipped below 1.23 percent,

14720-414: The end of the first quarter of 2009, resulting in a decline in consumption, then a decline in business investment. In the fourth quarter of 2008, the quarter-over-quarter decline in real GDP in the U.S. was 8.4%. The U.S. unemployment rate peaked at 11.0% in October 2009, the highest rate since 1983 and roughly twice the pre-crisis rate. The average hours per work week declined to 33, the lowest level since

14880-608: The end product." Essentially, investment banks and hedge funds used financial innovation to enable large wagers to be made, far beyond the actual value of the underlying mortgage loans, using derivatives called credit default swaps, collateralized debt obligations and synthetic CDOs . By March 2011, the FDIC had paid out $ 9 billion (c. $ 12 billion in 2023 ) to cover losses on bad loans at 165 failed financial institutions. The Congressional Budget Office estimated, in June 2011, that

15040-461: The executive branch may draft legislation and then ask senators or representatives to introduce these drafts into Congress. Additionally, the president may attempt to have Congress alter proposed legislation by threatening to veto that legislation unless requested changes are made. Many laws enacted by Congress do not address every possible detail, and either explicitly or implicitly delegate powers of implementation to an appropriate federal agency. As

15200-475: The expense of legislation and congressional power. Presidential elections in the 21st century have reflected this continuing polarization, with no candidate except Obama in 2008 winning by more than five percent of the popular vote and two, George W. Bush and Donald Trump , winning in the Electoral College while losing the popular vote. The nation's Founding Fathers expected the Congress , which

15360-473: The federal funds rate to drop below where it was supposed to be. However, in October 2008, the Federal Reserve was granted the power to provide banks with interest payments on their surplus reserves. This created a motivation for banks to retain their reserves instead of disbursing them, so reducing the need for the Federal Reserve to hedge its increased lending by decreases in alternative assets. Money market funds also went through runs when people lost faith in

15520-504: The federal government by issuing various types of directives , such as presidential proclamation and executive orders . When the president is lawfully exercising one of the constitutionally conferred presidential responsibilities, the scope of this power is broad. Even so, these directives are subject to judicial review by U.S. federal courts, which can find them to be unconstitutional. Congress can overturn an executive order through legislation. Article II, Section 3, Clause 4 requires

15680-426: The financial system and got banks to start lending again, both to each other and to people. Many homeowners who were trying to keep their homes from going into default got housing credits. A package of policies was passed that let borrowers refinance their loans even though the value of their homes was less than what they still owed on their mortgages . While the causes of the bubble and subsequent crash are disputed,

15840-539: The first U.S. president, firmly established military subordination under civilian authority . In 1794, Washington used his constitutional powers to assemble 12,000 militia to quell the Whiskey Rebellion , a conflict in Western Pennsylvania involving armed farmers and distillers who refused to pay an excise tax on spirits. According to historian Joseph Ellis , this was the "first and only time

16000-536: The first truly contested presidential election. After Jefferson defeated Adams in 1800, he and his fellow Virginians James Madison and James Monroe would each serve two terms, eventually dominating the nation's politics during the Era of Good Feelings until Adams' son John Quincy Adams won election in 1824 after the Democratic-Republican Party split. The election of Andrew Jackson in 1828

16160-457: The government began collecting the data in 1964. The economic crisis started in the U.S. but spread to the rest of the world. U.S. consumption accounted for more than a third of the growth in global consumption between 2000 and 2007 and the rest of the world depended on the U.S. consumer as a source of demand. Toxic securities were owned by corporate and institutional investors globally. Derivatives such as credit default swaps also increased

16320-609: The government seized Washington Mutual (the largest savings and loan firm ). On October 3, Congress passed the $ 800 billion Emergency Economic Stabilization Act , which authorized the Treasury Department to purchase troubled assets and bank stocks. The Fed began a program of quantitative easing by buying treasury bonds and other assets, such as MBS, and the February 2009 American Recovery and Reinvestment Act , signed by newly elected President Barack Obama , included

