Workshop on the Risks of Wholesale Funding

Date:
August 13, 2014

Sponsors:
The Federal Reserve Bank of Boston and the Federal Reserve Bank of New York

Overview
Wholesale funding refers to a firm's use of deposits and other liabilities from institutions such as pension funds, money market mutual funds and other financial intermediaries. When a firm relies on short-term wholesale funds to support long-term illiquid assets, it becomes vulnerable to runs by its wholesale creditors. This risk manifested itself during the recent financial crisis, when many firms experienced an outflow of wholesale funds following the failure of Lehman Brothers. The resulting need to dispose of illiquid assets led to “fire sales” and the transmission of shocks throughout the financial system.

The purpose of this workshop is to promote a better understanding of the risks posed by wholesale funding, and to explore policy options for minimizing these risks. The workshop consists of a small number of high-quality papers that address risks that wholesale funding can pose to both individual institutions and to the financial system as a whole, remarks from William Dudley, President of the Federal Reserve Bank of New York, and a keynote speech by Eric Rosengren, President of the Federal Reserve Bank of Boston.

Audience

Attendance is by invitation only.

Agenda

Media

This event is open to the media. Chatham House Rule will be in effect for all but the welcoming and keynote remarks; media may report on comments made during the event, but may not attribute remarks to individuals or organizations. President Dudley’s welcoming remarks and President Rosengren's keynote remarks will be on-the-record. To register, please contact Andrea Priest at the New York Fed, andrea.priest@ny.frb.org or (212) 720-6139.

Workshop Location

Federal Reserve Bank of New York
33 Liberty Street
Benjamin Strong Room (10th Floor)
New York, NY

Speakers

President William Dudley (Federal Reserve Bank of New York)
President Eric Rosengren (Federal Reserve Bank of Boston)

Travel Expenses
Travel expenses will be reimbursed for presenters.

Conference Organizers
Patrick de Fontnouvelle (Federal Reserve Bank of Boston)
Dong Beom Choi (Federal Reserve Bank of New York)
Thomas Eisenbach (Federal Reserve Bank of New York)
Michael Fleming (Federal Reserve Bank of New York)