16480-417: The government to act quickly in case of a major domestic or international crisis arising when Congress is not in session, the president is empowered by Article II, Section   3 of the Constitution to call a special session of one or both houses of Congress. Since John Adams first did so in 1797, the president has called the full Congress to convene for a special session on 27 occasions. Harry S. Truman

16640-506: The governments of European nations and the United States guaranteed the debt issued by their banks and raised the capital of their national banking systems, ultimately purchasing $ 1.5 trillion newly issued preferred stock in major banks. The Federal Reserve created then-significant amounts of new currency as a method to combat the liquidity trap . Bailouts came in the form of trillions of dollars of loans, asset purchases, guarantees, and direct spending. Significant controversy accompanied

16800-513: The growing crisis, governments around the world deployed massive bail-outs of financial institutions and other monetary and fiscal policies to prevent a collapse of the global financial system . After the bankruptcy of Lehman Brothers , the fourth largest U.S. investment bank, on September 15, the next day the Fed bailed out the American International Group (the largest U.S. insurance company), and on September 25

16960-661: The growing federal bureaucracy, presidents have gradually surrounded themselves with many layers of staff, who were eventually organized into the Executive Office of the President of the United States . Within the Executive Office, the president's innermost layer of aides, and their assistants, are located in the White House Office . The president also possesses the power to manage operations of

17120-474: The head of the executive branch, presidents control a vast array of agencies that can issue regulations with little oversight from Congress. In the 20th century, critics charged that too many legislative and budgetary powers that should have belonged to Congress had slid into the hands of presidents. One critic charged that presidents could appoint a "virtual army of 'czars'—each wholly unaccountable to Congress yet tasked with spearheading major policy efforts for

17280-421: The higher payments associated with rising interest rates and began to default. During 2007, lenders began foreclosure proceedings on nearly 1.3 million properties, a 79% increase over 2006. This increased to 2.3 million in 2008, an 81% increase vs. 2007. By August 2008, approximately 9% of all U.S. mortgages outstanding were either delinquent or in foreclosure. By September 2009, this had risen to 14.4%. After

17440-422: The legislature to a single term only, sharing power with an executive council, and countered by a strong legislature. New York offered the greatest exception, having a strong, unitary governor with veto and appointment power elected to a three-year term, and eligible for reelection to an indefinite number of terms thereafter. It was through the closed-door negotiations at Philadelphia that the presidency framed in

17600-578: The linkage between large financial institutions. The de-leveraging of financial institutions, as assets were sold to pay back obligations that could not be refinanced in frozen credit markets, further accelerated the solvency crisis and caused a decrease in international trade. Reductions in the growth rates of developing countries were due to falls in trade, commodity prices, investment and remittances sent from migrant workers (example: Armenia ). States with fragile political systems feared that investors from Western states would withdraw their money because of

17760-505: The loans. The Federal Reserve took a number of steps to deal with worries about liquidity in the financial markets. One of these steps was a credit line for major traders, who act as the Fed's partners in open market activities. Also, loan programs were set up to make the money market mutual funds and commercial paper market more flexible. Also, the Term Asset-Backed Securities Loan Facility (TALF)

17920-428: The losses suffered in the United States when the 1997–2007 [bubble] deflated." According to Wallison, the reason the U.S. residential housing bubble (as opposed to other types of bubbles) led to financial crisis was that it was supported by a huge number of substandard loans—generally with low or no downpayments. Krugman's contention (that the growth of a commercial real estate bubble indicates that U.S. housing policy

18080-650: The majority report of the Financial Crisis Inquiry Commission, conservative American Enterprise Institute fellow Peter J. Wallison stated his belief that the roots of the financial crisis can be traced directly and primarily to affordable housing policies initiated by the United States Department of Housing and Urban Development (HUD) in the 1990s and to massive risky loan purchases by government-sponsored entities Fannie Mae and Freddie Mac. Based upon information in

18240-599: The market. To keep it from getting worse, the Fed said it would give money to mutual fund companies. Also, Department of Treasury said that it would briefly cover the assets of the fund. Both of these things helped get the fund market back to normal, which helped the commercial paper market, which most businesses use to run. The FDIC also did a number of things, like raise the insurance cap from $ 100,000 to $ 250,000, to boost customer trust. They engaged in Quantitative Easing , which added more than $ 4 trillion to

18400-539: The necessity of closely coordinating their efforts against the British , the Continental Congress simultaneously began the process of drafting a constitution that would bind the states together. There were long debates on a number of issues, including representation and voting, and the exact powers to be given the central government. Congress finished work on the Articles of Confederation to establish

18560-777: The newly created Bureau of Federal Credit Unions was housed at the Farm Credit Administration . Regulatory responsibility shifted over the years as the bureau migrated from the Federal Deposit Insurance Corporation to the Federal Security Agency , then to the Department of Health, Education, and Welfare . In the 1940s and 1950s, credit unions grew steadily, reaching a membership of more than six million people at over 10,000 federal credit unions by 1960. The growth in credit unions resulted in an overhauling of

18720-512: The office as a position of global leadership. His successors, Harry Truman and Dwight D. Eisenhower , each served two terms as the Cold War led the presidency to be viewed as the " leader of the free world ", while John F. Kennedy was a youthful and popular leader who benefited from the rise of television in the 1960s. After Lyndon B. Johnson lost popular support due to the Vietnam War and Richard Nixon 's presidency collapsed in

18880-423: The original.] In the modern era, pursuant to the War Powers Resolution , Congress must authorize any troop deployments longer than 60 days, although that process relies on triggering mechanisms that have never been employed, rendering it ineffectual. Additionally, Congress provides a check to presidential military power through its control over military spending and regulation. Presidents have historically initiated

19040-526: The precipitating factor for the Financial Crisis of 2007–2008 was the bursting of the United States housing bubble and the subsequent subprime mortgage crisis , which occurred due to a high default rate and resulting foreclosures of mortgage loans , particularly adjustable-rate mortgages . Some or all of the following factors contributed to the crisis: The relaxing of credit lending standards by investment banks and commercial banks allowed for

19200-524: The president (and all other executive branch officers) from simultaneously being a member of Congress. Nevertheless, the modern presidency exerts significant power over legislation, both due to constitutional provisions and historical developments over time. The president's most significant legislative power derives from the Presentment Clause , which gives the president the power to veto any bill passed by Congress . While Congress can override

19360-406: The president believes are needed. Additionally, the president can attempt to shape legislation during the legislative process by exerting influence on individual members of Congress. Presidents possess this power because the Constitution is silent about who can write legislation, but the power is limited because only members of Congress can introduce legislation. The president or other officials of

19520-461: The president in the performance of executive duties. George Washington first claimed the privilege when Congress requested to see Chief Justice John Jay 's notes from an unpopular treaty negotiation with Great Britain . While not enshrined in the Constitution or any other law, Washington's action created the precedent for the privilege. When Nixon tried to use executive privilege as a reason for not turning over subpoenaed evidence to Congress during

19680-556: The president is authorized to adjourn Congress if the House and Senate cannot agree on the time of adjournment; no president has ever had to exercise this power. Suffice it to say that the President is made the sole repository of the executive powers of the United States, and the powers entrusted to him as well as the duties imposed upon him are awesome indeed. Nixon v. General Services Administration , 433 U.S. 425 (1977) ( Rehnquist, J. , dissenting ) The president

19840-422: The president personally has absolute immunity from court cases is contested and has been the subject of several Supreme Court decisions. Nixon v. Fitzgerald (1982) dismissed a civil lawsuit against by-then former president Richard Nixon based on his official actions. Clinton v. Jones (1997) decided that a president has no immunity against civil suits for actions taken before becoming president and ruled that

20000-505: The president to "receive Ambassadors." This clause, known as the Reception Clause, has been interpreted to imply that the president possesses broad power over matters of foreign policy, and to provide support for the president's exclusive authority to grant recognition to a foreign government. The Constitution also empowers the president to appoint United States ambassadors, and to propose and chiefly negotiate agreements between

20160-457: The president to appoint and receive ambassadors and conclude treaties with foreign powers, and on subsequent laws enacted by Congress, the modern presidency has primary responsibility for conducting U.S. foreign policy. The role includes responsibility for directing the world's most expensive military , which has the second-largest nuclear arsenal . The president also plays a leading role in federal legislation and domestic policymaking. As part of

20320-516: The president to recommend such measures to Congress which the president deems "necessary and expedient". This is done through the constitutionally-based State of the Union address, which usually outlines the president's legislative proposals for the coming year, and through other formal and informal communications with Congress. The president can be involved in crafting legislation by suggesting, requesting, or even insisting that Congress enact laws that

20480-494: The president's veto power with the Line Item Veto Act . The legislation empowered the president to sign any spending bill into law while simultaneously striking certain spending items within the bill, particularly any new spending, any amount of discretionary spending, or any new limited tax benefit. Congress could then repass that particular item. If the president then vetoed the new legislation, Congress could override

20640-508: The president. The state secrets privilege allows the president and the executive branch to withhold information or documents from discovery in legal proceedings if such release would harm national security . Precedent for the privilege arose early in the 19th century when Thomas Jefferson refused to release military documents in the treason trial of Aaron Burr and again in Totten v. United States 92 U.S. 105 (1876), when

20800-568: The president. In recent decades, presidents have also made increasing use of executive orders , agency regulations, and judicial appointments to shape domestic policy. The president is elected indirectly through the Electoral College to a four-year term, along with the vice president . Under the Twenty-second Amendment , ratified in 1951, no person who has been elected to two presidential terms may be elected to

20960-404: The previous thirty years worked towards "undivided presidential control of the executive branch and its agencies". She criticized proponents of the unitary executive theory for expanding "the many existing uncheckable executive powers—such as executive orders, decrees, memorandums, proclamations, national security directives and legislative signing statements—that already allow presidents to enact

21120-501: The price appreciation. In a Peabody Award -winning program, NPR correspondents argued that a "Giant Pool of Money" (represented by $ 70 trillion in worldwide fixed income investments) sought higher yields than those offered by U.S. Treasury bonds early in the decade. This pool of money had roughly doubled in size from 2000 to 2007, yet the supply of relatively safe, income generating investments had not grown as fast. Investment banks on Wall Street answered this demand with products such as

21280-424: The privilege also could not be used in civil suits. These cases established the legal precedent that executive privilege is valid, although the exact extent of the privilege has yet to be clearly defined. Additionally, federal courts have allowed this privilege to radiate outward and protect other executive branch employees but have weakened that protection for those executive branch communications that do not involve

21440-515: The privilege in more cases and at earlier stages of the litigation, thus in some instances causing dismissal of the suits before reaching the merits of the claims, as in the Ninth Circuit 's ruling in Mohamed v. Jeppesen Dataplan, Inc. Critics of the privilege claim its use has become a tool for the government to cover up illegal or embarrassing government actions. The degree to which

21600-500: The process for going to war, but critics have charged that there have been several conflicts in which presidents did not get official declarations, including Theodore Roosevelt 's military move into Panama in 1903, the Korean War , the Vietnam War , and the invasions of Grenada in 1983 and Panama in 1989. The amount of military detail handled personally by the president in wartime has varied greatly. George Washington,

21760-451: The promotion of thousands of small mortgage brokers, and by their close relationship to subprime loan aggregators such as Countrywide . Depending on how "subprime" mortgages are defined, they remained below 10% of all mortgage originations until 2004, when they rose to nearly 20% and remained there through the 2005–2006 peak of the United States housing bubble . The majority report of the Financial Crisis Inquiry Commission , written by

21920-400: The pyramid suffered a decrease. The following is a timeline of the major events of the financial crisis, including government responses, and the subsequent economic recovery. There is a really good reason for tighter credit. Tens of millions of homeowners who had substantial equity in their homes two years ago have little or nothing today. Businesses are facing the worst downturn since

22080-416: The relatively conservative government-sponsored enterprises (GSEs) policed mortgage originators and maintained relatively high underwriting standards prior to 2003. However, as market power shifted from securitizers to originators, and as intense competition from private securitizers undermined GSE power, mortgage standards declined and risky loans proliferated. The riskiest loans were originated in 2004–2007,

22240-610: The six Democratic appointees, the minority report, written by three of the four Republican appointees, studies by Federal Reserve economists, and the work of several independent scholars generally contend that government affordable housing policy was not the primary cause of the financial crisis. Although they concede that governmental policies had some role in causing the crisis, they contend that GSE loans performed better than loans securitized by private investment banks, and performed better than some loans originated by institutions that held loans in their own portfolios. In his dissent to

22400-493: The size and scope of the federal government, including more executive agencies. The traditionally small presidential staff was greatly expanded, with the Executive Office of the President being created in 1939, none of whom require Senate confirmation. Roosevelt's unprecedented re-election to a third and fourth term, the victory of the United States in World War II , and the nation's growing economy all helped established

22560-547: The statutory definition of "well capitalized." On December 8, 2017, President Donald Trump issued an executive order revising the Seal for the National Credit Union Administration. On August 20, 2019, the D.C. Circuit Court of Appeals upheld much of the NCUA's 2016 field-of-membership regulations changes, and on June 29, 2020, the Supreme Court of the United States denied an appeal to review

22720-464: The supply of mortgages originated at traditional lending standards had been exhausted, and continued strong demand began to drive down lending standards. The collateralized debt obligation in particular enabled financial institutions to obtain investor funds to finance subprime and other lending, extending or increasing the housing bubble and generating large fees. This essentially places cash payments from multiple mortgages or other debt obligations into

22880-462: The system of separation of powers , Article I, Section   7 of the Constitution gives the president the power to sign or veto federal legislation. Since modern presidents are typically viewed as leaders of their political parties, major policymaking is significantly shaped by the outcome of presidential elections, with presidents taking an active role in promoting their policy priorities to members of Congress who are often electorally dependent on

23040-622: The tradition of throwing out the ceremonial first pitch in 1910 at Griffith Stadium , Washington, D.C., on the Washington Senators's Opening Day . Every president since Taft, except for Jimmy Carter , threw out at least one ceremonial first ball or pitch for Opening Day, the All-Star Game , or the World Series , usually with much fanfare. Every president since Theodore Roosevelt has served as honorary president of

23200-407: The veto by its ordinary means, a two-thirds vote in both houses. In Clinton v. City of New York , 524 U.S. 417 (1998), the U.S. Supreme Court ruled such a legislative alteration of the veto power to be unconstitutional. For most of American history, candidates for president have sought election on the basis of a promised legislative agenda. Article II, Section 3, Clause 2 requires

23360-528: The veto should only be used in cases where a bill was unconstitutional, it is now routinely used in cases where presidents have policy disagreements with a bill. The veto – or threat of a veto – has thus evolved to make the modern presidency a central part of the American legislative process. Specifically, under the Presentment Clause, once a bill has been presented by Congress, the president has three options: In 1996, Congress attempted to enhance

23520-622: The years between 1994 and 2007. They also argue that the Federal Reserve's classification of CRA loans as "prime" is based on the faulty and self-serving assumption that high-interest-rate loans (3 percentage points over average) equal "subprime" loans. Others have pointed out that there were not enough of these loans made to cause a crisis of this magnitude. In an article in Portfolio magazine, Michael Lewis spoke with one trader who noted that "There weren't enough Americans with [bad] credit taking out [bad loans] to satisfy investors' appetite for

23680-464: The years of the most intense competition between securitizers and the lowest market share for the GSEs. The GSEs eventually relaxed their standards to try to catch up with the private banks. A contrarian view is that Fannie Mae and Freddie Mac led the way to relaxed underwriting standards, starting in 1995, by advocating the use of easy-to-qualify automated underwriting and appraisal systems, by designing no-down-payment products issued by lenders, by

23840-569: Was a significant milestone, as Jackson was not part of the Virginia and Massachusetts elite that had held the presidency for its first 40 years. Jacksonian democracy sought to strengthen the presidency at the expense of Congress, while broadening public participation as the nation rapidly expanded westward. However, his successor, Martin Van Buren , became unpopular after the Panic of 1837 , and

24000-524: Was among the five worst financial crises the world had experienced and led to a loss of more than $ 2 trillion from the global economy. U.S. home mortgage debt relative to GDP increased from an average of 46% during the 1990s to 73% during 2008, reaching $ 10.5 (~$ 14.6 trillion in 2023) trillion. The increase in cash out refinancings , as home values rose, fueled an increase in consumption that could no longer be sustained when home prices declined. Many financial institutions owned investments whose value

24160-517: Was available as a remedy. As of October 2019, a case was pending in the federal courts regarding access to personal tax returns in a criminal case brought against Donald Trump by the New York County District Attorney alleging violations of New York state law. As head of state , the president represents the United States government to its own people and represents the nation to the rest of the world. For example, during

24320-450: Was bailed-out. Instead of financing more domestic loans, some banks instead spent some of the stimulus money in more profitable areas such as investing in emerging markets and foreign currencies. In July 2010, the Dodd–Frank Wall Street Reform and Consumer Protection Act was enacted in the United States to "promote the financial stability of the United States". The Basel III capital and liquidity standards were adopted worldwide. Since

24480-542: Was based on home mortgages such as mortgage-backed securities , or credit derivatives used to insure them against failure, which declined in value significantly. The International Monetary Fund estimated that large U.S. and European banks lost more than $ 1 trillion on toxic assets and from bad loans from January 2007 to September 2009. Lack of investor confidence in bank solvency and declines in credit availability led to plummeting stock and commodity prices in late 2008 and early 2009. The crisis rapidly spread into

24640-550: Was made by Community Reinvestment Act (CRA)-covered lenders into low and mid-level income (LMI) borrowers and neighborhoods, representing 10% of all U.S. mortgage lending during the period. The majority of these were prime loans. Sub-prime loans made by CRA-covered institutions constituted a 3% market share of LMI loans in 1998, but in the run-up to the crisis, fully 25% of all subprime lending occurred at CRA-covered institutions and another 25% of subprime loans had some connection with CRA. However, most sub-prime loans were not made to

24800-539: Was nearly removed from office, with Congress remaining powerful during the two-term presidency of Civil War general Ulysses S. Grant . After the end of Reconstruction , Grover Cleveland would eventually become the first Democratic president elected since before the war, running in three consecutive elections (1884, 1888, 1892) and winning twice. In 1900, William McKinley became the first incumbent to win re-election since Grant in 1872. After McKinley's assassination by Leon Czolgosz in 1901, Theodore Roosevelt became

24960-517: Was not the cause of the crisis) is challenged by additional analysis. After researching the default of commercial loans during the financial crisis, Xudong An and Anthony B. Sanders reported (in December 2010): "We find limited evidence that substantial deterioration in CMBS [commercial mortgage-backed securities] loan underwriting occurred prior to the crisis." Other analysts support the contention that

25120-522: Was put in place thanks to a joint effort with the US Department of the Treasury. This plan was meant to make it easier for consumers and businesses to get credit by giving Americans who owned high-quality asset-backed securities more credit. Before the crisis, the Federal Reserve's stocks of Treasury securities were sold to pay for the increase in credit. This method was meant to keep banks from trying to give out their extra savings, which could cause

25280-516: Was signed into law and included permanently establishing NCUA's standard minimum share insurance amount at $ 250,000. The NCUA operates and manages the NCUSIF, insuring the deposits of more than 111 million account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions. Credit unions may also offer an array of additional financial services which are not covered by federal insurance. On March 9, 2011, then Board Chairman Debbie Matz unveiled MyCreditUnion.gov,

25440-489: Was the first branch of government described in the Constitution , to be the dominant branch of government; however, they did not expect a strong executive department. However, presidential power has shifted over time, which has resulted in claims that the modern presidency has become too powerful, unchecked, unbalanced, and "monarchist" in nature. In 2008 professor Dana D. Nelson expressed belief that presidents over

25600-752: Was the most recent to do so in July 1948, known as the Turnip Day Session . In addition, prior to ratification of the Twentieth Amendment in 1933, which brought forward the date on which Congress convenes from December to January, newly inaugurated presidents would routinely call the Senate to meet to confirm nominations or ratify treaties. In practice, the power has fallen into disuse in the modern era as Congress now formally remains in session year-round, convening pro forma sessions every three days even when ostensibly in recess. Correspondingly,

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